As Bears try to wrest control of the Nifty, volatility may be unleashed. In our yesterday's post, "Bulls still in control", we had suggested that 5285 would be a good support and that the Bears needed to crack 5260 to regain their lost grounds. As it turned out, the Bears opened the Nifty near their primary target and swiftly achieved it. Part b of our trading plan B got triggered and fetched us a neat profit of 40 points. For today, given the global cues, the Nifty is likely to open flat to negative, and we would be keenly watching how it behaves in the 5180 5200 zone.1) The Elder Ray readings : Bull Power reduces from +80 to +8 Bear Power rises from +43 to -36, indicating that Bears have now regained their territory after 25 trading sessions, and now need to follow up to retain that. For today, the Bulls need to overcome 5275 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5210 to maintain their downwards momentum.2) The Nifty has now closed below its 8 and 13 EMAs, however, it has closed above its 21EMA and all its key DMAs.3) The stochastics are now out of the overbought zone and are pointing downwards. 4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the downturn may sustain. The MACD has also given a signal of reversal towards a down move. The ADX is suggesting a equal momentum for both the Bulls and the Bears. The Parabolic SAR has again turned into a Sell Signal with a SL at 5350.5) Considering the above, our trading plan for the day is as under.a) Around 5200, we will open fresh long positions with a SL of 5185 and a target of 5270. We will add to these long positions only above 5295.b) Around 5280, we will open fresh short positions with a SL of 5295 and a target of 5210. We will add to these short positions only below 5185.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
As Bears try to wrest control of the Nifty, volatility may be unleashed.
In our yesterday's post, "Bulls still in control", we had suggested that 5285 would be a good support and that the Bears needed to crack 5260 to regain their lost grounds. As it turned out, the Bears opened the Nifty near their primary target and swiftly achieved it. Part b of our trading plan B got triggered and fetched us a neat profit of 40 points. For today, given the global cues, the Nifty is likely to open flat to negative, and we would be keenly watching how it behaves in the 5180 5200 zone.
1) The Elder Ray readings : Bull Power reduces from +80 to +8 Bear Power rises from +43 to -36, indicating that Bears have now regained their territory after 25 trading sessions, and now need to follow up to retain that. For today, the Bulls need to overcome 5275 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5210 to maintain their downwards momentum.
2) The Nifty has now closed below its 8 and 13 EMAs, however, it has closed above its 21EMA and all its key DMAs.
3) The stochastics are now out of the overbought zone and are pointing downwards.
In spite of profit booking, the Nifty still is in a Bull grip. Buy on dips expected.In our yesterday's post, "Bulls stamp their authority", we had expected the Nifty to open with a mild gap down and that 5310 would be a good level to add long positions. This strategy yielded 25 points of profit twice, in a grinding market. The Nifty opened at 5315, with a negative gap of 30 points and then moved up and down within a 40 point range, finally to close at 5306 posting a loss of 40 points. Today, being a eventful day, the Nifty is likely to be more volatile. We expect 5285 to act as a good support.1) The Elder Ray readings : Bull Power reduces from +100 to +80 Bear Power also reduces from +36 to +43, indicating of the strong grip the Bulls have even in an indecisive market. The Bears now need two maybe three consecutive wins to turn the tide in their favor. For today, the Bulls need to overcome the levels of 5350 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5260 to regain their lost grounds.2) The Nifty continues to close above all its key EMAs and all its key DMAs.3) The stochastics also continue to remain in the overbought zone. 4) In the above chart, the volumes have remained stagnant with the Nifty moving in a small range, depicting profit booking by the Bulls. The MACD continues to be in the positive but is flattening, indicating some drop of momentum to the up move. The ADX is also suggesting a drop in the momentum of the up move, and still it is favoring the Bulls. The Parabolic SAR continues with its Buy signal with a turnaround point at 5260.5) Considering the above, our trading plan for the day is as under.a) Around 5285, we will open fresh long positions with a SL of 5260 and a target of 5330. We will add to these long positions only above 5360.b) Around 5350, we will open fresh short positions with a SL of 5360 and a target of 5300. We will add to these short positions only below 5260.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
In spite of profit booking, the Nifty still is in a Bull grip. Buy on dips expected.
