Nifty stuck right in the middle of its trading range and waiting for further direction.As discussed in yesterday's post, "Bulls need to follow up", the Bulls opened the Nifty with a hefty 50 point positive gap, however, due to lack of follow up, they were unable to sustain the Nifty above these levels, and the Nifty closed below its opening mark, albeit with a gain of 26 points. In the process, we again had a NR7 day on the Nifty and a big move again on either side is expected today.1) The Elder Ray readings: Bull Power rises from -10 to +24 Bear Power reduces from -64 to -1, indicating that now the Bulls & the Bears both are in their respective zones, with the Nifty tentatively poised right in the middle. For today, the Bulls need to overcome 5265 whereas the Bears need to breach 5225 to maintain their respective momentum.2) The Nifty has closed above all its key EMAs and all its key DMAs, which is a Bullish indication.3) The stochastics are in the neutral zone and have given a bullish crossover. This needs to be confirmed by price action today. 4) In the above chart, the volumes have increased with the rise in the Nifty, indicating that this up-move may be sustainable. The MACD is in the positive and is pausing. The MACD histogram is in the negative and is also pausing, giving mixed signals. The ADX is suggesting loss of momentum, but is favoring the Bulls. The Parabolic SAR is giving out its sell signal with a SL 0f 5302.5) Considering the above, our trading plan for the day is as under.a) Below 5230, we will open fresh short positions with a SL of 5245 and a target of 5185. We will add to these short positions only below 5160.b) Above 5250, we will open fresh long positions with a SL of 5230 and a target of 5300. We will add to these long positions only above 5325.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty stuck right in the middle of its trading range and waiting for further direction.
As discussed in yesterday's post, "Bulls need to follow up", the Bulls opened the Nifty with a hefty 50 point positive gap, however, due to lack of follow up, they were unable to sustain the Nifty above these levels, and the Nifty closed below its opening mark, albeit with a gain of 26 points. In the process, we again had a NR7 day on the Nifty and a big move again on either side is expected today.
1) The Elder Ray readings: Bull Power rises from -10 to +24 Bear Power reduces from -64 to -1, indicating that now the Bulls & the Bears both are in their respective zones, with the Nifty tentatively poised right in the middle. For today, the Bulls need to overcome 5265 whereas the Bears need to breach 5225 to maintain their respective momentum.
2) The Nifty has closed above all its key EMAs and all its key DMAs, which is a Bullish indication.
3) The stochastics are in the neutral zone and have given a bullish crossover. This needs to be confirmed by price action today.
With Nifty taking support at 5170 and bouncing back, the Bulls will have to follow up.As discussed yesterday, "Nifty was approaching key support levels", the Nifty opened with a small up gap, then drifted down towards the support levels of 5170 and then staged a bounce back of sorts up to 5223 before closing at 5216 with a minor gain of 23 points. Our trading plan (a) got triggered and missed the target by just a couple of points. Global cues are there to help the Bulls get a positive opening. But the further move on the Nifty depends on the follow up by the Bulls.1) The Elder Ray readings: Bull Power reduces from +1 to -10 Bear Power rises from -54 to -64, indicating that the Bears still have it, and that the Bulls are now out of their safe zone after a marathon 31 trading sessions. For today, the Bulls need to overcome the levels of 5240 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5165 to maintain their downwards momentum.2) The Nifty has closed below its 8EMA and 13EMA, but is marginally above its 21EMA. It is also above all its key DMAs.3) The stochastics are still in the neutral zone and are pointing downwards.4) In the above chart, the volumes have picked up slightly with the rise in the Nifty, indicating that a further up move is possible. The MACD is indicating weakness in the up-move as it is still in the positive and is falling. The MACD histogram is in the negative and is flat, indicating a very range-bound market ahead. The ADX is also suggesting loss of momentum, with a bias towards Bears. The Parabolic SAR continues with its Sell signal, with a SL of 5317.5) 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 5180 and a target of 5245. We will add to these long positions only above 5275.b) Around 5260, we will open fresh short positions with a SL of 5275 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
With Nifty taking support at 5170 and bouncing back, the Bulls will have to follow up.
