Bulls try hard, but fail to conquer resistances, as the Bearish outlook persists.
As discussed yesterday, we expected the down move to continue. However, the Nifty after opening flat, made a low of 5878 and then consolidated in a narrow band of 25 points, making a high of 5911 before closing at 5989, with a net gain of 10 points. Our trading plan (a) got triggered and we were able to book 25 points profit on two lots traded.
1) The Elder Ray readings : Bull Power rises from -43 to -25 Bear Power reduces from -89 to -58 indicating that the Bulls have tried hard but have failed to garner enough momentum. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However it is above its 100DMA and 200DMA.
3) The stochastics continue to remain in the oversold zone.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may not be a prolonged one. The MACD continues to remain in the negative and does not reflect the rise in the Nifty. The ADX is still favoring the down move. The Parabolic SAR continues with its sell signal with a SL now at 5960.
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 5940 and a target of 5880. We will add to these short positions only below 5860.
b) Around 5870 we will open fresh long positions with a SL of 5860 and a target of 5900. We will add to these long positions only above 5940.
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, we expected the down move to continue. However, the Nifty after opening flat, made a low of 5878 and then consolidated in a narrow band of 25 points, making a high of 5911 before closing at 5989, with a net gain of 10 points. Our trading plan (a) got triggered and we were able to book 25 points profit on two lots traded.
1) The Elder Ray readings : Bull Power rises from -43 to -25 Bear Power reduces from -89 to -58 indicating that the Bulls have tried hard but have failed to garner enough momentum. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However it is above its 100DMA and 200DMA.
3) The stochastics continue to remain in the oversold zone.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may not be a prolonged one. The MACD continues to remain in the negative and does not reflect the rise in the Nifty. The ADX is still favoring the down move. The Parabolic SAR continues with its sell signal with a SL now at 5960.
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 5940 and a target of 5880. We will add to these short positions only below 5860.
b) Around 5870 we will open fresh long positions with a SL of 5860 and a target of 5900. We will add to these long positions only above 5940.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty trading feverishly in a 20 point range between 5885 and 5905.
ReplyDeleteWe are sitting on the sidelines watching the madness, waiting for our opportunity to enter.
Opened fresh short positions at 5912 as per trading plan (a) with SL of 5940
ReplyDeleteAdded one more lot of short at 5920
ReplyDeleteSL Hit at 5940. Booked a loss of 48 points in two lots together.
ReplyDelete