Seven consecutive days fall post registering a highest high, Nifty at critical supports.
As discussed yesterday, we were expecting "A relief rally may unfold" on the Nifty. Positive global cues and a 24 point gap up opening on the Nifty at 6178 initially supported our view. However, the Bulls could not sustain the Nifty at higher levels, and after making a higher high than previous day at 6191, the Nifty made a lower low than previous day at 6133, before closing at 6139 with a loss of 16 points. We took a trade on the long side and booked out at EOD with a small loss of 8 points.
1) The Elder Ray readings : Bull Power rises from -28 to -10 Bear Power also rises from -65 to -68 indicating that the Bears are still in control of the Nifty. For today, the Bulls need to overcome the levels of 6195 to regain their lost grounds whereas the Bears need to breach the levels of 6120 to maintain their downwards momentum.
2) The stochastics are now approaching the oversold zone.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
As discussed yesterday, we were expecting "A relief rally may unfold" on the Nifty. Positive global cues and a 24 point gap up opening on the Nifty at 6178 initially supported our view. However, the Bulls could not sustain the Nifty at higher levels, and after making a higher high than previous day at 6191, the Nifty made a lower low than previous day at 6133, before closing at 6139 with a loss of 16 points. We took a trade on the long side and booked out at EOD with a small loss of 8 points.
1) The Elder Ray readings : Bull Power rises from -28 to -10 Bear Power also rises from -65 to -68 indicating that the Bears are still in control of the Nifty. For today, the Bulls need to overcome the levels of 6195 to regain their lost grounds whereas the Bears need to breach the levels of 6120 to maintain their downwards momentum.
2) The stochastics are now approaching the oversold zone.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.