As Bulls falter, Bears, aided by global cues, reclaim their position. Downtrend stays.
As discussed yesterday, Bulls had faltered at resistances. The Nifty, taking global cues, opened with a 42 point gap down. Then got sold off heavily, breaching 5900 levels and going down as far as 5845 before closing at 5852 with a heavy loss of 90 points. In our yesterday's post, despite the Nifty closing on a positive note, we had suggested that the negative outlook had returned. Part b of our trading plan(b) triggered and we could make 110 points profit in the 3 trades that were taken yesterday.
1) The Elder Ray readings : Bull Power reduces from +33 to -4 Bear Power rises from 0 to -81 indicating that not only the Bears have regained their lost grounds, they have now also dragged the Bulls out of their safe zone. For today, the Bulls need to overcome the levels of 5920 to regain their lost grounds, whereas the Bears need to breach the levels of 5840 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The fast stochastics are deep into the oversold zone, while the slow counterpart is still in the neutral zone and is pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD has resumed its downward journey. The ADX is now showing favor to the Bears. The Parabolic SAR also has returned to giving out a sell signal with a SL of 5971.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875, we will open fresh short positions with a SL of 5895 and a target of 5830. We will add to these short positions only below 5805.
b) Around 5820, we will open fresh long positions with a SL of 5805 and a target of 5855. We will add to these long positions only above 5895.
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 had faltered at resistances. The Nifty, taking global cues, opened with a 42 point gap down. Then got sold off heavily, breaching 5900 levels and going down as far as 5845 before closing at 5852 with a heavy loss of 90 points. In our yesterday's post, despite the Nifty closing on a positive note, we had suggested that the negative outlook had returned. Part b of our trading plan(b) triggered and we could make 110 points profit in the 3 trades that were taken yesterday.
1) The Elder Ray readings : Bull Power reduces from +33 to -4 Bear Power rises from 0 to -81 indicating that not only the Bears have regained their lost grounds, they have now also dragged the Bulls out of their safe zone. For today, the Bulls need to overcome the levels of 5920 to regain their lost grounds, whereas the Bears need to breach the levels of 5840 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The fast stochastics are deep into the oversold zone, while the slow counterpart is still in the neutral zone and is pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD has resumed its downward journey. The ADX is now showing favor to the Bears. The Parabolic SAR also has returned to giving out a sell signal with a SL of 5971.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875, we will open fresh short positions with a SL of 5895 and a target of 5830. We will add to these short positions only below 5805.
b) Around 5820, we will open fresh long positions with a SL of 5805 and a target of 5855. We will add to these long positions only above 5895.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty in consolidation mode right now, within a no trade zone.
ReplyDeleteAs today is a crucial weekend, we may witness high volatility late in the day.
We will look out for volumes, which will be a key indicator at that time.
If the Nifty moves in one direction sharply and with low volumes, then it is likely to be a good trade setup in the reverse direction.
Waiting for that opportunity.
Opened short position at 5864 with SL of 5875 and target of 5840
ReplyDeleteSquared off short positions at 5848 with a profit of 16*2=32 points.
ReplyDeleteSquaring off done as only 15 minutes of trading time left for the day.