Amidst weak global cues and strong bulls locally, the volatility is all set to rise.As discussed yesterday, the Nifty kept on "waiting for direction" for almost the entire morning session, and kept on trading in a narrow range of about 25 points. A decisive move by the Bulls came in the last hour of trade, and our trading plan (a) got executed to perfection at that time. Today, given the global cues, we might get a negative gap down opening. We consider this as another buying opportunity as of now, unless we are proven otherwise. 1) The Elder Ray readings : Bull Power rises from +83 to +96 Bear Power also rises from +42 to +20, indicating that although the Bears have risen in power, the Bulls are in a much stronger position. For today, the Bulls need to surpass the Nifty above 5190 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5090 to regain their lost grounds.2) The Nifty continues to trade above all its key EMAs and its 50 and 200 DMA. However, it is below its 100DMA which is currently at 5198.3) The stochastics are once again well and deeply in the overbought zone and are still pointing upwards, confirming the Bullish stance on the Nifty. 4) In the above chart, the volumes keep on rising with the rise in the Nifty, indicating the strength of the Bullish trend. The MACD is again rising, and the ADX is now suggesting a gain of momentum to the up move. The Parabolic SAR continues to hold onto its buy signal.5) Considering the above, our trading plan for the day is as under.a) Above 5120, we will open fresh long positions with a SL of 5090 and a target of 5185. We will add to these long positions only above 5220.b) Around 5210, we will open fresh short positions with a SL of 5220 and a target of 5145. We will add to these short positions only below 5090.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Amidst weak global cues and strong bulls locally, the volatility is all set to rise.
As discussed yesterday, the Nifty kept on "waiting for direction" for almost the entire morning session, and kept on trading in a narrow range of about 25 points. A decisive move by the Bulls came in the last hour of trade, and our trading plan (a) got executed to perfection at that time. Today, given the global cues, we might get a negative gap down opening. We consider this as another buying opportunity as of now, unless we are proven otherwise.
1) The Elder Ray readings : Bull Power rises from +83 to +96 Bear Power also rises from +42 to +20, indicating that although the Bears have risen in power, the Bulls are in a much stronger position. For today, the Bulls need to surpass the Nifty above 5190 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5090 to regain their lost grounds.
2) The Nifty continues to trade above all its key EMAs and its 50 and 200 DMA. However, it is below its 100DMA which is currently at 5198.
3) The stochastics are once again well and deeply in the overbought zone and are still pointing upwards, confirming the Bullish stance on the Nifty.
Nifty formed a Doji yesterday, indicating indecision. Big move expected today.As discussed yesterday, we had expected a "Volatile Day", however, what we got was a NR7 day, with the market participants remaining undecided on the further direction throughout the entire trading session. None of our trading plans triggered, and we were happy to wait on the sidelines. As usual, after a NR7 day, we are expecting a big move from the market very shortly, if not today.
1) The Elder Ray readings : Bull Power rises from +65 to +83 Bear Power reduces from 0 to +42, indicating that the Bears have again lost their grounds. For today, the Bulls need to overcome 5155 to maintain their upwards momentum, whereas the Bears need to breach 5070 to regain their lost territory.
2) The Nifty continues to close above all its key EMAs and above its 50 and 200 DMA.
3) The stochastics continue to hover on the edge of the overbought zone.
4) In the above chart, the volumes have increased with the Nifty rising slightly, indicating that the up trend is likely to continue. The MACD is also seen as rising. The ADX is also suggesting a gain of momentum to the up move. The Parabolic SAR continues to hold out is Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5095, we will open fresh long positions with a SL of 5070 and a target of 5150. We will add to these long positions only above 5190.
b) Around 5170, we will open fresh short positions with a SL of 5190 and a target of 5100. We will add to these short positions only below 5070.
Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty formed a Doji yesterday, indicating indecision. Big move expected today.
As discussed yesterday, we had expected a "Volatile Day", however, what we got was a NR7 day, with the market participants remaining undecided on the further direction throughout the entire trading session. None of our trading plans triggered, and we were happy to wait on the sidelines. As usual, after a NR7 day, we are expecting a big move from the market very shortly, if not today.
