With weak technicals and strong global cues, the Nifty is poised precariously.As discussed yesterday, we saw a "Volatile Expiry" for the July series, with the Nifty opening with a positive gap up, and almost immediately giving up all the gains and trading in a narrow range for almost the entire trading session, before tanking 66 points in the last hour. Today, it is a start to a fresh series, and the global cues are pretty positive to ensure a gap up opening.1) The Elder Ray readings : Bull Power rises from -67 to -41 Bear Power also rises from -112 to -135 indicating that although the Bulls have gained, they are not yet in their safe zone. For today, the Bulls need to overcome 5150 on the Nifty to regain their lost grounds, whereas the Bears need to breach the Nifty below 5010 to maintain their downwards momentum.2) The Nifty is now trading below all its key EMAs and all its key DMAs.3) The stochastics are well and deeply in the oversold zone.4) In the above chart, the volumes have increased with yesterday's fall in the Nifty suggesting that the downtrend is likely to continue further. The MACD also continues to fall, with the Histogram touching a new bottom. The ADX is also suggesting a rising momentum for the Bears. The Parabolic SAR continues to hold its sell signal with a SL at 5195 now.5) Considering the above, our trading plan for the day is as under.a) Around 5090, we will open fresh short positions with a SL of 5115 and a target of 5010. We will add to these short positions only below 4970.b) Around 5000, we will open fresh long positions with a SL of 4975 and a target of 5070. We will add to these long positions only above 5115.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With weak technicals and strong global cues, the Nifty is poised precariously.
As discussed yesterday, we saw a "Volatile Expiry" for the July series, with the Nifty opening with a positive gap up, and almost immediately giving up all the gains and trading in a narrow range for almost the entire trading session, before tanking 66 points in the last hour. Today, it is a start to a fresh series, and the global cues are pretty positive to ensure a gap up opening.
1) The Elder Ray readings : Bull Power rises from -67 to -41 Bear Power also rises from -112 to -135 indicating that although the Bulls have gained, they are not yet in their safe zone. For today, the Bulls need to overcome 5150 on the Nifty to regain their lost grounds, whereas the Bears need to breach the Nifty below 5010 to maintain their downwards momentum.
2) The Nifty is now trading below all its key EMAs and all its key DMAs.
3) The stochastics are well and deeply in the oversold zone.
On the series expiry day, Nifty remains bearish. Volatility may rise today.As discussed yesterday, "Sell on rise" turned out to be the mantra for the day, as the Nifty opened with a minor gap down, made the day's high lower than the previous close and then sold off, only to recover in the afternoon and then sell off again. The weekly open and high are the same around 5165 and this would remain a challenge for the Bulls even today.1) The Elder Ray readings: Bull Power reduces from -58 to -67 Bear Power rises from -98 to -112 indicating that the Bears are slowly and steadily gaining momentum on their side. For today the Bulls need to overcome the levels of 5180 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5065 to maintain their downwards momentum.2) The Nifty has yet again closed below all its key EMAs and its 100DMA. The 50DMA and the 200DMA are poised just about 5100.3) The stochastics are in the oversold zone and are pointing horizontal.4) In the above chart, the volumes have increased in yesterday's fall on the Nifty indicating that bearishness can continue for a while. The MACD continues to fall, however the histogram is suggesting a pause. The ADX is now suggesting a rising momentum that is favoring the Bears. The Parabolic SAR continues with its Sell signal with a SL now at 5227.5) Considering the above, our trading plan for the day is as under.a) Around 5135, we will open fresh short positions with a SL of 5155 and a target of 5085. We will add to these short positions only below 5065.b) Around 5085, we will open fresh long positions with a SL of 5065 and a target of 5130. We will add to these long positions only above 5155.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
On the series expiry day, Nifty remains bearish. Volatility may rise today.
As discussed yesterday, "Sell on rise" turned out to be the mantra for the day, as the Nifty opened with a minor gap down, made the day's high lower than the previous close and then sold off, only to recover in the afternoon and then sell off again. The weekly open and high are the same around 5165 and this would remain a challenge for the Bulls even today.
