Nifty - 23 Nov 2012 - Ready for a big move

Nifty gets squeezed amidst supports & resistances, a big move expected soon.

As discussed yesterday, we saw the volatility increase on the Nifty with the Nifty opening with a positive gap of 15 points then falling back to 5610 regaining again and falling back then crossing the day's high before closing right below the opening mark. This volatility is likely to increase in the days to come and usually a bearish move occurs when volatility increases. Our plan (a) got triggered yesterday, and we could collect a minor profit of 20 points by end of day.

1) The Elder Ray readings : Bull Power rises from -17 to +7 Bear Power reduces from -76 to -28 indicating that now both the Bulls and the Bears are in their respective territories, and a big move may come soon to establish the dominance of either one of them. For today, the Bulls need to overcome the levels of 5645 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5605 to maintain their downwards momentum.

2) The Nifty has closed above its 8EMA (5622) but below its 13EMA and 21EMA. The Nifty has also closed below its 50DMA(5647) but above its 100DMA and 200DMA.

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

 

4) In the above chart the volumes have decreased with the minor rise in the Nifty indicating that this rise may not sustain for long. The MACD is in the negative but has started rising gradually which is indicating of a up move. The ADX is also now suggesting a bias for a up move. The Parabolic SAR continues with its buy signal.

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

a) Around 5600 we will open fresh long positions with a SL of 5585 and a target of 5650. We will add to these long positions only above 5675.

b) Around 5650 we will open fresh short positions with a SL of 5675 and a target of 5615. We will add to these short positions only below 5585.

Happy Trading !!!      

Also visit Just Nifty and the Nifty Range blogs.


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

Nifty - 23 Nov 2012 - Ready for a big move

Nifty gets squeezed amidst supports & resistances, a big move expected soon.

As discussed yesterday, we saw the volatility increase on the Nifty with the Nifty opening with a positive gap of 15 points then falling back to 5610 regaining again and falling back then crossing the day's high before closing right below the opening mark. This volatility is likely to increase in the days to come and usually a bearish move occurs when volatility increases. Our plan (a) got triggered yesterday, and we could collect a minor profit of 20 points by end of day.

1) The Elder Ray readings : Bull Power rises from -17 to +7 Bear Power reduces from -76 to -28 indicating that now both the Bulls and the Bears are in their respective territories, and a big move may come soon to establish the dominance of either one of them. For today, the Bulls need to overcome the levels of 5645 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5605 to maintain their downwards momentum.

2) The Nifty has closed above its 8EMA (5622) but below its 13EMA and 21EMA. The Nifty has also closed below its 50DMA(5647) but above its 100DMA and 200DMA.

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

Nifty - 22 Nov 2012 - Volatility to increase

Nifty approaches key resistances in a downtrend. Expect volatility to rise now.

A couple of days ago we had suggested that Nifty may turn volatile within a range of 5550 and 5650. In the last two days of trading we have witnessed just that with the Nifty ranging between 5620 on the up side and 5548 on the low side. The overall trend still remains bearish and in the undertone Bearish mood still persists until the Bulls are able to close the Nifty above 5650. In yesterday's trade, our plan (a) triggered but did not reach its target nor did the stop loss trigger, and we booked out with a minor loss of 10 points.

1) The Elder Ray readings : Bull Power rises from -27 to -17 Bear Power reduces from -93 to -76 indicating that though the Bears have let off some steam, they are still holding the Bulls out of their territory. For today, the Bulls need to overcome the levels of 5635 to regain their lost grounds whereas the Bears need to breach the levels of 5560 to maintain their downwards momentum.

2) The Nifty has again closed below all its key DMAs which are inversely stacked and also below its 50DMA (5642). However, it has closed above its 100DMA and 200DMA.

3) The stochastics are now out of the oversold zone and are pointing upwards.

 

4)  In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may not sustain. The MACD is still in the negative with the histogram showing a slight rise. The ADX is showing some loss of momentum for the down move, but the downward direction is still the favored direction. The Parabolic SAR continues with its Buy signal with a far away stop loss.

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

a) Around 5640 we will open fresh short positions with a SL of 5660 and a target of 5585. We will add to these short positions only below 5565. 

b) Around 5580 we will open fresh long positions with a SL of 5565 and a target of 5620. We will add to these long positions only above 5660.

Happy Trading !!!    

Also visit Just Nifty and the Nifty Range blogs.


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

Nifty - 22 Nov 2012 - Volatility to increase

Nifty approaches key resistances in a downtrend. Expect volatility to rise now.

A couple of days ago we had suggested that Nifty may turn volatile within a range of 5550 and 5650. In the last two days of trading we have witnessed just that with the Nifty ranging between 5620 on the up side and 5548 on the low side. The overall trend still remains bearish and in the undertone Bearish mood still persists until the Bulls are able to close the Nifty above 5650. In yesterday's trade, our plan (a) triggered but did not reach its target nor did the stop loss trigger, and we booked out with a minor loss of 10 points.

1) The Elder Ray readings : Bull Power rises from -27 to -17 Bear Power reduces from -93 to -76 indicating that though the Bears have let off some steam, they are still holding the Bulls out of their territory. For today, the Bulls need to overcome the levels of 5635 to regain their lost grounds whereas the Bears need to breach the levels of 5560 to maintain their downwards momentum.