As discussed yesterday, "Nifty was approaching key support levels", the Nifty opened with a small up gap, then drifted down towards the support levels of 5170 and then staged a bounce back of sorts up to 5223 before closing at 5216 with a minor gain of 23 points. Our trading plan (a) got triggered and missed the target by just a couple of points. Global cues are there to help the Bulls get a positive opening. But the further move on the Nifty depends on the follow up by the Bulls.
1) The Elder Ray readings: Bull Power reduces from +1 to -10 Bear Power rises from -54 to -64, indicating that the Bears still have it, and that the Bulls are now out of their safe zone after a marathon 31 trading sessions. For today, the Bulls need to overcome the levels of 5240 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5165 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and 13EMA, but is marginally above its 21EMA. It is also above all its key DMAs.
3) The stochastics are still in the neutral zone and are pointing downwards.
Further move on the Nifty will depend on how Bulls defend 5165 today & tomorrow.As discussed yesterday, the Nifty tried to bounce back, with a positive opening, but soon gave away most of the gains and remained below the day's high, before closing with a minor loss of 4 points at 5193. The Nifty is likely to continue in a grinding mode until the narrow range of 5165 to 5225 is broken decisively.1) The Elder Ray readings: Bull Power reduces from +4 to +1 Bear Power rises from -52 to -54 indicating the tug of war between the Bull & Bears, which is keeping the Nifty in a tight range. For today, the Bulls need to surpass the levels of 5230 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5180 to maintain their downwards momentum.2) The is trading below all its key EMAs but above all its key DMAs, which is making the Nifty trade in a tight range.3) The stochastics are in the neutral zone and are pointing downwards. 4) In the above chart, the volumes have increased in yesterday's fall on the Nifty making the down move more sustainable. The MACD is also in the positive and is falling giving more credence to the down move. The ADX however, is suggesting a loss of momentum for the down move. The Parabolic SAR continues to give out its sell signal with a SL of 5330.5) Considering the above, our trading plan is as under.a) Around 5160, we will open fresh long positions with a SL of 5135 and a target of 5225. We will add to these long positions only above 5250.b) Around 5230, we will open fresh short positions with a SL of 5250 and a target of 5170. We will add to these short positions only below 5135.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Further move on the Nifty will depend on how Bulls defend 5165 today & tomorrow.
As discussed yesterday, the Nifty tried to bounce back, with a positive opening, but soon gave away most of the gains and remained below the day's high, before closing with a minor loss of 4 points at 5193. The Nifty is likely to continue in a grinding mode until the narrow range of 5165 to 5225 is broken decisively.
1) The Elder Ray readings: Bull Power reduces from +4 to +1 Bear Power rises from -52 to -54 indicating the tug of war between the Bull & Bears, which is keeping the Nifty in a tight range. For today, the Bulls need to surpass the levels of 5230 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5180 to maintain their downwards momentum.
2) The is trading below all its key EMAs but above all its key DMAs, which is making the Nifty trade in a tight range.
3) The stochastics are in the neutral zone and are pointing downwards.