1) The Elder Ray readings: Bull Power reduces from -58 to -67 Bear Power rises from -98 to -112 indicating that the Bears are slowly and steadily gaining momentum on their side. For today the Bulls need to overcome the levels of 5180 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5065 to maintain their downwards momentum.
2) The Nifty has yet again closed below all its key EMAs and its 100DMA. The 50DMA and the 200DMA are poised just about 5100.
3) The stochastics are in the oversold zone and are pointing horizontal.
With the Nifty trading well below its weekly open, it is sell on rise as of now.As discussed yesterday, we witnessed "Bears on the roll", with the Nifty opening with a minor positive gap, yet not succeeding in taking out previous day's high but succeeding in breaching previous day's lows. Given the global cues, the Nifty is most likely to open weak. However, there are a few supports in the 5080 5100 zone, and depending on how the Nifty tackles this zone, we should foresee the further direction on the markets.1) The Elder Ray readings: Bull Power reduces from -50 to -58 Bear Power also reduces from -106 to -98 indicating that the Bears have lost some momentum, however, the Bulls are yet out of their safe zone. For today, the Bulls need to overcome the levels of 5195 on the Nifty to regain their lost grounds, whereas the Bears need to breach the levels of 5085 to maintain their downwards momentum.2) The Nifty is still trading below all its key EMAs and also below its 100DMA. The 50DMA and the 200DMA stacked up at 5094 and 5101 should be key levels to be watched out for.3) The stochastics are well and deeply in the oversold zone.4) In the above chart, the volumes have increased with the Nifty actually going nowhere, indicating of support at lower levels. The MACD continues to fall. The ADX is also suggesting a rising momentum for the downturn. The Parabolic SAR continues with its Sell signal with the SL now pegged at 5251.5) Considering the above, our trading plan for the day is as under.a) Above 5100, we will open fresh long positions with a SL of 5085 and a target of 5150. We will add to these long positions only above 5175.b) Below 5155, we will open fresh short positions with a SL of 5175 and a target of 5100. We will add to these short positions only below 5085.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty trading well below its weekly open, it is sell on rise as of now.
As discussed yesterday, we witnessed "Bears on the roll", with the Nifty opening with a minor positive gap, yet not succeeding in taking out previous day's high but succeeding in breaching previous day's lows. Given the global cues, the Nifty is most likely to open weak. However, there are a few supports in the 5080 5100 zone, and depending on how the Nifty tackles this zone, we should foresee the further direction on the markets.
1) The Elder Ray readings: Bull Power reduces from -50 to -58 Bear Power also reduces from -106 to -98 indicating that the Bears have lost some momentum, however, the Bulls are yet out of their safe zone. For today, the Bulls need to overcome the levels of 5195 on the Nifty to regain their lost grounds, whereas the Bears need to breach the levels of 5085 to maintain their downwards momentum.
2) The Nifty is still trading below all its key EMAs and also below its 100DMA. The 50DMA and the 200DMA stacked up at 5094 and 5101 should be key levels to be watched out for.
3) The stochastics are well and deeply in the oversold zone.
Bears have gained upper hand on the Nifty. They need to defend 5130 for today.Yesterday, in our post "Range-bound consolidation continues", we had expected the Nifty to take support after opening a bit lower and grind into a small range. However, the Nifty chose to open with a big gap down and kept on falling for the entire trading session. A glance at our "Trend identification" guidelines tells us "A Bearish trend is identified by the ability of the Bears to breach Day Lows consistently, without causing much harm to the Day Highs." Part (b) of our plan (b) got triggered immediately on the opening as the Nifty opened below 5165, and as we entered short on the Nifty, we could book a profit of 50 points by the day's end. 1) The Elder Ray readings: Bull Power reduces from +9 to -50 Bear Power rises from -32 to -106 indicating the strength of the stranglehold the Bears have on the Nifty as of now. For today, the Bulls need to overcome the levels of 5155 on the Nifty to regain their lost grounds whereas the Bears need to breach the Nifty below 5095 to maintain their downwards momentum.2) The Nifty is now trading below all its key EMAs and also its 100DMA. It is however, above its 50DMA and 200DMA which are at 5090 and 5099 respectively, and could act as the much needed support.3) The stochastics are now at the oversold zone, but are still pointing downwards.4) In the above chart, the volumes have again depleted in yesterday's fall on the Nifty, indicating that some supports are round the corner. The MACD continues to be in the positive and continues to fall, indicating further room for more downwards movement. The ADX is indicating a rising momentum for the bearish down move. The Parabolic SAR continues with its Sell signal with a SL now at 5271.5) Considering the above, our trading plan for the day is as under.a) Around 5135, we will open fresh short positions with a SL of 5165 and a target of 5090. We will add to these short positions only below 5070.b) Around 5085, 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 5165.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Bears have gained upper hand on the Nifty. They need to defend 5130 for today.
