Bulls take away control of the Nifty just as Bears regain their footing. Tricky terrain.As discussed yesterday, we saw range bound volatility on the Nifty in the first half of the trading session, with the Nifty touching the lows of around 5640 thrice before the Bulls charged back and took away the Nifty past 5700 to close at 5708 with a gain of 56 points. Our plan (b) got triggered and we could book a profit of 65 points as our targets also got achieved.1) The Elder Ray readings : Bull Power rises from +19 to +47 Bear Power also rises from -21 to -37 indicative of the tricky terrain that the Nifty has entered in. For today, the Bulls need to overcome the levels of 5730 on the Nifty to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5670 to maintain their downwards momentum.2) The Nifty has again managed to close above all its key EMAs and also above all its key DMAs.3) The stochastics are still in the overbought zone. 4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move can sustain. The MACD is still showing a downwards trend with the histogram being in the negative. The ADX is again showing some gain in momentum for the up trend. The Parabolic SAR continues with its sell signal with the SL at 5761.5) Considering the above, our trading plan for the day is as under.a) Around 5685 we will open fresh long positions with a SL of 5665 and a target of 5750. We will add to these long positions only above 5780.b) Around 5765 we will open fresh short positions with a SL of 5780 and a target of 5690. We will add to these short positions only below 5665.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Bulls take away control of the Nifty just as Bears regain their footing. Tricky terrain.
As discussed yesterday, we saw range bound volatility on the Nifty in the first half of the trading session, with the Nifty touching the lows of around 5640 thrice before the Bulls charged back and took away the Nifty past 5700 to close at 5708 with a gain of 56 points. Our plan (b) got triggered and we could book a profit of 65 points as our targets also got achieved.
1) The Elder Ray readings : Bull Power rises from +19 to +47 Bear Power also rises from -21 to -37 indicative of the tricky terrain that the Nifty has entered in. For today, the Bulls need to overcome the levels of 5730 on the Nifty to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5670 to maintain their downwards momentum.
2) The Nifty has again managed to close above all its key EMAs and also above all its key DMAs.
3) The stochastics are still in the overbought zone.
The Bears are gaining strength, the Nifty is at crucial supports. Expect volatility.As discussed yesterday, we saw a volatile day on the trading bourses yesterday. The Nifty gyrated wildly within a 25 point range after opening 33 points lower and closing with a loss of 52 points. Our trading plan (a) got triggered at the opening of the market and we were able to book a minor profit of 20 points.1) The Elder Ray readings : Bull Power reduces from +58 to +19 Bear Power rises from +7 to -21 indicating that the Bears have now regained their lost grounds and both the Bears and the Bulls are equidistant in their respective zones. For today, the Bulls need to take the Nifty above 5695 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5640 to maintain their downwards momentum.2) The Nifty has closed below its 8EMA and 13EMA but is above its 21EMA (5618) and is also above all its key DMAs.3) The stochastics are still in the overbought zone, indicating that the Bulls are still holding the upper hand.4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that a short term bottom may be in the making now. The MACD has turned negative with the histogram also turning negative, indicating that the down move may continue for a while. The ADX is also suggesting that the momentum for the up move is reducing and that the momentum for the down move is increasing. The Parabolic SAR continues with its sell signal with a SL of 5779.5) Considering the above, our trading plan for the day is as under.a) Around 5705 we will open fresh short positions with a SL of 5730 and a target of 5650. We will add to these short positions only below 5620.b) Around 5630 we will open fresh long positions with a SL of 5620 and a target of 5680. We will add to these long positions only above 5730.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
The Bears are gaining strength, the Nifty is at crucial supports. Expect volatility.
As discussed yesterday, we saw a volatile day on the trading bourses yesterday. The Nifty gyrated wildly within a 25 point range after opening 33 points lower and closing with a loss of 52 points. Our trading plan (a) got triggered at the opening of the market and we were able to book a minor profit of 20 points.
1) The Elder Ray readings : Bull Power reduces from +58 to +19 Bear Power rises from +7 to -21 indicating that the Bears have now regained their lost grounds and both the Bears and the Bulls are equidistant in their respective zones. For today, the Bulls need to take the Nifty above 5695 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5640 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and 13EMA but is above its 21EMA (5618) and is also above all its key DMAs.
3) The stochastics are still in the overbought zone, indicating that the Bulls are still holding the upper hand.
As the Bulls and Bears grapple for control of Nifty, volatility may rise for short term.As discussed yesterday, the Nifty came back to trading mode and as expected we saw a range bound volatile trading session. The Nifty saw a 'Inside Day', meaning that the Nifty traded within the previous day's highs and lows for the entire trading session. Our plan (a) got triggered at the start of the trading session, and we could book a profit of 35 points twice in the day.1) The Elder Ray readings : Bull Power reduces from +87 to +58 Bear Power also reduces from +1 to +7 indicative of the inside day trades that we had yesterday. For today, the Bulls need to take the Nifty over 5735 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5675 to regain their lost grounds.2) The Nifty has managed to close above all its key EMAs and also above all its key DMAs.3) The stochastics are still in the overbought zone. 4) In the above chart, the volumes have decreased with the Nifty going nowhere, indicating the lack of participation and lack of direction on the Nifty. The MACD is showing weakening of the up move, which is also indicated by the ADX. The Parabolic SAR is continuing with its sell signal with the SL at 5797.5) Considering the above, our trading plan for the day is as under.a) Around 5675 we will open fresh long positions with a SL of 5650 and a target of 5725. We will add to these long positions only above 5755.b) Around 5740 we will open fresh short positions with a SL of 5755 and a target of 5685. We will add to these short positions only below 5650.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
As the Bulls and Bears grapple for control of Nifty, volatility may rise for short term.