In our yesterday's post, "Bulls stamp their authority", we had expected the Nifty to open with a mild gap down and that 5310 would be a good level to add long positions. This strategy yielded 25 points of profit twice, in a grinding market. The Nifty opened at 5315, with a negative gap of 30 points and then moved up and down within a 40 point range, finally to close at 5306 posting a loss of 40 points. Today, being a eventful day, the Nifty is likely to be more volatile. We expect 5285 to act as a good support.
1) The Elder Ray readings : Bull Power reduces from +100 to +80 Bear Power also reduces from +36 to +43, indicating of the strong grip the Bulls have even in an indecisive market. The Bears now need two maybe three consecutive wins to turn the tide in their favor. For today, the Bulls need to overcome the levels of 5350 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5260 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics also continue to remain in the overbought zone.
By overcoming the hump at 5340, Bulls have taken charge. Now need to follow up.In our yesterday's post, "Bears get a look in", we had suggested that Bears are trying to get their foot in, and that a big move on either side is lurking. That big move came in the afternoon, as the Bulls swept past the hurdles and gave a close with a 70 point gain on the Nifty. During the morning session, Bears tried to get their foot in, however, their inability to successfully breach previous day's close, ensured their demise. Today, given the global cues, the Nifty is likely to open soft, however, there are good supports around 5310, which we will target to add long positions.1) The Elder Ray readings : Bull Power rises from +68 to +100 Bear Power reduces from +25 to +36, indicating the strength of the Bullish grip on the Nifty. For today, the Bulls need to overcome the levels of 5365 on the Nifty to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5255 to regain their lost grounds.2) The Nifty continues to close above all its key EMAs and all its key DMAs, highlighting the Bullish trend.3) The stochastics are yet again well and deeply in the overbought zone. 4) In the above chart, the volumes have picked up with the rise in the Nifty confirming the Bullish stranglehold. The MACD is continuing the rise, with the histogram getting flat, again indicating the stability of the up move. The ADX is also suggesting a rise in the momentum for the up move. The Parabolic SAR has again turned into a Buy signal.5) Considering the above, our trading plan for the day is as under.a) Around 5305, we will open fresh long positions with a SL of 5285 and a target of 5375. We will add to these long positions only above 5400.b) Around 5390, we will open fresh short positions with a SL of 5400 and a target of 5335. We will add to these short positions only below 5285.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
By overcoming the hump at 5340, Bulls have taken charge. Now need to follow up.
In our yesterday's post, "Bears get a look in", we had suggested that Bears are trying to get their foot in, and that a big move on either side is lurking. That big move came in the afternoon, as the Bulls swept past the hurdles and gave a close with a 70 point gain on the Nifty. During the morning session, Bears tried to get their foot in, however, their inability to successfully breach previous day's close, ensured their demise. Today, given the global cues, the Nifty is likely to open soft, however, there are good supports around 5310, which we will target to add long positions.
1) The Elder Ray readings : Bull Power rises from +68 to +100 Bear Power reduces from +25 to +36, indicating the strength of the Bullish grip on the Nifty. For today, the Bulls need to overcome the levels of 5365 on the Nifty to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5255 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs, highlighting the Bullish trend.
3) The stochastics are yet again well and deeply in the overbought zone.
