After a lackluster end to the last series, the fresh series starts with weak technicals.Yesterday, we had suggested, it would be a cautious expiry and look at what we got. We got a NR7 day (a day on which the range was the narrowest in the last 7 trading sessions) and also got a Inside Day (a day when neither the previous day's high nor the previous day's low was breached). Such days typically depict high amount of indecision amongst the market participants, and are usually followed by high turbulence days.1) The Elder Ray readings : Bull Power reduces from -17 to -28 Bear Power also reduces from -92 to -65 indicating that though the Bears have lost some momentum, they are still stronger than the Bulls, who are in the opponent's territory. For today, the Bulls need to overcome 5240 to return to safety, whereas the Bears need to breach 5170 to retain their momentum.2) The Nifty is trading well below its key EMAs which are pointing downwards and are stacked inversely. The 200 DMA which was flat has started to point downwards, indicating that the medium term trend has shifted towards the bears. 5130 the level where the 100 and 200 DMAs are converging, could be a point to be watched out for.3) The stochastics are just inside the oversold zone.4) In the above chart, the volumes have risen in yesterday's fall on the Nifty, indicating strengthening of the down move. The MACD is now well in the negative and is falling down. The ADX is getting stronger and is showing a bias towards a down move. The Parabolic SAR is continuing with its sell signal.5) Considering the above, our trading plan for the day is as under.a) Below 5215, we will open fresh short positions with a SL of 5245 and a target of 5170. We will add to these short positions only below 5135.b) Around 5145, we will open fresh long positions with a SL of 5135 and a target of 5190. We will add to these long positions only above 5245.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
After a lackluster end to the last series, the fresh series starts with weak technicals.
Yesterday, we had suggested, it would be a cautious expiry and look at what we got. We got a NR7 day (a day on which the range was the narrowest in the last 7 trading sessions) and also got a Inside Day (a day when neither the previous day's high nor the previous day's low was breached). Such days typically depict high amount of indecision amongst the market participants, and are usually followed by high turbulence days.
1) The Elder Ray readings : Bull Power reduces from -17 to -28 Bear Power also reduces from -92 to -65 indicating that though the Bears have lost some momentum, they are still stronger than the Bulls, who are in the opponent's territory. For today, the Bulls need to overcome 5240 to return to safety, whereas the Bears need to breach 5170 to retain their momentum.
2) The Nifty is trading well below its key EMAs which are pointing downwards and are stacked inversely. The 200 DMA which was flat has started to point downwards, indicating that the medium term trend has shifted towards the bears. 5130 the level where the 100 and 200 DMAs are converging, could be a point to be watched out for.
With the Nifty staying in the tight range for the entire series, expiry is still direction less.Yesterday, we suggested that bearishness was creeping in, and the Nifty after a flat opening was not able to cross 5240, where the bears struck hard and pulled down the Nifty to 5160, before the bulls pulled back to above 5200. Today, given the global cues and the local tremors, the Nifty is likely to be under bearish pressure still. However, given that today is the day of expiry for the current series, we can expect some volatility too.1) The Elder Ray readings : Bull Power increases from -29 to -17 Bear Power too increases from -81 to -92 indicating that the trading range is increasing, and that the market is gaining participative interest. Also suggests that the Bears are gaining momentum here and the Bulls are still not in their zone. For today, the Bulls need to overcome 5260 to regain their lost grounds whereas the Bears need to pull down the Nifty below 5145 to maintain their momentum.2) The Nifty is trading below its key EMAs which are stacked inversely, in the range of 5243 to 5263 which forms an immediate zone of resistance. The 100 and 200 DMAs converging near 5130 could be the support that the Bulls might look out for.3) The stochastics are just about to touch the oversold zone.4) In the above chart, the volumes have remained stagnant, indicating still there is lack of participation. The MACD has now turned negative and is threatening to go down even more. The ADX is suggesting a trend less market with a bias towards the bears. The Parabolic SAR is continuing with its Sell signal.5) Considering the above, our trading plan for the day is as under.a) Around 5240, we will open fresh short positions with a SL of 5265 and a target of 5160. We will add to these short positions only below 5130.b) Around 5145, we will open fresh long positions with a SL of 5130 and a target of 5215. We will add to these long positions only above 5270.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty staying in the tight range for the entire series, expiry is still direction less.
Yesterday, we suggested that bearishness was creeping in, and the Nifty after a flat opening was not able to cross 5240, where the bears struck hard and pulled down the Nifty to 5160, before the bulls pulled back to above 5200. Today, given the global cues and the local tremors, the Nifty is likely to be under bearish pressure still. However, given that today is the day of expiry for the current series, we can expect some volatility too.
