Nifty is likely to test the range lows of 5130. A bounce back is likely from those levels.Yesterday, we had suggested, it could be a day of opportunities on both sides. As suggested, the Nifty once took support at 5190, and bounced back about 30 points from there. However, the Bulls were not able to overcome the day's high of 5217 and that brought up the Bear run once again and the Nifty closed just below 5190. Today, that Bear run is likely to continue. It may be helped with a gap down opening. The much tinkered support at 5130 will be tested today.1) The Elder Ray readings : Bull Power reduces from +42 to -14 Bear Power increases from -11 to -50, indicating that the Bulls have given away their hard earned safety within just two sessions, and that should encourage the Bears even more. For today, the Bulls need to overcome 5225 to return back to safety, whereas the Bears need to breach 5170 to maintain their downward momentum.2) The Nifty is now trading below its key EMAs which are inversely stacked and are pointing downwards, indicating a strong downward momentum developing.3) The stochastics are in the neutral zone and are pointing downwards.4) In the above chart, the volumes have started to increase with the fall in the Nifty indicating sustenance of the down move as of now. The MACD continues in the negative, but is not falling, indicating that the Bulls need not be counted out as yet. The ADX is also giving out a similar signal of indecision on the direction to the market. The Parabolic SAR is continuing with its sell signal.5) The is a distinct possibility of a bullish engulf formation on the daily charts by EOD today. 6) Considering the above, our trading plan for the day is as under.a) Around 5140, we will open fresh long positions with a SL of 5120 and a target of 5200. We will add to these long positions only above 5225.b) Around 5205, we will open fresh short positions with a SL of 5220 and a target of 5150. We will add to these short positions only below 5120.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty is likely to test the range lows of 5130. A bounce back is likely from those levels.
Yesterday, we had suggested, it could be a day of opportunities on both sides. As suggested, the Nifty once took support at 5190, and bounced back about 30 points from there. However, the Bulls were not able to overcome the day's high of 5217 and that brought up the Bear run once again and the Nifty closed just below 5190. Today, that Bear run is likely to continue. It may be helped with a gap down opening. The much tinkered support at 5130 will be tested today.
1) The Elder Ray readings : Bull Power reduces from +42 to -14 Bear Power increases from -11 to -50, indicating that the Bulls have given away their hard earned safety within just two sessions, and that should encourage the Bears even more. For today, the Bulls need to overcome 5225 to return back to safety, whereas the Bears need to breach 5170 to maintain their downward momentum.
2) The Nifty is now trading below its key EMAs which are inversely stacked and are pointing downwards, indicating a strong downward momentum developing.
3) The stochastics are in the neutral zone and are pointing downwards.
With the Nifty stuck within a range, it could be a day of opportunities both ways.Yesterday, we had suggested that the Nifty had returned back into the range, and the Nifty found support in the morning session at 5255 and then found resistance near 5280 to close a tad below 5240. Today, the Nifty is likely to be under pressure, but is also likely to find good support at levels of sub 5200. 1) The Elder Ray readings : Bull Power rises from +24 to +42 Bear Power reduces from -36 to -11, indicating that since both the Bulls and the Bears are well placed, and with the volatility likely to increase, it could turn out to be a day of trading both ways, if played carefully.2) The Nifty is trading right between its key EMAs which are stacked inversely between 5230 and 5250. The cross over of the 100 and 200 DMAs suggests that the Bulls will come into play at around 5130, which is a strong support for the Nifty. 3) The stochastics are in the neutral zone now.4) In the above chart, the volumes have slightly increased in yesterday's decline. The MACD is in the negative and is horizontal. The ADX also suggests congestion area for both Bulls and Bears. The Parabolic SAR continues to hold on to its sell signal.5) Considering the above, our trading plan for the day is as under.a) Around 5190, we will open fresh long positions with a SL of 5165 and a target of 5255. We will add to these long positions only above 5295.b) Below 5255, we will open fresh short positions with a SL of 5285 and a target of 5200. We will add to these short positions only below 5160.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty stuck within a range, it could be a day of opportunities both ways.
Yesterday, we had suggested that the Nifty had returned back into the range, and the Nifty found support in the morning session at 5255 and then found resistance near 5280 to close a tad below 5240. Today, the Nifty is likely to be under pressure, but is also likely to find good support at levels of sub 5200.
1) The Elder Ray readings : Bull Power rises from +24 to +42 Bear Power reduces from -36 to -11, indicating that since both the Bulls and the Bears are well placed, and with the volatility likely to increase, it could turn out to be a day of trading both ways, if played carefully.
2) The Nifty is trading right between its key EMAs which are stacked inversely between 5230 and 5250. The cross over of the 100 and 200 DMAs suggests that the Bulls will come into play at around 5130, which is a strong support for the Nifty.
