Nifty poised bearishly on Budget day. Any rally now, could be short lived.
As discussed yesterday, Bearish sentiment grew on the Nifty, with the Nifty, aided by global cues, opened with a 24 point positive gap, got sold into and tested previous day's low at 5749, before recovering fully and making a lower high of 5818 and closing at 5797. Both the Bears & the Bulls failed to breach the previous day's lows and highs respectively. However, the overall bearish outlook on the Nifty remains intact. We have a outstanding short position carried forward from yesterday's trade, with a maximum loss of 40 points, as we have purchased 5800 PE at 40.
1) The Elder Ray readings : Bull Power reduces from -47 to -55 Bear Power also reduces from -137 to -123, indicating the overall bearish sentiments prevailing on the Nifty. For today, the Bulls need to overcome the levels of 5865 to regain their lost grounds, whereas the Bears need to breach the Nifty below the levels of 5740 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA.
3) The stochastics are in the oversold zone and are looking up.
4) In the above chart, the volumes have increased with the Nifty gaining in price, indicating that the up move may continue. The MACD however, continues to grow on the negative side. The ADX is suggesting a pause in the bearish momentum, but is still favoring the Bears. The Parabolic SAR continues with its sell signal with a SL of 5934.
5) Considering the above, our trading plan for the day is as under.
a) Around 5835 we will open fresh short positions with a SL of 5845 and a target of 5775. We will add to these short positions only below 5750.
b) Around 5760 we will open fresh long positions with a SL of 5750 and a target of 5795. We will add to these long positions only above 5850.
c) Today, being a big event day as well as series expiry day, the Nifty can become highly volatile, and as such, if the indications are not favorable, we may decide to skip the trade completely to avoid getting whipsawed.
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, Bearish sentiment grew on the Nifty, with the Nifty, aided by global cues, opened with a 24 point positive gap, got sold into and tested previous day's low at 5749, before recovering fully and making a lower high of 5818 and closing at 5797. Both the Bears & the Bulls failed to breach the previous day's lows and highs respectively. However, the overall bearish outlook on the Nifty remains intact. We have a outstanding short position carried forward from yesterday's trade, with a maximum loss of 40 points, as we have purchased 5800 PE at 40.
1) The Elder Ray readings : Bull Power reduces from -47 to -55 Bear Power also reduces from -137 to -123, indicating the overall bearish sentiments prevailing on the Nifty. For today, the Bulls need to overcome the levels of 5865 to regain their lost grounds, whereas the Bears need to breach the Nifty below the levels of 5740 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA.
3) The stochastics are in the oversold zone and are looking up.
4) In the above chart, the volumes have increased with the Nifty gaining in price, indicating that the up move may continue. The MACD however, continues to grow on the negative side. The ADX is suggesting a pause in the bearish momentum, but is still favoring the Bears. The Parabolic SAR continues with its sell signal with a SL of 5934.
5) Considering the above, our trading plan for the day is as under.
a) Around 5835 we will open fresh short positions with a SL of 5845 and a target of 5775. We will add to these short positions only below 5750.
b) Around 5760 we will open fresh long positions with a SL of 5750 and a target of 5795. We will add to these long positions only above 5850.
c) Today, being a big event day as well as series expiry day, the Nifty can become highly volatile, and as such, if the indications are not favorable, we may decide to skip the trade completely to avoid getting whipsawed.
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 right into our suggested resistance zone and trading plan(a) most likely to be triggered.
ReplyDeleteHowever, we are averse of taking that trade at the opening, looking at the advance decline in the Nifty 50 stocks. 49 Advances vs 1 Decline.
Would like to wait it out for a while.
Squared off shorts taken yesterday at 5795 now at 5740 booking a profit of 55 points.
ReplyDeleteSquared off 5800 PE at 114 with a profit of 74 points just before EOD.
ReplyDeleteProfit table for the day
ReplyDeleteFutures : 55 points
Options :74 points
Totals : 129 points