Nifty - 31 Aug 2012 - Series to start with a trading mode

Nifty enters a trading mode at the start of the Sept. series. Sell on rise. Buy on dips.

As discussed yesterday, we saw expiry jitters on the Nifty, with the roll over pressure taking the Nifty up to 5340 in the last 40 minutes of trade, before settling at 5315. Earlier the Nifty was subdued throughout the trading session and touched a low of 5255, which could become a major support for days to come.

1) The Elder Ray readings : Bull Power rises from +3 to +5 Bear Power also rises from -59 to -83, confirming that the Nifty has entered a trading mode. For today, the Bulls need to surpass 5345 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5250 to maintain their downwards momentum.

2) The Nifty has closed below all its key EMAs and all its key DMAs.

3) The stochastics are in the oversold zone and are looking to rise.

 

4) In the above chart, the volumes have increased exceptionally with the rise in the Nifty, indicating that Nifty is at strong supports. However, the MACD is pointing downwards, with the Histogram getting more negative. The ADX is also favoring the Bears, and the Parabolic SAR continues its sell signal with a SL of 5428.

5) Considering the above, our trading plan for the day is as under

a) Around 5290, we will open fresh long positions with a SL of 5265 and a target of 5340. We will add to these long positions only above 5375,

b) Around 5355, we will open fresh short positions with a SL of 5370 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

Nifty - 31 Aug 2012 - Series to start with a trading mode

Nifty enters a trading mode at the start of the Sept. series. Sell on rise. Buy on dips.

As discussed yesterday, we saw expiry jitters on the Nifty, with the roll over pressure taking the Nifty up to 5340 in the last 40 minutes of trade, before settling at 5315. Earlier the Nifty was subdued throughout the trading session and touched a low of 5255, which could become a major support for days to come.

1) The Elder Ray readings : Bull Power rises from +3 to +5 Bear Power also rises from -59 to -83, confirming that the Nifty has entered a trading mode. For today, the Bulls need to surpass 5345 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5250 to maintain their downwards momentum.

2) The Nifty has closed below all its key EMAs and all its key DMAs.

3) The stochastics are in the oversold zone and are looking to rise.

Nifty - 30 Aug 2012 - Expiry Jitters

With the series expiry today, the downmove on the Nifty may continue unabated.

As discussed yesterday, the downmove continued on the Nifty, inspite of the Nifty opening with a minor up gap of 7 points. Right from the word go, the Nifty started to drift downwards and swiftly broke the support levels of 5305, where it was clear that the Bears would be able to sustain their downwards momentum. The Nifty closed with a loss of 47 points finally. Our plan (a) did not trigger at all and our plan (b) got triggered and hit the SL as we booked a 10 points loss.

1) The Elder Ray readings : Bull Power reduces from +8 to +3 Bear Power rises from -38 to -59, indicating that the Bears are gaining momentum very fast now. 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 5275 to maintain their downwards momentum.

2) The Nifty has now closed below all its key EMAs but is above all its key DMAs.

3) The stochastics are touching the oversold zone now.

 

4) In the above chart the volumes have sustained with the fall in the Nifty, indicating the possibility of the downmove continuing. The MACD has now given out a clear negative divergence, and the histogram is also in the negative. The ADX is also suggesting the rising momentum for the Bearish downmove. The Parabolic SAR continues with its sell signal with a stop at 5439.

5) Considering the above, our trading plan for the day is as under.

a) Around 5305, we will open fresh short positions with a SL of 5325 and a target of 5255. We will add to these short positions only below 5245.

b) For today, we will not be looking out to open any long positions at any levels.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 30 Aug 2012 - Expiry Jitters

With the series expiry today, the downmove on the Nifty may continue unabated.

As discussed yesterday, the downmove continued on the Nifty, inspite of the Nifty opening with a minor up gap of 7 points. Right from the word go, the Nifty started to drift downwards and swiftly broke the support levels of 5305, where it was clear that the Bears would be able to sustain their downwards momentum. The Nifty closed with a loss of 47 points finally. Our plan (a) did not trigger at all and our plan (b) got triggered and hit the SL as we booked a 10 points loss.

1) The Elder Ray readings : Bull Power reduces from +8 to +3 Bear Power rises from -38 to -59, indicating that the Bears are gaining momentum very fast now. 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 5275 to maintain their downwards momentum.

2) The Nifty has now closed below all its key EMAs but is above all its key DMAs.

3) The stochastics are touching the oversold zone now.

Nifty - 29 Aug 2012 - Downmove continues

Nifty continues to move down on lack of buying support. 5300 level critical.

