Even after passing the 50DMA test, the Bulls have lost control on Nifty.
As discussed yesterday, the Nifty tested the 50DMA support levels, and stayed above those levels throughout the trading session. The Nifty opened with a negative gap of about 40 points and regained about 10 points by closing above the opening mark. The Nifty now seems to be poised for a bounce back, but this bounce could be short lived, it seems. Our trading plan(a) got triggered, but as the Nifty consolidated in a tight range, we could book only a minor gain of just 3 points by EOD.
1) The Elder Ray readings : Bull Power reduces from +11 to -47 Bear Power rises from -46 to -30 indicating that the Bears are now in the drivers seat and that the Bulls have given up their control on the Nifty. For today, the Bulls need to overcome the levels of 6005 to regain their lost grounds whereas the Bears need to breach the Nifty below 5930 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 well and deep into the oversold zone.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that this fall could be arrested soon. The MACD is growing on the negative side, indicating bearishness on the Nifty. The ADX is also suggesting a rising momentum in favor of the Bears. The Parabolic SAR continues with its sell signal with the SL now at 6103.
5) Considering the above, our trading plan for the day is as under.
a) Around 5985 we will open fresh short positions with a SL of 6005 and a target of 5945. We will add to these short positions only below 5915.
b) Around 5930 we will open fresh long positions with a SL of 5915 and a target of 5965. We will add to these long positions only above 6005.
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 tested the 50DMA support levels, and stayed above those levels throughout the trading session. The Nifty opened with a negative gap of about 40 points and regained about 10 points by closing above the opening mark. The Nifty now seems to be poised for a bounce back, but this bounce could be short lived, it seems. Our trading plan(a) got triggered, but as the Nifty consolidated in a tight range, we could book only a minor gain of just 3 points by EOD.
1) The Elder Ray readings : Bull Power reduces from +11 to -47 Bear Power rises from -46 to -30 indicating that the Bears are now in the drivers seat and that the Bulls have given up their control on the Nifty. For today, the Bulls need to overcome the levels of 6005 to regain their lost grounds whereas the Bears need to breach the Nifty below 5930 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 well and deep into the oversold zone.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that this fall could be arrested soon. The MACD is growing on the negative side, indicating bearishness on the Nifty. The ADX is also suggesting a rising momentum in favor of the Bears. The Parabolic SAR continues with its sell signal with the SL now at 6103.
5) Considering the above, our trading plan for the day is as under.
a) Around 5985 we will open fresh short positions with a SL of 6005 and a target of 5945. We will add to these short positions only below 5915.
b) Around 5930 we will open fresh long positions with a SL of 5915 and a target of 5965. We will add to these long positions only above 6005.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened short position at 5984 as per trading plan (a) with a SL of 6005.
ReplyDeleteSquared off short positions at 5956 with a profit of 28 points as EOD is nearing and cannot wait for target now.
ReplyDelete