Bulls falter to regroup. Bears take advantage and tighten the noose on the Nifty.
As discussed yesterday, the Bulls regrouped, and then faltered, yet again. The Nifty opened flat and traded in a narrow band for most of the day. However, late in the trading session, the Bears took the advantage of Bulls failing to regroup, and breached the Nifty below 5900 to close at 5997 before making a low of 5884. Overall, this looks like a major bearish set up for the Nifty. Time will tell how it unfolds. Our trading plan(b) got triggered, and we could book a quick 18 point profit, against the trend.
1) The Elder Ray readings : Bull Power reduces from +9 to -12 Bear Power rises from -38 to -67 indicating that the Bears are now in the driver's seat. For today, the Bulls need to overcome the levels of 5950 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.
2) The Nifty has again closed below all its key EMAs and also its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The stochastics are back in the oversold zone, and when read along with the ADX, they confirm the downtrend more than they suggest a bounce back.
4) In the above chart, the volumes have increased with the fall in the Nifty, suggesting that this fall may sustain. The MACD is still in the negative and has restarted its fall. The ADX is now suggesting a strong favor towards the Bears. The Parabolic SAR continues with its sell signal with a SL now pegged at 5995.
5) Considering the above, our trading plan for the day is as under.
a) Around 5920 we will open fresh short positions with a SL of 5935 and a target of 5880. We will add to these short positions only below 5855.
b) Around 5865 we will open fresh long positions with a SL of 5855 and a target of 5905. We will add to these long positions only above 5935.
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 Bulls regrouped, and then faltered, yet again. The Nifty opened flat and traded in a narrow band for most of the day. However, late in the trading session, the Bears took the advantage of Bulls failing to regroup, and breached the Nifty below 5900 to close at 5997 before making a low of 5884. Overall, this looks like a major bearish set up for the Nifty. Time will tell how it unfolds. Our trading plan(b) got triggered, and we could book a quick 18 point profit, against the trend.
1) The Elder Ray readings : Bull Power reduces from +9 to -12 Bear Power rises from -38 to -67 indicating that the Bears are now in the driver's seat. For today, the Bulls need to overcome the levels of 5950 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.
2) The Nifty has again closed below all its key EMAs and also its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The stochastics are back in the oversold zone, and when read along with the ADX, they confirm the downtrend more than they suggest a bounce back.
4) In the above chart, the volumes have increased with the fall in the Nifty, suggesting that this fall may sustain. The MACD is still in the negative and has restarted its fall. The ADX is now suggesting a strong favor towards the Bears. The Parabolic SAR continues with its sell signal with a SL now pegged at 5995.
5) Considering the above, our trading plan for the day is as under.
a) Around 5920 we will open fresh short positions with a SL of 5935 and a target of 5880. We will add to these short positions only below 5855.
b) Around 5865 we will open fresh long positions with a SL of 5855 and a target of 5905. We will add to these long positions only above 5935.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened conservative long position as per trading plan(b) at 5870 with a SL of 5855.
ReplyDeletefor starters what lots one can pick in nifty
ReplyDeleteright now i dont want any big positions
i have just opened acc with icicidirect
i have some experience in stocks
this brokerage 2 lots are taradeble for about 35k margin
any guidance will be appreciated
amit
amitk201144@yahoo.com
Amit,
DeleteICICIDirect is one of the costliest brokerage around. You should keep this in mind.
You should initially trade in just one lot of Nifty and observe strict stop loss levels.
Also to start with, you should trade in the direction of the major trend and wait patiently for your entry levels.
SL hit at 5855. Booked loss of 15 points.
ReplyDelete