1) The Elder Ray readings : Bull Power rises from +65 to +83 Bear Power reduces from 0 to +42, indicating that the Bears have again lost their grounds. For today, the Bulls need to overcome 5155 to maintain their upwards momentum, whereas the Bears need to breach 5070 to regain their lost territory.
2) The Nifty continues to close above all its key EMAs and above its 50 and 200 DMA.
3) The stochastics continue to hover on the edge of the overbought zone.
Up gaps on the critically poised Nifty, are difficult to sustain. Whipsawing expected.As discussed yesterday in our post, "Outlook not Bearish yet", the Nifty opened with a small gap down and then whipsawed dramatically between a 60 point range, before closing near the day's high with a gain of 40 points. During this volatility, the Bears have gained a slight advantage now, and a down trend could be just round the corner. The first signals of such a downtrend would appear if the Nifty sustains below today's opening mark and would get confirmed if the Nifty breaks yesterday's lows.1) The Elder Ray readings : Bull Power reduces from +151 to +65 Bear Power rises from +2 to 0, indicating that the Bears have now regained their lost grounds and are ready for action. For today, the Bulls need to overcome 5125 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5055 to retain their restraint on the Nifty breakout.2) The Nifty is trading above all its key EMAs and above its 50 and 200 DMA. 3) The stochastics are still hovering on the edge of the overbought zone, and are pointing horizontally. 4) In the above chart, the volumes have declined in yesterday's rise on the Nifty, a signal of creeping bearishness. The MACD is also falling. The ADX is suggesting a loss of momentum for the up move. However, the Parabolic SAR is continuing to hold on to its buy signal.5) Considering the above, our trading plan for the day is as under.a) Around 5145, we will open fresh short positions with a SL of 5175 and a target of 5090. We will add to these short positions only below 5070.b) Around 5080, we will open fresh long positions with a SL of 5070 and a target of 5130. We will add to these long positions only above 5175.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Up gaps on the critically poised Nifty, are difficult to sustain. Whipsawing expected.
As discussed yesterday in our post, "Outlook not Bearish yet", the Nifty opened with a small gap down and then whipsawed dramatically between a 60 point range, before closing near the day's high with a gain of 40 points. During this volatility, the Bears have gained a slight advantage now, and a down trend could be just round the corner. The first signals of such a downtrend would appear if the Nifty sustains below today's opening mark and would get confirmed if the Nifty breaks yesterday's lows.
1) The Elder Ray readings : Bull Power reduces from +151 to +65 Bear Power rises from +2 to 0, indicating that the Bears have now regained their lost grounds and are ready for action. For today, the Bulls need to overcome 5125 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5055 to retain their restraint on the Nifty breakout.
2) The Nifty is trading above all its key EMAs and above its 50 and 200 DMA.
3) The stochastics are still hovering on the edge of the overbought zone, and are pointing horizontally.
Even after a 150 point fall yesterday, the Bulls have not lost it all. Today's close critical.As discussed yesterday, there were "Resistance Bands Ahead" in the path of the Nifty, and it played out quite that way on the bourses, with the Nifty opening with a 35 point gap up and hitting the resistance zone in the morning session, only to sell off by the noon. Our plan (b) succeeded with great accuracy, and there was no chance of executing plan (a) with the Nifty swiftly falling through the entry and SL points. Today, is a critical day, and the follow up action either by the Bulls or the Bears, would determine the short term trend for days ahead.1) The Elder Ray readings : Bull Power rises from +111 to +151 Bear Power also rises from +34 to +2, indicating that the Bulls are still in the command, but the Bears are very close to their safe zone. For today, the Bulls need to overcome 5195 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5045 to return to safe zone.2) The Nifty is now trading at its 8EMA and above its 13EMA and 21EMA. However, it is still below all its key DMAs. The "death cross" of the 50DMA and the 200DMA occurred yesterday, which is a bearish sign for the future.3) The stochastics are hovering on the edge of the overbought zone, and are pointing downwards. 4) In the above chart, the volumes have increased in yesterday's fall, indicating sustainability to lower prices. The MACD is in the positive and has started falling, indicating a bearish phase ahead on the Nifty. The ADX, however, is suggesting a loss of momentum to the trend and is favoring the Bulls. The Parabolic SAR still holds on to its buy signal.5) Considering the above, our trading plan for the day is as under.a) Around 5000, we will open fresh long positions with a SL of 4985 and a target of 5100. We will add to these long positions only above 5135.b) Around 5110, we will open fresh short positions with a SL of 5130 and a target of 5000. We will add to these short positions only below 4985.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Even after a 150 point fall yesterday, the Bulls have not lost it all. Today's close critical.
