As Nifty holds key supports and Bears get some momentum, volatility may rise.
As discussed yesterday, Bulls needed to follow up on their buying spree. However, the Nifty opened with a minor negative gap down, then hurried to fill the gap but met resistance at 6065 and got sold off heavily to breach the 6010 levels before finally closing for the day at 6019, with a loss of 35 points. Our trading plan (a) triggered, did not meet either the SL or the targets, but we were able to scrape a profit of 55 points on two lots traded.
1) The Elder Ray readings : Bull Power reduces from +47 to +43 Bear Power rises from -1 to -14 indicating that with both the Bulls and the Bears in their own territory, volatility may rise now. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the levels of 6005 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and 13EMA, however it has closed above the 21EMA and also above all its key DMAs. Moreover, the EMAs are seen dipping but not stacked inversely yet, indicating that the Bulls may have lost momentum but cannot be counted out as yet.
3) The stochastics are now right in the center of the neutral zone and are pointing downwards.
4) In the chart above, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD is still horizontal but has turned negative now. The ADX is suggesting a rise in the downward momentum and a fall in the upwards momentum but suggests that both Bulls and Bears are in equilibrium now. The Parabolic SAR is now giving out a sell signal with a SL of 6101.
5) Considering the above, our trading plan for the day is as under.
a) Around 6050 we will open fresh short positions with a SL of 6065 and a target of 6000. We will add to these short positions only below 5985.
b) Around 5995 we will open fresh long positions with a SL of 5985 and a target of 6045. We will add to these long positions only above 6065.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, Bulls needed to follow up on their buying spree. However, the Nifty opened with a minor negative gap down, then hurried to fill the gap but met resistance at 6065 and got sold off heavily to breach the 6010 levels before finally closing for the day at 6019, with a loss of 35 points. Our trading plan (a) triggered, did not meet either the SL or the targets, but we were able to scrape a profit of 55 points on two lots traded.
1) The Elder Ray readings : Bull Power reduces from +47 to +43 Bear Power rises from -1 to -14 indicating that with both the Bulls and the Bears in their own territory, volatility may rise now. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the levels of 6005 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and 13EMA, however it has closed above the 21EMA and also above all its key DMAs. Moreover, the EMAs are seen dipping but not stacked inversely yet, indicating that the Bulls may have lost momentum but cannot be counted out as yet.
3) The stochastics are now right in the center of the neutral zone and are pointing downwards.
4) In the chart above, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD is still horizontal but has turned negative now. The ADX is suggesting a rise in the downward momentum and a fall in the upwards momentum but suggests that both Bulls and Bears are in equilibrium now. The Parabolic SAR is now giving out a sell signal with a SL of 6101.
5) Considering the above, our trading plan for the day is as under.
a) Around 6050 we will open fresh short positions with a SL of 6065 and a target of 6000. We will add to these short positions only below 5985.
b) Around 5995 we will open fresh long positions with a SL of 5985 and a target of 6045. We will add to these long positions only above 6065.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Waiting patiently for trading plan(a) either to trigger or may be the bulls will sweep past 6065 in a single swift move, which if happens we will open longs with a 25 points SL.
ReplyDeleteBut waiting for either of the two to happen as of now.
Opened short position by shorting one lot of 6000 CE at 74 with a SL of 6065 NS
ReplyDeleteGot stopped out at 84 (NS touched 6065) loss of 500 bucks booked
ReplyDeletePart b of trading plan (b) got triggered.
ReplyDeleteOpened long position @ 6065 with SL of 6035 and target of 6120.
Carrying over long positions, as we are in profit and Nifty seems to be moving upwards only from now on till expiry.
ReplyDeleteWill square off on the first signs of retreat, if comes to that.