Nifty comes back into trading zone, as Bulls fritter away their advantage.
As discussed yesterday, it turned out to be sell on rise on the Nifty in yesterday's trading session. The Nifty opened with a positive gap of 21 points and then traded smartly in the morning session, making a high of just under 5970, before getting sold off again, breached the open low mark, made a low of 5923, before closing at 5933, retaining just 10 points of the gains. Our trading plan (a) got triggered right in the morning and hit the SL making us lose 20 points in that trade. However, one more aggressive trade on the short side, gained us 40 points, as we ended the day with a 20 points nett gain.
1) The Elder Ray readings : Bull Power rises from -38 to +9 Bear Power reduces from -79 to -38 indicating that both the Bulls and the Bears now have a fair chance to drive the Nifty in their favor. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5915 to retain their downwards momentum.
2) The Nifty has closed yet again below all its key EMAs and also below its 50DMA (5962). However, it has closed above its 100DMA and 200DMA.
3) The stochastics are hovering on the borderline of the oversold zone now.
4) In the above chart, the volumes have increased with a small rise in the Nifty, indicating that the fall may have been arrested for now. The MACD is showing recovery from the negative zone. The ADX is now showing equilibrium for both the Bulls and the Bears. The Parabolic SAR continues with its sell signal with a SL of 6010.
5) Considering the above, our trading plan for the day is as under.
a) Around 5960 we will open fresh short positions with a SL of 5975 and a target of 5920. We will add to these short positions only below 5890.
b) Around 5905 we will open fresh long positions with a SL of 5890 and a target of 5945. We will add to these long positions only above 5975.
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, it turned out to be sell on rise on the Nifty in yesterday's trading session. The Nifty opened with a positive gap of 21 points and then traded smartly in the morning session, making a high of just under 5970, before getting sold off again, breached the open low mark, made a low of 5923, before closing at 5933, retaining just 10 points of the gains. Our trading plan (a) got triggered right in the morning and hit the SL making us lose 20 points in that trade. However, one more aggressive trade on the short side, gained us 40 points, as we ended the day with a 20 points nett gain.
1) The Elder Ray readings : Bull Power rises from -38 to +9 Bear Power reduces from -79 to -38 indicating that both the Bulls and the Bears now have a fair chance to drive the Nifty in their favor. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5915 to retain their downwards momentum.
2) The Nifty has closed yet again below all its key EMAs and also below its 50DMA (5962). However, it has closed above its 100DMA and 200DMA.
3) The stochastics are hovering on the borderline of the oversold zone now.
4) In the above chart, the volumes have increased with a small rise in the Nifty, indicating that the fall may have been arrested for now. The MACD is showing recovery from the negative zone. The ADX is now showing equilibrium for both the Bulls and the Bears. The Parabolic SAR continues with its sell signal with a SL of 6010.
5) Considering the above, our trading plan for the day is as under.
a) Around 5960 we will open fresh short positions with a SL of 5975 and a target of 5920. We will add to these short positions only below 5890.
b) Around 5905 we will open fresh long positions with a SL of 5890 and a target of 5945. We will add to these long positions only above 5975.
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 positions @ 5904 with a SL @5890 as per trading plan (b)
ReplyDeleteSquared off long positions with a quick profit of 18 points at 5922.
ReplyDeleteDecided to square off as this trade was taken counter trend, based on the strong negative ADX and advance decline ratio favoring a down move.
Nifty seems to getting ready for a collapse in the last hour or trade.
ReplyDeleteExpecting it to sweep past our trading plan(b) stop loss level of 5890 swiftly.
Will not take trade on the long side even if trading plan(b) triggers once more now.