1) The Elder Ray readings : Bull Power increases from -29 to -17 Bear Power too increases from -81 to -92 indicating that the trading range is increasing, and that the market is gaining participative interest. Also suggests that the Bears are gaining momentum here and the Bulls are still not in their zone. For today, the Bulls need to overcome 5260 to regain their lost grounds whereas the Bears need to pull down the Nifty below 5145 to maintain their momentum.
2) The Nifty is trading below its key EMAs which are stacked inversely, in the range of 5243 to 5263 which forms an immediate zone of resistance. The 100 and 200 DMAs converging near 5130 could be the support that the Bulls might look out for.
As the series nears expiry, Bearishness creeps into the Nifty.As discussed yesterday, the Nifty traded at the lower end of its trading range. It has been like that for almost the entire current series. Yesterday, we did suspect a mild bounce back, but the Bulls were not able to carry it any further than that. We should see some good follow up from the Bears now, else it will turn out to be a dull and drab series.1) The Elder Ray readings : Bull Power reduces from +43 to -29 Bear Power increases from -80 to -81, indicating that yesterday's rise in the Nifty could be deceptive as the Bulls have actually lost momentum. For today, the Bulls need to overcome 5285 to regain their lost territory whereas the Bears need to breach below 5170 to maintain their momentum.2) The Nifty is trading well below its key EMAs. The EMAs are clustered at the 5255 5270 zone which can act as a resistance to any up move. The 100 and 200 DMAs at 5125 5135 could provide support to any down move.3) The stochastics are in the neutral zone and are pointing downwards.4) In the above chart, the volumes have just marginally increased with the small rise in the Nifty. The MACD is now pointing downwards, giving out a negative divergence. The ADX is still suggesting a trend less market with a slight bias towards the bears. The Parabolic SAR has now turned into a Sell Signal.5) Considering the above, our trading plan for the day is as under.a) Around 5240, we will open fresh short positions with a SL of 5275 and a target of 5195. We will add to these short positions below 5165 only.b) Around 5190, we will open fresh long positions with a SL of 5165 and a target of 5225. We will add to these long positions above 5275 only.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
As the series nears expiry, Bearishness creeps into the Nifty.
As discussed yesterday, the Nifty traded at the lower end of its trading range. It has been like that for almost the entire current series. Yesterday, we did suspect a mild bounce back, but the Bulls were not able to carry it any further than that. We should see some good follow up from the Bears now, else it will turn out to be a dull and drab series.
1) The Elder Ray readings : Bull Power reduces from +43 to -29 Bear Power increases from -80 to -81, indicating that yesterday's rise in the Nifty could be deceptive as the Bulls have actually lost momentum. For today, the Bulls need to overcome 5285 to regain their lost territory whereas the Bears need to breach below 5170 to maintain their momentum.
2) The Nifty is trading well below its key EMAs. The EMAs are clustered at the 5255 5270 zone which can act as a resistance to any up move. The 100 and 200 DMAs at 5125 5135 could provide support to any down move.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have just marginally increased with the small rise in the Nifty. The MACD is now pointing downwards, giving out a negative divergence. The ADX is still suggesting a trend less market with a slight bias towards the bears. The Parabolic SAR has now turned into a Sell Signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5240, we will open fresh short positions with a SL of 5275 and a target of 5195. We will add to these short positions below 5165 only.
b) Around 5190, we will open fresh long positions with a SL of 5165 and a target of 5225. We will add to these long positions above 5275 only.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As the Nifty trades at the lower end of its trading range, volatility may rise today.As discussed yesterday, the Nifty was clueless on direction for most of the morning session. However, once 5280 and then 5240 were broken, the bears took charge. However, they were not able to close the Nifty beyond the lower boundary of its current trading range. Today, given the global cues, the Nifty is likely to open with a slight negative bias, but given the track record of bears at the lower end, and bulls at the upper end of the trading range, a bounce back from these levels cannot be ruled out.1) The Elder Ray readings : Bull Power reduces from +58 to +43 Bear Power increases from -33 to -80, indicating that both the Bulls and Bears are safe in their own zones, with the Bears having a edge over the Bulls. For today, the Bulls need to surpass 5255 to retain their territory whereas the Bears need to breach 5175 to retain their momentum.2) The Nifty is now trading well below its key EMAs and now the 100 and 200 DMAs at 5121 and 5137 respectively can offer some valuable support. Any further bearish trend will start only with a close below 5120.3) The fast stochastics are in the oversold zone now, with the slow stochastics lagging way behind. This indicates some momentum on part of the Bears.4) In the above chart, the volumes have remained stagnant during yesterday's fall, raising suspicion on sustaining of this falling move. The MACD is in the negative and is horizontal. The ADX is also suggesting a momentum less market with a bias towards a down move. The Parabolic SAR is continuing with its Buy signal.5) Considering the above, our trading plan for the day is as under.a) Below 5235, we will open fresh short positions with a SL of 5250 and a target of 5150. We will add to these short positions only below 5120.b) Around 5150, we will open fresh long positions with a SL of 5130 and a target of 5225. We will add to these long positions only above 5250.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
As the Nifty trades at the lower end of its trading range, volatility may rise today.
