Post a smart comeback, Bulls falter at first resistance. Negative outlook returns.
As discussed yesterday, Bulls staged a smart comeback, by opening the Nifty with a positive gap of 26 points, and then swiftly getting it above 5970. However, the first resistance level of 5970 proved too much for the Bulls and the Nifty got sold off to hit a low of 5938 before closing at 5943 with a gain of just 3 points. Our trading plan (a) got triggered right away and we could book a profit of 50 points on two lots traded. Nifty has got resisted now below the rising trend line joining the lows of June July September and November 2012, and has traded below that line 5 trading sessions now. Bulls need to capture the levels of 5980 to negate the Bears.
1) The Elder Ray readings : Bull Power rises from +11 to +33 Bear Power reduces from -54 to 0 indicating that the Bears having lost momentum, are not yet out of their territory and can stage a comeback. For today, the Bulls need to overcome the levels of 5975 to maintain their upwards momentum, whereas the Bears have to breach the levels of 5930 to regain their lost grounds.
2) The Nifty has managed to close above it 8EMA(5927) and 13EMA(5938). However it has closed below its 21EMA(5951). It has also closed below its 50DMA but is above its 100DMA and 200DMA.
3) The stochastics are in the neutral zone and are pointing flat.
4) In the above chart, the volumes have increased with the Nifty forming a red candle, indicating that there is stiff resistance at higher levels. The MACD continues in the negative, although it is flattening out. The ADX is favoring the Bulls as of now, but indicating overall loss of momentum for the Nifty. The Parabolic SAR has now started a fresh Buy signal with the SL at 5854, which is the current swing low.
5) Considering the above, our trading plan for the day is as under.
a) Around 5915 we will open fresh long positions with a SL of 5900 and a target of 5960. We will add to these long positions only above 5985.
b) Around 5965 we will open fresh short positions with a SL of 5985 and a target of 5920. We will add to these short positions only below 5900.
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, Bulls staged a smart comeback, by opening the Nifty with a positive gap of 26 points, and then swiftly getting it above 5970. However, the first resistance level of 5970 proved too much for the Bulls and the Nifty got sold off to hit a low of 5938 before closing at 5943 with a gain of just 3 points. Our trading plan (a) got triggered right away and we could book a profit of 50 points on two lots traded. Nifty has got resisted now below the rising trend line joining the lows of June July September and November 2012, and has traded below that line 5 trading sessions now. Bulls need to capture the levels of 5980 to negate the Bears.
1) The Elder Ray readings : Bull Power rises from +11 to +33 Bear Power reduces from -54 to 0 indicating that the Bears having lost momentum, are not yet out of their territory and can stage a comeback. For today, the Bulls need to overcome the levels of 5975 to maintain their upwards momentum, whereas the Bears have to breach the levels of 5930 to regain their lost grounds.
2) The Nifty has managed to close above it 8EMA(5927) and 13EMA(5938). However it has closed below its 21EMA(5951). It has also closed below its 50DMA but is above its 100DMA and 200DMA.
3) The stochastics are in the neutral zone and are pointing flat.
4) In the above chart, the volumes have increased with the Nifty forming a red candle, indicating that there is stiff resistance at higher levels. The MACD continues in the negative, although it is flattening out. The ADX is favoring the Bulls as of now, but indicating overall loss of momentum for the Nifty. The Parabolic SAR has now started a fresh Buy signal with the SL at 5854, which is the current swing low.
5) Considering the above, our trading plan for the day is as under.
a) Around 5915 we will open fresh long positions with a SL of 5900 and a target of 5960. We will add to these long positions only above 5985.
b) Around 5965 we will open fresh short positions with a SL of 5985 and a target of 5920. We will add to these short positions only below 5900.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opens below our trading plan(a) levels. Now will look out to short the Nifty whenever part b of our trading plan(b) triggers below 5900 with a SL of 5925 and a target of 5955.
ReplyDeleteOpened fresh short position at 5910 as a small deviation to the part b of our trading plan(b), looking at the advance decline negation and Nifty struggling to cross 5915 now.
ReplyDeleteThe SL for this trade will be at 5925 initially, and the target will be 5855.
Squared off long positions at 5870 with a profit of 80 points (40*2 lots).
ReplyDeleteWill re-enter shorts if Nifty trades near 5885 again.
Re-entered short with only one lot now at 5878 with SL of 5888 and target of 5848
ReplyDeleteExited short position at 5848 as target achieved.
ReplyDeleteAnother 30 points gain.
Today's total profit 80+30=110 points.