As discussed yesterday, "Bulls lose momentum" appeared to be the fact of the day during the entire trading session, as the Nifty opened with a minor gap down (just about 2 points) and then traded in the red for almost the entire session. The Nifty clocked a low of 5313 before closing with a loss of about 15 points. Our plan (a) could not trigger, however it attained its target. Our plan (b) got triggered and we could book a profit of 20 points by end of the trading session.

1) The Elder Ray readings : Bull Power reduces from +45 to +8 Bear Power rises from -7 to -38, indicating that the Bears are gaining momentum now. For today, the Bulls need to take the Nifty above 5365 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5305 to maintain their downwards momentum.

2) The Nifty has closed below its 8EMA and 13EMA. However, it has closed above its 21EMA and above all its key DMAs. This indicates that all is not lost yet for the Bulls.

3) The stochastics are in the neutral zone and are pointing downwards.

 

4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the downmove may sustain now. The MACD has turned decisively downwards, with the Histogram turning negative. The ADX is also now favoring the Bears, with the Parabolic SAR continuing with its sell signal with a SL of 5446.

5) Considering the above, our trading plan for the day is as under.

a) Around 5360 we will open fresh short positions with a SL of 5375 and a target of 5310. We will add to these short positions only below 5290.

 b) Around 5300 we will open fresh long positions with a SL of 5290 and a target of 5340. We will add to these long positions only above 5375.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 29 Aug 2012 - Downmove continues

Nifty continues to move down on lack of buying support. 5300 level critical.

As discussed yesterday, "Bulls lose momentum" appeared to be the fact of the day during the entire trading session, as the Nifty opened with a minor gap down (just about 2 points) and then traded in the red for almost the entire session. The Nifty clocked a low of 5313 before closing with a loss of about 15 points. Our plan (a) could not trigger, however it attained its target. Our plan (b) got triggered and we could book a profit of 20 points by end of the trading session.

1) The Elder Ray readings : Bull Power reduces from +45 to +8 Bear Power rises from -7 to -38, indicating that the Bears are gaining momentum now. For today, the Bulls need to take the Nifty above 5365 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5305 to maintain their downwards momentum.

2) The Nifty has closed below its 8EMA and 13EMA. However, it has closed above its 21EMA and above all its key DMAs. This indicates that all is not lost yet for the Bulls.

3) The stochastics are in the neutral zone and are pointing downwards.

Nifty - 28 Aug 2012 - Bulls lose momentum

As we approach expiry, Bulls lose momentum. Bears still need to press hard.

Yesterday, we were out of the market due to some personal commitments, and it seems we were lucky on that front. The Bulls clearly lost momentum in yesterday's trade and now it would be interesting to watch out how the Bears use this opportunity to their advantage, or whether the Bulls are successful in yet again defending 5300 before expiry.

1) The Elder Ray readings : Bull Power remains stagnant at +45 Bear Power rises from +17 to -7, indicating that the Bears have now regained their lost grounds, however, the Bulls look still in control. For today, the Bulls need to overcome the levels of 5400 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5340 to maintain their downwards momentum.

2) The Nifty has now closed below its 8EMA and 13EMA, however, it has closed above its 21EMA (@5323 and above all its key DMAs.

3) The stochastics are now out of the overbought zone and are pointing downwards.

 

4) In the above charts, the volumes have decreased in yesterday's fall on the Nifty, which indicates that the fall was due to lack of buying rather than pressure of selling. The MACD is about to give a negative divergence, indicating that a major down move may be lurking round the corner. The ADX is also suggesting a fall in momentum for the Bulls and a rise in momentum for the Bears, however, the overall momentum is reducing as per the ADX, indicating that the move could turn out to be range bound. The Parabolic SAR has now turned into a Sell signal with a SL of 5449.

5) Considering the above, our trading plan for the day is as under.

a) Around 5380, we will open fresh short positions with a SL of 5395 and a target of 5325. We will add to these short positions only below 5305.

b) Around 5320, we will open fresh long positions with a SL of 5305 and a target of 5360. We will add to these long positions only above 5395.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 28 Aug 2012 - Bulls lose momentum

As we approach expiry, Bulls lose momentum. Bears still need to press hard.

Yesterday, we were out of the market due to some personal commitments, and it seems we were lucky on that front. The Bulls clearly lost momentum in yesterday's trade and now it would be interesting to watch out how the Bears use this opportunity to their advantage, or whether the Bulls are successful in yet again defending 5300 before expiry.

1) The Elder Ray readings : Bull Power remains stagnant at +45 Bear Power rises from +17 to -7, indicating that the Bears have now regained their lost grounds, however, the Bulls look still in control. For today, the Bulls need to overcome the levels of 5400 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5340 to maintain their downwards momentum.

2) The Nifty has now closed below its 8EMA and 13EMA, however, it has closed above its 21EMA (@5323 and above all its key DMAs.

3) The stochastics are now out of the overbought zone and are pointing downwards.