As discussed yesterday, the Nifty was clueless on direction for most of the morning session. However, once 5280 and then 5240 were broken, the bears took charge. However, they were not able to close the Nifty beyond the lower boundary of its current trading range. Today, given the global cues, the Nifty is likely to open with a slight negative bias, but given the track record of bears at the lower end, and bulls at the upper end of the trading range, a bounce back from these levels cannot be ruled out.
1) The Elder Ray readings : Bull Power reduces from +58 to +43 Bear Power increases from -33 to -80, indicating that both the Bulls and Bears are safe in their own zones, with the Bears having a edge over the Bulls. For today, the Bulls need to surpass 5255 to retain their territory whereas the Bears need to breach 5175 to retain their momentum.
2) The Nifty is now trading well below its key EMAs and now the 100 and 200 DMAs at 5121 and 5137 respectively can offer some valuable support. Any further bearish trend will start only with a close below 5120.
3) The fast stochastics are in the oversold zone now, with the slow stochastics lagging way behind. This indicates some momentum on part of the Bears.
4) In the above chart, the volumes have remained stagnant during yesterday's fall, raising suspicion on sustaining of this falling move. The MACD is in the negative and is horizontal. The ADX is also suggesting a momentum less market with a bias towards a down move. The Parabolic SAR is continuing with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5235, we will open fresh short positions with a SL of 5250 and a target of 5150. We will add to these short positions only below 5120.
b) Around 5150, we will open fresh long positions with a SL of 5130 and a target of 5225. We will add to these long positions only above 5250.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As we enter the expiry week, the Nifty is still clueless on direction, stuck in a range.As discussed in our last post, we saw the bullish undertones on the Nifty, for almost the entire trading session on Friday. Even after the 'freak trade' that dragged the Nifty down, the Nifty was able to charge back and close at a respectable level of 5291, much higher than the day's lows. Today, the Nifty is likely to open flat and is likely to drift listlessly within its confined range.1) The Elder Ray readings : Bull Power reduces from +66 to +58 Bear Power rises from +15 to -33 indicating that both the Bulls and Bears are now safe in their own zones, with the Bears having regained their lost territory. For today, the Bulls need to cross over 5340 and the Bears need to drag the Nifty below 5245 to retain their respective momentum. These could well become the trading boundaries for the day.2) The Nifty is trading just above its key EMAs which are clustered around 5280. The 50 DMA which is at 5337 could act as a major resistance to any up move.3) The stochastics are still in the neutral zone, but are now pointing downwards.4) In the above chart, the volumes have been static with the Nifty actually going nowhere in the past three trading sessions, indicating lack of participation. The MACD is in the Negative and is horizontal, negating any directional bias. The ADX too is pointing to a direction less market and is showing no bias either to the Bulls or to the Bears. The Parabolic SAR is continuing with its Buy signal.5) Considering the above, our trading plan for the day is as under.a) Below 5340, we will open fresh short positions with a SL of 5360 and a target of 5270. We will add to these short positions only below 5240.b) Around 5260, we will open fresh long positions with a SL of 5240 and a target of 5315. We will add to these long positions only above 5365.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
As we enter the expiry week, the Nifty is still clueless on direction, stuck in a range.
As discussed in our last post, we saw the bullish undertones on the Nifty, for almost the entire trading session on Friday. Even after the 'freak trade' that dragged the Nifty down, the Nifty was able to charge back and close at a respectable level of 5291, much higher than the day's lows. Today, the Nifty is likely to open flat and is likely to drift listlessly within its confined range.
1) The Elder Ray readings : Bull Power reduces from +66 to +58 Bear Power rises from +15 to -33 indicating that both the Bulls and Bears are now safe in their own zones, with the Bears having regained their lost territory. For today, the Bulls need to cross over 5340 and the Bears need to drag the Nifty below 5245 to retain their respective momentum. These could well become the trading boundaries for the day.
2) The Nifty is trading just above its key EMAs which are clustered around 5280. The 50 DMA which is at 5337 could act as a major resistance to any up move.
3) The stochastics are still in the neutral zone, but are now pointing downwards.
4) In the above chart, the volumes have been static with the Nifty actually going nowhere in the past three trading sessions, indicating lack of participation. The MACD is in the Negative and is horizontal, negating any directional bias. The ADX too is pointing to a direction less market and is showing no bias either to the Bulls or to the Bears. The Parabolic SAR is continuing with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5340, we will open fresh short positions with a SL of 5360 and a target of 5270. We will add to these short positions only below 5240.
b) Around 5260, we will open fresh long positions with a SL of 5240 and a target of 5315. We will add to these long positions only above 5365.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.