Yesterday, in our post "Range-bound consolidation continues", we had expected the Nifty to take support after opening a bit lower and grind into a small range. However, the Nifty chose to open with a big gap down and kept on falling for the entire trading session. A glance at our "Trend identification" guidelines tells us
"A Bearish trend
is identified by the ability of the Bears to breach Day Lows
consistently, without causing much harm to the Day Highs."
Part (b) of our plan (b) got triggered immediately on the opening as the Nifty opened below 5165, and as we entered short on the Nifty, we could book a profit of 50 points by the day's end.
1) The Elder Ray readings: Bull Power reduces from +9 to -50 Bear Power rises from -32 to -106 indicating the strength of the stranglehold the Bears have on the Nifty as of now. For today, the Bulls need to overcome the levels of 5155 on the Nifty to regain their lost grounds whereas the Bears need to breach the Nifty below 5095 to maintain their downwards momentum.
2) The Nifty is now trading below all its key EMAs and also its 100DMA. It is however, above its 50DMA and 200DMA which are at 5090 and 5099 respectively, and could act as the much needed support.
3) The stochastics are now at the oversold zone, but are still pointing downwards.
Amidst continuous FII buying and weak global cues, Nifty stuck in a grinding range.As discussed on Friday, the Nifty was "Waiting for signal", which we expected after a NR7 trading day. However, the market chose to grind for yet another day, and remained range-bound within a tight range of 40 points. Our plan (a) got triggered and we could scalp 30 points out of this 40 points range gives us a feeling of satisfaction.1) The Elder Ray readings: Bull Power reduces from +24 to +9 Bear Power rises from -1 to -32 indicating that the Bulls and the Bears are in equilibrium forcing the market to be indecisive. For today, the Bulls need to overcome the levels of 5245 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5190 to maintain their downwards momentum.2) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.3) The stochastics are just about to touch the oversold zone and are suggesting that the Nifty might be bottoming out in the short term. 4) In the above chart, the volumes have depleted in Friday's fall on the Nifty indicating lack of force behind the fall. The MACD is in the positive but is falling indicating that some more downside may be there for the Nifty. The ADX is also supportive of a down move, but is indicating loss of momentum for the same. The Parabolic SAR continues with its Sell signal with a SL put at 5289.5) Considering the above, our trading plan for the day is as under.a) Above 5185, we will open fresh long positions with a SL of 5165 and a target of 5235. We will add to these long positions only above 5250.b) Around 5235, we will open fresh short positions with a SL of 5250 and a target of 5190. We will add to these short positions only below 5165.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Amidst continuous FII buying and weak global cues, Nifty stuck in a grinding range.
As discussed on Friday, the Nifty was "Waiting for signal", which we expected after a NR7 trading day. However, the market chose to grind for yet another day, and remained range-bound within a tight range of 40 points. Our plan (a) got triggered and we could scalp 30 points out of this 40 points range gives us a feeling of satisfaction.
1) The Elder Ray readings: Bull Power reduces from +24 to +9 Bear Power rises from -1 to -32 indicating that the Bulls and the Bears are in equilibrium forcing the market to be indecisive. For today, the Bulls need to overcome the levels of 5245 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5190 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
3) The stochastics are just about to touch the oversold zone and are suggesting that the Nifty might be bottoming out in the short term.
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