As discussed yesterday, the Nifty came back to trading mode and as expected we saw a range bound volatile trading session. The Nifty saw a 'Inside Day', meaning that the Nifty traded within the previous day's highs and lows for the entire trading session. Our plan (a) got triggered at the start of the trading session, and we could book a profit of 35 points twice in the day.
1) The Elder Ray readings : Bull Power reduces from +87 to +58 Bear Power also reduces from +1 to +7 indicative of the inside day trades that we had yesterday. For today, the Bulls need to take the Nifty over 5735 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5675 to regain their lost grounds.
2) The Nifty has managed to close above all its key EMAs and also above all its key DMAs.
3) The stochastics are still in the overbought zone.
Bears have managed to pull the Nifty back into its trading range. Volatility expected.As discussed yesterday, we did well to stay aside for a day, as the Nifty although opening with a minor positive gap up, gave away all the gains and closed well below the 5700 mark at 5676 with a daily loss of 71 points. This brings the Nifty back into a trading mode, where we buy the dips and sell the rises.1) The Elder Ray readings : Bull Power reduces from +158 to +87 Bear Power rises from +102 to +1 indicating that the Bears have managed to wipe out most of their disadvantage, however they are still in the opponents territory. For today, the Bulls need to take the Nifty above 5760 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5665 to regain their lost grounds.2) The Nifty has now closed below its 8EMA (5706) but has closed above its 13EMA (5663) and the 21EMA (5598) and also above all its key DMAs.3) The stochastics are yet in the overbought zone. 4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the down move may not last long. The MACD is still in the positive, but is declining indicating that a down move is currently on. The ADX is suggesting a reduction in momentum, but is still favoring the Bulls. The Parabolic SAR has now started a sell signal with the SL at 5815.5) Considering the above, our trading plan for the day is as under.a) Around 5725 we will open fresh short positions with a SL of 5745 and a target of 5650. We will add to these short positions only below 5595.b) Around 5625 we will open fresh long positions with a SL of 5595 and a target of 5700. We will add to these long positions only above 5745.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Bears have managed to pull the Nifty back into its trading range. Volatility expected.
As discussed yesterday, we did well to stay aside for a day, as the Nifty although opening with a minor positive gap up, gave away all the gains and closed well below the 5700 mark at 5676 with a daily loss of 71 points. This brings the Nifty back into a trading mode, where we buy the dips and sell the rises.
1) The Elder Ray readings : Bull Power reduces from +158 to +87 Bear Power rises from +102 to +1 indicating that the Bears have managed to wipe out most of their disadvantage, however they are still in the opponents territory. For today, the Bulls need to take the Nifty above 5760 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5665 to regain their lost grounds.
2) The Nifty has now closed below its 8EMA (5706) but has closed above its 13EMA (5663) and the 21EMA (5598) and also above all its key DMAs.
3) The stochastics are yet in the overbought zone.
The Nifty gets a shock on one trading error. It is best to wait out for a day.As discussed on Friday, we expected the Nifty to be up up and away. The Nifty started off well and we expected it to carry on mounting higher, however, one trading error ( One basket order of sell at market ) not only shattered all the technicals on the Nifty, it may have also did some damage to the underlying sentiment. However, at the EOD the Nifty seemed to gather some semblance, and closed at 5747 with a loss of 41 points. We would like to ignore the technicals for a day, and let them thrash out themselves during today's trading session, and then move onwards.We are taking a day off from trading today. However, we are carrying on with our positional longs until the Nifty looks like closing below 5700 today.Happy Trading !!!Also follow JustNifty and NiftyRange blogs for more action on the Nifty. For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty gets a shock on one trading error. It is best to wait out for a day.
As discussed on Friday, we expected the Nifty to be up up and away. The Nifty started off well and we expected it to carry on mounting higher, however, one trading error ( One basket order of sell at market ) not only shattered all the technicals on the Nifty, it may have also did some damage to the underlying sentiment. However, at the EOD the Nifty seemed to gather some semblance, and closed at 5747 with a loss of 41 points.
We would like to ignore the technicals for a day, and let them thrash out themselves during today's trading session, and then move onwards.
We are taking a day off from trading today. However, we are carrying on with our positional longs until the Nifty looks like closing below 5700 today.
Happy Trading !!!
Also follow JustNifty and NiftyRange blogs for more action on the Nifty.
For cash market recommendations see our Daily Pre Market calls on NSE
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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.
