Nifty continues to move down, even as Bulls fail in late attempt to recovery.
As discussed on Friday, the Bears continued to tighten the noose on the Nifty, and opened it with a down gap of 27 points and made a lower low at 5854. The Bulls attempt at a late hour recovery on the Nifty, fizzled out at 5900 and the Nifty closed at 5887 with a loss of 10 points. Our trading plan (b) which was aimed at this attempt to recovery, got triggered and hit its stop loss before the rise came in. We had to book a loss of 15 points.
1) The Elder Ray readings : Bull Power reduces from -12 to -43 Bear Power rises from -67 to -89 indicating that the Bears are now firmly in the driver's seat as the Nifty seems to be headed downwards. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds whereas the Bears need to breach the levels of 5840 on the Nifty 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(5830) and also its 200DMA.
3) The stochastics continue to remain in the oversold zone.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the fall may get arrested soon. The MACD is again growing on the negative side. The ADX is suggesting a gain of momentum for the down move. The Parabolic SAR continues with its sell signal with a SL of 5978.
5) Considering the above, our trading plan for the day is as under.
a) Around 5915 we will open fresh short positions with a SL of 5930 and a target of 5870. We will add to these short positions only below 5845.
b) Around 5860 we will open fresh long positions with a SL of 5845 and a target of 5905. We will add to these long positions only above 5930.
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 on Friday, the Bears continued to tighten the noose on the Nifty, and opened it with a down gap of 27 points and made a lower low at 5854. The Bulls attempt at a late hour recovery on the Nifty, fizzled out at 5900 and the Nifty closed at 5887 with a loss of 10 points. Our trading plan (b) which was aimed at this attempt to recovery, got triggered and hit its stop loss before the rise came in. We had to book a loss of 15 points.
1) The Elder Ray readings : Bull Power reduces from -12 to -43 Bear Power rises from -67 to -89 indicating that the Bears are now firmly in the driver's seat as the Nifty seems to be headed downwards. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds whereas the Bears need to breach the levels of 5840 on the Nifty 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(5830) and also its 200DMA.
3) The stochastics continue to remain in the oversold zone.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the fall may get arrested soon. The MACD is again growing on the negative side. The ADX is suggesting a gain of momentum for the down move. The Parabolic SAR continues with its sell signal with a SL of 5978.
5) Considering the above, our trading plan for the day is as under.
a) Around 5915 we will open fresh short positions with a SL of 5930 and a target of 5870. We will add to these short positions only below 5845.
b) Around 5860 we will open fresh long positions with a SL of 5845 and a target of 5905. We will add to these long positions only above 5930.
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) about to trigger. Looks like.
ReplyDeletefutures have hit the level mentioned for shorting i.e 5915
ReplyDeleteshould we wait for spot level or can short now?
amit
Open fresh short position at 5910 as per trading plan(a) with SL of 5930
ReplyDeletePartially squared off at 5895 booking a quick profit of 15 points intraday.
ReplyDeleteSquared off balance 1 lot at 5900. Booking 10 point profit.
ReplyDeleteTotal profit for the day 25 points