As Nifty gets ready for a 50DMA test, Bulls have yet another chance to save grace.
As discussed yesterday, the Nifty after resorting to key support levels, had bounced back on the previous day. Yesterday, supported by positive global cues, the Nifty opened with a smart positive gap up of 26 points and ran into our suggested resistance zone at 6030. The Nifty made a high of 6039 and then got sold off, with the down move getting accelerated in the afternoon. The day's low missed our target of 5980 by a whisker. Our trading plan(a) got triggered and we could book a comfortable profit of 38 points by the end of the day.
1) The Elder Ray readings : Bull Power reduces from +19 to +11 Bear Power also reduces from -51 to -46 indicating that the Bulls have survived the carnage as yet. For today, the Bulls need to overcome the levels of 6040 to maintain their upwards momentum whereas the Bears need to breach the levels of 5975 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs but has closed above all its key DMAs. Also to be noted is that the 8EMA is now below the 13EMA which is a sign of danger for the Bulls.
3) The fast stochastics are well into the oversold zone followed closely by the slow stochastics, giving credence to a bullish bounce back for once.
4) In the above chart, the volumes have stagnated while the Nifty fell yesterday, indicating that the down move may get arrested. The MACD is now well in the negative favoring the down move. The ADX is favoring the Bears but suggesting a loss of momentum for them. The Parabolic SAR continues with its sell signal with a SL at 6109.
5) Considering the above, our trading plan for the day is as under.
a) Above 5955, we will open fresh long positions with a SL of 5940 and a target of 6015. We will add to these long positions only above 6030.
b) Around 6020, we will open fresh short positions with a SL of 6030 and a target of 5990. We will add to these short positions only below 5940.
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, the Nifty after resorting to key support levels, had bounced back on the previous day. Yesterday, supported by positive global cues, the Nifty opened with a smart positive gap up of 26 points and ran into our suggested resistance zone at 6030. The Nifty made a high of 6039 and then got sold off, with the down move getting accelerated in the afternoon. The day's low missed our target of 5980 by a whisker. Our trading plan(a) got triggered and we could book a comfortable profit of 38 points by the end of the day.
1) The Elder Ray readings : Bull Power reduces from +19 to +11 Bear Power also reduces from -51 to -46 indicating that the Bulls have survived the carnage as yet. For today, the Bulls need to overcome the levels of 6040 to maintain their upwards momentum whereas the Bears need to breach the levels of 5975 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs but has closed above all its key DMAs. Also to be noted is that the 8EMA is now below the 13EMA which is a sign of danger for the Bulls.
3) The fast stochastics are well into the oversold zone followed closely by the slow stochastics, giving credence to a bullish bounce back for once.
4) In the above chart, the volumes have stagnated while the Nifty fell yesterday, indicating that the down move may get arrested. The MACD is now well in the negative favoring the down move. The ADX is favoring the Bears but suggesting a loss of momentum for them. The Parabolic SAR continues with its sell signal with a SL at 6109.
5) Considering the above, our trading plan for the day is as under.
a) Above 5955, we will open fresh long positions with a SL of 5940 and a target of 6015. We will add to these long positions only above 6030.
b) Around 6020, we will open fresh short positions with a SL of 6030 and a target of 5990. We will add to these short positions only below 5940.
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 long position as per trading plan(a) at 5958 as the Nifty moves above 5955 in the opening trades. The SL for this trade is 5940 and target is 6015.
ReplyDeleteSquared off long position at 5961 with a small profit of 3 points as EOD is nearing now.
ReplyDelete