As Bulls try to regroup, Bears seem to be waiting for the kill. Sell on rise is the mantra.
As discussed yesterday, Nifty has got range bound, with the Nifty after a flattish opening, traded in a narrow band for almost the entire session, failed to breach the previous day's lows, and in the last hour, tried to breakout, by overcoming the previous day's highs and closing just below 5925, the resistance level identified by us. Our trading plan (a) got triggered very very late in the day, and we did not venture into taking that trade so late in the day.
1) The Elder Ray readings : Bull Power rises from -49 to -38 Bear Power reduces from -94 to -79 indicating that the Bulls are trying to regroup and that the Bears are waiting for a bigger chance without giving away too much. For today, the Bulls need to overcome the levels of 5955 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5880 to maintain their downwards momentum.
2) The Nifty continues to close below all its key EMAs and also below its 50DMA (5961). However it has closed above its 100DMA and 200DMA.
3) The stochastics are still in the oversold zone and are showing the first and initial indications of a bounce back possibility.
4) In the above chart, the volumes have decreased indicating that the bounce may be short lived. The MACD is still in the negative, but is showing signs of recovery. The ADX is also showing a loss of momentum for the Bears, but still favors the down move. The Parabolic SAR continues with its sell signal with the SL now at 6028.
5) Considering the above, our trading plan for the day is as under.
a) Around 5945 we will open fresh short positions with a SL of 5965 and a target of 5895. We will add to these short positions only below 5880.
b) Around 5890 we will open fresh long positions with a SL of 5880 and a target of 5920. We will add to these long positions only above 5965.
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, Nifty has got range bound, with the Nifty after a flattish opening, traded in a narrow band for almost the entire session, failed to breach the previous day's lows, and in the last hour, tried to breakout, by overcoming the previous day's highs and closing just below 5925, the resistance level identified by us. Our trading plan (a) got triggered very very late in the day, and we did not venture into taking that trade so late in the day.
1) The Elder Ray readings : Bull Power rises from -49 to -38 Bear Power reduces from -94 to -79 indicating that the Bulls are trying to regroup and that the Bears are waiting for a bigger chance without giving away too much. For today, the Bulls need to overcome the levels of 5955 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5880 to maintain their downwards momentum.
2) The Nifty continues to close below all its key EMAs and also below its 50DMA (5961). However it has closed above its 100DMA and 200DMA.
3) The stochastics are still in the oversold zone and are showing the first and initial indications of a bounce back possibility.
4) In the above chart, the volumes have decreased indicating that the bounce may be short lived. The MACD is still in the negative, but is showing signs of recovery. The ADX is also showing a loss of momentum for the Bears, but still favors the down move. The Parabolic SAR continues with its sell signal with the SL now at 6028.
5) Considering the above, our trading plan for the day is as under.
a) Around 5945 we will open fresh short positions with a SL of 5965 and a target of 5895. We will add to these short positions only below 5880.
b) Around 5890 we will open fresh long positions with a SL of 5880 and a target of 5920. We will add to these long positions only above 5965.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) triggered right at the opening mark. Opened fresh short positions with a SL of 5965 and a target of 5895.
ReplyDeleteSL Hit at 5965 booked loss of 20 points.
ReplyDeleteTaking fresh aggressive short positions at 5965 with a SL of 5980, as advance declines getting into favor of bears and nifty seems to stall at these levels
ReplyDeleteCovered shorts at 5925 booking a profit of 40 points.
ReplyDeleteToday's trades
1st trade loss of 20 points.
2nd trade profit of 40 points.
Total 20 points gain