Nifty likely to take support and stage a bounce back upto 5250, maybe higher.As discussed yesterday in our post "Rangebound volatility to unfold", we saw the Nifty open with a minor gap down, then try to claw back to near the day's highs twice, before selling off and settling with a closing loss of 30 points. The Bulls tried hard, but were not successful in taking out the day's high, and hence bolstered the Bears to break the day's lows. However, the Bears were not able to breach 5190, which is the level from where the recent rally started. This gives credence for our belief, that the Nifty may try to stage a bounce-back.1) The Elder Ray readings : Bull Power reduces from +17 to +4 Bear Power rises from -33 to -52, indicating that the Bears are getting stronger, however, they have not been able to pull the Bulls out of their safe zone. For today, the Bulls need to overcome the levels of 5250 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5185 to maintain their downwards momentum.2) The Nifty has now closed below all its key EMAs, however, it has closed above all its key DMAs, making chances of a bounce back more likely.3) The stochastics are in the neutral zone and are pointing downwards. 4) In the above chart, the volumes have depleted in yesterday's fall on the Nifty, making the down move unsustainable. The MACD has given a negative indication and the histogram has also turned negative and is falling. The ADX is also suggesting a bias towards the Bears, but the momentum is falling fast. The Parabolic SAR continues with its sell signal with a SL at 5340.5) Considering the above, our trading plan for the day is as under.a) Above 5215, we will open fresh long positions with a SL of 5195 and a target of 5265. We will add to these long positions only above 5285.b) Below 5210, we will open fresh short positions with a SL of 5235 and a target of 5145. We will add to these short positions only below 5130.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty likely to take support and stage a bounce back upto 5250, maybe higher.
As discussed yesterday in our post "Rangebound volatility to unfold", we saw the Nifty open with a minor gap down, then try to claw back to near the day's highs twice, before selling off and settling with a closing loss of 30 points. The Bulls tried hard, but were not successful in taking out the day's high, and hence bolstered the Bears to break the day's lows. However, the Bears were not able to breach 5190, which is the level from where the recent rally started. This gives credence for our belief, that the Nifty may try to stage a bounce-back.
1) The Elder Ray readings : Bull Power reduces from +17 to +4 Bear Power rises from -33 to -52, indicating that the Bears are getting stronger, however, they have not been able to pull the Bulls out of their safe zone. For today, the Bulls need to overcome the levels of 5250 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5185 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs, however, it has closed above all its key DMAs, making chances of a bounce back more likely.
3) The stochastics are in the neutral zone and are pointing downwards.
With technicals turning down and globals pointing up, Nifty may turn volatile.As discussed in our Friday's post "Volatility may rise now", we saw the Nifty gyrate between 5270 and 5215 wildly. The Bulls were able to overcome the previous day's high and the Bears were able to breach the previous day's low, which is a typical indication of in-built intraday volatility. This range of volatility may rise yet again if the market tends to remain indecisive.1) The Elder Ray readings: Bull Power rises from +8 to +17 Bear Power reduces from -36 to -33 indicating that both the Bulls and Bears are equidistant and safe in their own territories, which could induce increased volatility. For today, the Bulls need to overcome 5265 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5205 to maintain their downwards momentum.2) The Nifty has closed below its 8EMA and 13EMA, however it is above its 21EMA and all its key DMAs.3) The stochastics are in the neutral zone and are pointing downwards. 4) In the above chart, the volumes have depleted with the Nifty falling slightly, indicating that the move might be turning downwards now. The MACD has given a negative crossover, with the histogram also turning negative. The ADX is suggesting a lowering of the momentum and that the Nifty may remain range-bound. The Parabolic SAR is continuing to hold out its Sell signal.5) Considering the above, our trading plan for the day is as under.a) Around 5260 we will open fresh short positions with a SL of 5285 and a target of 5210. We will add to these short positions only below 5170.b) Around 5190 we will open fresh long positions with a SL of 5170 and a target of 5245. We will add to these long positions only above 5285.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With technicals turning down and globals pointing up, Nifty may turn volatile.
As discussed in our Friday's post "Volatility may rise now", we saw the Nifty gyrate between 5270 and 5215 wildly. The Bulls were able to overcome the previous day's high and the Bears were able to breach the previous day's low, which is a typical indication of in-built intraday volatility. This range of volatility may rise yet again if the market tends to remain indecisive.
1) The Elder Ray readings: Bull Power rises from +8 to +17 Bear Power reduces from -36 to -33 indicating that both the Bulls and Bears are equidistant and safe in their own territories, which could induce increased volatility. For today, the Bulls need to overcome 5265 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5205 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and 13EMA, however it is above its 21EMA and all its key DMAs.
3) The stochastics are in the neutral zone and are pointing downwards.
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