2) The Nifty has again closed below all its key DMAs which are inversely stacked and also below its 50DMA (5642). However, it has closed above its 100DMA and 200DMA.

3) The stochastics are now out of the oversold zone and are pointing upwards.

Nifty - 21 Nov 2012 - Bearish mood persists

Nifty continues to drift downwards as the bearish mood persists. 

As discussed yesterday, we saw the Nifty turn volatile as it opened with a positive gap of more than 30 points and then climbing higher into the resistance zone and then giving away all the gains and also breaking previous day's low, only to close with a minor gain of 0.15 point. Our plan (a) hit its target and our plan (b) also yielded a small profit of 20 points.

1) The Elder Ray readings : Bull Power rises from -60 to -27 Bear Power reduces from -103 to -93 indicating that the Bears seem to be exhausted but the Bulls seem not too keen to take advantage yet. For today, the Bulls need to overcome the levels of 5635 to regain their lost grounds whereas the Bears need to breach the levels of 5540 to maintain their downwards momentum.

2) The Nifty continues to close below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.

3) The stochastics are in the oversold zone, but are not pointing upwards yet.

 

4) In the above chart the volumes have increased with the Nifty remaining stagnant, indicating of increased participation and tightening of the trading range. The MACD continues to fall. The ADX is showing some loss of momentum for the Bears but the downward move is still the favored direction. The Parabolic SAR continues to give out its buy signal.

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

a) Around 5605 we will open fresh short positions with a SL of 5625 and a target of 5550. We will add to these short positions only below 5525.

b) Around 5535 we will open fresh long positions with a SL of 5525 and a target of 5575. We will add to these long positions only above 5625.

Happy Trading !!!     

Also visit Just Nifty and the Nifty Range blogs.


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

Nifty - 21 Nov 2012 - Bearish mood persists

Nifty continues to drift downwards as the bearish mood persists. 

As discussed yesterday, we saw the Nifty turn volatile as it opened with a positive gap of more than 30 points and then climbing higher into the resistance zone and then giving away all the gains and also breaking previous day's low, only to close with a minor gain of 0.15 point. Our plan (a) hit its target and our plan (b) also yielded a small profit of 20 points.

1) The Elder Ray readings : Bull Power rises from -60 to -27 Bear Power reduces from -103 to -93 indicating that the Bears seem to be exhausted but the Bulls seem not too keen to take advantage yet. For today, the Bulls need to overcome the levels of 5635 to regain their lost grounds whereas the Bears need to breach the levels of 5540 to maintain their downwards momentum.

2) The Nifty continues to close below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.

3) The stochastics are in the oversold zone, but are not pointing upwards yet.

Nifty - 20 Nov 2012 - Nifty may turn volatile

Nifty being sandwiched in a 100 point trading range may turn volatile.

We are back after a much needed refreshing one week vacation, and today, we will start afresh without any comments on the past week. On the daily charts, the Nifty has turned bearish within a 100 point trading range between 5550 (the rising trend-line support) and 5650 (Gap down resistance of 15th Nov 2012) and we will be trading this range as of now.

1) The Elder Ray readings : Bull Power reduces from -16 to -60 Bear Power also reduces from -106 to -103 indicating that Bears failed to give that final push and Nifty took support at yesterday's lows formed at the rising trend line. For today, the Bulls need to overcome the levels of 5640 on the Nifty to regain their lost grounds whereas the Bears need to breach the Nifty below 5535 to maintain their downwards momentum.

2) The Nifty is now trading below all its key EMAs which are stacked inversely. The Nifty is also trading below its 50DMA (5630) but above its 100DMA and 200DMA.

3) The stochastics are in the oversold zone and are indicating a relief rally at least.

 

4) In the above chart, the volumes have started to deplete with the Nifty falling consistently, indicating that the Nifty is near a crucial support. The MACD has turned negative and the histogram is well below the zero line. The ADX is also suggesting a rise in momentum with a bias towards the Bears. The Parabolic SAR continues with its buy signal with a very far away stop loss.

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

a) Around 5625 we will open fresh short positions with a SL of 5645 and a target of 5570. We will add to these short positions only below 5545.

b) Around 5560 we will open fresh long positions with a SL of 5545 and a target of 5600. We will add to these long positions only above 5645.

Happy Trading !!!  

Also visit Just Nifty and the Nifty Range blogs.


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

Nifty - 20 Nov 2012 - Nifty may turn volatile

Nifty being sandwiched in a 100 point trading range may turn volatile.

We are back after a much needed refreshing one week vacation, and today, we will start afresh without any comments on the past week. On the daily charts, the Nifty has turned bearish within a 100 point trading range between 5550 (the rising trend-line support) and 5650 (Gap down resistance of 15th Nov 2012) and we will be trading this range as of now.

1) The Elder Ray readings : Bull Power reduces from -16 to -60 Bear Power also reduces from -106 to -103 indicating that Bears failed to give that final push and Nifty took support at yesterday's lows formed at the rising trend line. For today, the Bulls need to overcome the levels of 5640 on the Nifty to regain their lost grounds whereas the Bears need to breach the Nifty below 5535 to maintain their downwards momentum.

2) The Nifty is now trading below all its key EMAs which are stacked inversely. The Nifty is also trading below its 50DMA (5630) but above its 100DMA and 200DMA.

3) The stochastics are in the oversold zone and are indicating a relief rally at least.