Amidst contracting trading ranges, Bears trying to get their foot in.As discussed yesterday, "Bulls showed signs of weakening", with the Nifty opening down with a negative gap of about 40 points, trading in a lower range for the entire session, and closing just below that, with a loss of about 42 points. For several days now, the trading range has been compacting, and a big move in either direction is being set up. We need to be ready to grab that move whenever it comes.1) The Elder Ray readings : Bull Power reduces from +102 to +68 Bear Power rises from +62 to +25, indicating that Bears are trying to creep in slowly and steadily, yet the Bulls are not letting go that easily, thereby, creating a suspense on the further direction. For today, the Bulls need to overcome the levels of 5315 to maintain their upwards momentum, whereas, the Bears need to breach the Nifty below the levels of 5235 to regain their lost grounds.2) The Nifty has closed just above its key EMAs, which are now showing signs of flattening. And, the Nifty is also above all its key DMAs.3) The stochastics are still in the overbought zone, but are pointing downwards now. 4) In the above chart, the volumes have yet again reduced in yesterday's fall, making the down move slightly tentative. The MACD is showing negative divergence, supporting a further down move. The ADX is also suggesting some increase of momentum for the Bears. The Parabolic SAR has now turned into a Sell Signal, with a turnaround point at 5334.5) Considering the above, our trading plan for the day is as under.a) Around 5310, we will open fresh short positions with a SL of 5335 and a target of 5245. We will add to these short positions only below 5220.b) Around 5240, we will open fresh long positions with a SL of 5220 and a target of 5300. We will add to these long positions only above 5335.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Amidst contracting trading ranges, Bears trying to get their foot in.
As discussed yesterday, "Bulls showed signs of weakening", with the Nifty opening down with a negative gap of about 40 points, trading in a lower range for the entire session, and closing just below that, with a loss of about 42 points. For several days now, the trading range has been compacting, and a big move in either direction is being set up. We need to be ready to grab that move whenever it comes.
1) The Elder Ray readings : Bull Power reduces from +102 to +68 Bear Power rises from +62 to +25, indicating that Bears are trying to creep in slowly and steadily, yet the Bulls are not letting go that easily, thereby, creating a suspense on the further direction. For today, the Bulls need to overcome the levels of 5315 to maintain their upwards momentum, whereas, the Bears need to breach the Nifty below the levels of 5235 to regain their lost grounds.
2) The Nifty has closed just above its key EMAs, which are now showing signs of flattening. And, the Nifty is also above all its key DMAs.
3) The stochastics are still in the overbought zone, but are pointing downwards now.
Amidst a series on narrow ranged trading sessions, Bulls look weak after a long time.As discussed on Friday, there were "Roadblocks ahead", that needed to be jumped over, but the Nifty was not able to even cross the previous day's high. However, in yet another narrow ranged trading session, the Bears were able to breach the previous day's low. As per our rules of trend identification, these are first signs of weakness appearing at the top.1) The Elder Ray readings : Bull Power reduces from +123 to +102 Bear Power rises from +79 to +62 indicating that silently, the Bears have been creeping in for the past 5 sessions now, and that the Bulls need to keep their vigil. For today, the Bulls need to take the Nifty over 5345 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5240 to regain their lost territory.2) The Nifty continues to close above all its key EMAs and all its key DMAs.3) The stochastics continue to remain well and deeply into the overbought zone. 4) In the above chart, the volumes keep on reducing with the stagnation in the Nifty, indicating nervousness at higher levels. The MACD continues in its rise, indicating the strong grip of the Bulls over the Nifty. The ADX is suggesting a further weakening of the momentum for the Bulls. The Parabolic SAR continues to hold out its Buy signal with a turnaround at 5259.5) Considering the above, our trading plan for the day is as under.a) Around 5280, we will open fresh long positions with a SL of 5260 and a target of 5340. We will add to these long positions only above 5375.b) Around 5345, we will open fresh short positions with a SL of 5375 and a target of 5285. We will add to these short positions only below 5260.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Amidst a series on narrow ranged trading sessions, Bulls look weak after a long time.
As discussed on Friday, there were "Roadblocks ahead", that needed to be jumped over, but the Nifty was not able to even cross the previous day's high. However, in yet another narrow ranged trading session, the Bears were able to breach the previous day's low. As per our rules of trend identification, these are first signs of weakness appearing at the top.
1) The Elder Ray readings : Bull Power reduces from +123 to +102 Bear Power rises from +79 to +62 indicating that silently, the Bears have been creeping in for the past 5 sessions now, and that the Bulls need to keep their vigil. For today, the Bulls need to take the Nifty over 5345 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5240 to regain their lost territory.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deeply into the overbought zone.
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