Bears have regained their footing, as Nifty tests key supports. Bulls need to act fast.
During the past two trading sessions, which have been quite fruifull for the Bears, we have been on a mini vacation. The Bears have hammered the Nifty from 6056 to 5999 during these two sessions, and have thus, regained their footing, and now the onus is on the Bulls to act fast and regain their control of the Nifty. The silver lining for the Bulls is that the Nifty is resting on key support levels.
1) The Elder Ray readings : Bull Power rises from +18 to +19 Bear Power also rises from -15 to -51, indicating that now the Bears are not only into their own territory, they are stronger than the Bulls. For today, the Bulls need to overcome the levels of 6055 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5975 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that this down-move may get arrested soon. The MACD is now giving a clear negative signal. The ADX is favoring the Bears but suggesting lowering of the overall Nifty momentum. The Parabolic SAR is giving out a sell signal with a SL at 6112.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030, we will open fresh short positions with a SL of 6040 and a target of 5980. We will add to these short positions only below 5955.
b) Around 5965, we will open fresh long positions with a SL of 5955 and a target of 6015. We will add to these long positions only above 6040.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
During the past two trading sessions, which have been quite fruifull for the Bears, we have been on a mini vacation. The Bears have hammered the Nifty from 6056 to 5999 during these two sessions, and have thus, regained their footing, and now the onus is on the Bulls to act fast and regain their control of the Nifty. The silver lining for the Bulls is that the Nifty is resting on key support levels.
1) The Elder Ray readings : Bull Power rises from +18 to +19 Bear Power also rises from -15 to -51, indicating that now the Bears are not only into their own territory, they are stronger than the Bulls. For today, the Bulls need to overcome the levels of 6055 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5975 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that this down-move may get arrested soon. The MACD is now giving a clear negative signal. The ADX is favoring the Bears but suggesting lowering of the overall Nifty momentum. The Parabolic SAR is giving out a sell signal with a SL at 6112.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030, we will open fresh short positions with a SL of 6040 and a target of 5980. We will add to these short positions only below 5955.
b) Around 5965, we will open fresh long positions with a SL of 5955 and a target of 6015. We will add to these long positions only above 6040.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh shorts at 6028 as per trading plan (a) with a SL of 6040.
ReplyDeleteMoved trailing stop loss to 6000 nifty spot, thus locking min. 28 points profit for today.
ReplyDeletemoved trailing SL to 5990 now. Nifty spot nearing our target of 5980. Made a low of 5981.25 already.
ReplyDeleteTSL hit at 5990. Profit booked 38 points.
ReplyDelete