The Bears failed. The Bulls are yet to show strength. The Nifty is still range bound.In our last post we had suggested, "Bearish signals still persist" , however, the Bears failed to deliver on their promise, and the Nifty never even looked like breaching its open or its day average. On the other hand, the Bulls did not show any major momentum, and the Nifty gyrated within a small trading range of 30-40 points. Today, given the global cues, the bias could be on the positive side for the Nifty. However, major resistances are very near.1) The Elder Ray readings : Bull Power increases from -13 to +24 Bear Power reduces from -82 to -36, indicating that both the Bulls and the Bears are now equidistant and safe in their own zones. This could unleash a spell of volatility. For today, the Bulls need to overcome 5265 to maintain their momentum, whereas the Bears need to breach 5200 to achieve the same.2) The Nifty is right into the cluster of its key EMAs which are between 5230 and 5250. 3) The stochastics are just out of the overbought zone and are pointing upwards.4) In the above chart, the volumes have decreased with the rise in the Nifty, raising doubts on its sustainability at higher levels. The MACD is very much in the negative. The ADX is suggesting a trend less market with no bias either towards the Bulls nor the Bears. The Parabolic SAR continues with its sell signal.5) Considering the above, our trading plan for the day is as under.a) Above 5235, we will open fresh long positions with a SL of 5215 and a target of 5280. We will add to these long positions only above 5310.b) Around 5285, we will open fresh short positions with a SL of 5305 and a target of 5235. We will add to these short positions only below 5210.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Bears failed. The Bulls are yet to show strength. The Nifty is still range bound.
In our last post we had suggested, "Bearish signals still persist" , however, the Bears failed to deliver on their promise, and the Nifty never even looked like breaching its open or its day average. On the other hand, the Bulls did not show any major momentum, and the Nifty gyrated within a small trading range of 30-40 points. Today, given the global cues, the bias could be on the positive side for the Nifty. However, major resistances are very near.
1) The Elder Ray readings : Bull Power increases from -13 to +24 Bear Power reduces from -82 to -36, indicating that both the Bulls and the Bears are now equidistant and safe in their own zones. This could unleash a spell of volatility. For today, the Bulls need to overcome 5265 to maintain their momentum, whereas the Bears need to breach 5200 to achieve the same.
2) The Nifty is right into the cluster of its key EMAs which are between 5230 and 5250.
3) The stochastics are just out of the overbought zone and are pointing upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty, raising doubts on its sustainability at higher levels. The MACD is very much in the negative. The ADX is suggesting a trend less market with no bias either towards the Bulls nor the Bears. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5235, we will open fresh long positions with a SL of 5215 and a target of 5280. We will add to these long positions only above 5310.
b) Around 5285, we will open fresh short positions with a SL of 5305 and a target of 5235. We will add to these short positions only below 5210.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
On the last day of the month, it is still sell on rise on the Nifty.On Friday we had suggested, "Bearish signals getting stronger", and that is what unfolded on the Nifty trading. We got the intermittent low breached without the previous day high being taken out. In a late hour swing, the Nifty managed to claw back, and we got a long legged doji formation on the daily charts, indicating the increasing volatility in the markets. This is a signal of continuation of the bearish move on the Nifty for today.1) The Elder Ray readings : Bull Power increases from -28 to -13 Bear Power also increases from -65 to -82 indicating that the Bears are getting stronger whereas the Bulls are stuck in the opponents territory. For today, the Bulls need to overcome 5245 to return to their safe zone, whereas the Bears need to breach 5140 to maintain their downward momentum.2) The Nifty is trading below its key EMAs which are inversely stacked between 5222 and 5250, forming a zone of resistance for any up move. The convergence of 100 and 200 DMAs at 5130 may provide the vital support to the Nifty. 3) The Stochastics are just into the oversold zone.4) In the above chart, the volumes have decreased, indicating lack of participation. The MACD is in the negative and is likely to fall further. The ADX is now increasing with a bias towards a down move. The Parabolic SAR continues to hold out its sell signal.5) Considering the above, our trading plan for the day is as under.a) Around 5230, we will open fresh short positions with a SL of 5245 and a target of 5145. We will not wait for 5230, if the Nifty sustains below 5190. We will add to these short positions only below 5125.b) Around 5145, we will open fresh long positions with a SL of 5125 and a target of 5195. We will add to these long positions only above 5245.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
On the last day of the month, it is still sell on rise on the Nifty.
On Friday we had suggested, "Bearish signals getting stronger", and that is what unfolded on the Nifty trading. We got the intermittent low breached without the previous day high being taken out. In a late hour swing, the Nifty managed to claw back, and we got a long legged doji formation on the daily charts, indicating the increasing volatility in the markets. This is a signal of continuation of the bearish move on the Nifty for today.
1) The Elder Ray readings : Bull Power increases from -28 to -13 Bear Power also increases from -65 to -82 indicating that the Bears are getting stronger whereas the Bulls are stuck in the opponents territory. For today, the Bulls need to overcome 5245 to return to their safe zone, whereas the Bears need to breach 5140 to maintain their downward momentum.
2) The Nifty is trading below its key EMAs which are inversely stacked between 5222 and 5250, forming a zone of resistance for any up move. The convergence of 100 and 200 DMAs at 5130 may provide the vital support to the Nifty.
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