As discussed yesterday, there were "Resistance Bands Ahead" in the path of the Nifty, and it played out quite that way on the bourses, with the Nifty opening with a 35 point gap up and hitting the resistance zone in the morning session, only to sell off by the noon. Our plan (b) succeeded with great accuracy, and there was no chance of executing plan (a) with the Nifty swiftly falling through the entry and SL points. Today, is a critical day, and the follow up action either by the Bulls or the Bears, would determine the short term trend for days ahead.
1) The Elder Ray readings : Bull Power rises from +111 to +151 Bear Power also rises from +34 to +2, indicating that the Bulls are still in the command, but the Bears are very close to their safe zone. For today, the Bulls need to overcome 5195 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5045 to return to safe zone.
2) The Nifty is now trading at its 8EMA and above its 13EMA and 21EMA. However, it is still below all its key DMAs. The "death cross" of the 50DMA and the 200DMA occurred yesterday, which is a bearish sign for the future.
3) The stochastics are hovering on the edge of the overbought zone, and are pointing downwards.
As the Nifty tries to break out, there are resistance zones ahead. RBI action watched.As discussed on Friday, "Critically poised Nifty" opened with a small positive gap and then never looked back. The Nifty closed above our extreme resistance level of 5130, indicating strength. In the course, it has reached within striking distance of medium term resistance zone of 5185 5205. Today, the Nifty is again likely to open with another positive gap up, and much would depend on the RBI action / inaction for the further movement on the Nifty.
1) The Elder Ray readings : Bull Power reduces minutely from +112 to +111 Bear Power also reduces minutely from +30 to +34, indicating that both the Bulls and the Bears are now tentative in their approach. For today, the Bulls need to overcome 5170 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5050 to return to their safe zone.
2) The Nifty continues to trade above all its key EMAs and above its 50 and 200 DMA. The 100 DMA at 5195 falls right into the resistance zone as detailed above.
3) The stochastics are well and deeply into the overbought zone and are still pointing upwards.
4) In the above chart, the volumes have increased along with the rise in the Nifty indicating that the upward move may sustain. The MACD has resumed its rise again. The ADX is indicating a loss of momentum for both the up move as well as the down move. The Parabolic SAR continues with its Buy signal.
5) Considering the above our trading plan for the day is as under.
a) Around 5115, we will open fresh long positions with a SL of 5095 and a target of 5185. We will add to these long positions only above 5205.
b) Around 5195, we will open fresh short positions with a SL of 5205 and a target of 5125. We will add to these short positions only below 5090.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As the Nifty tries to break out, there are resistance zones ahead. RBI action watched.
As discussed on Friday, "Critically poised Nifty" opened with a small positive gap and then never looked back. The Nifty closed above our extreme resistance level of 5130, indicating strength. In the course, it has reached within striking distance of medium term resistance zone of 5185 5205. Today, the Nifty is again likely to open with another positive gap up, and much would depend on the RBI action / inaction for the further movement on the Nifty.
1) The Elder Ray readings : Bull Power reduces minutely from +112 to +111 Bear Power also reduces minutely from +30 to +34, indicating that both the Bulls and the Bears are now tentative in their approach. For today, the Bulls need to overcome 5170 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5050 to return to their safe zone.
2) The Nifty continues to trade above all its key EMAs and above its 50 and 200 DMA. The 100 DMA at 5195 falls right into the resistance zone as detailed above.
3) The stochastics are well and deeply into the overbought zone and are still pointing upwards.
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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.
