Despite the minor bounce, Nifty appears bearish. Sell on rise will be the mantra.
As discussed on Friday, we had suggested that the bearishness was overstretched, and that was what we saw on the Nifty. The Nifty opened with a positive gap of 9 points and then traded within a confined range of 5680 and 5740 before closing at 5720 with a gain of 27 points. It must be noted that the Bears were not able to breach the previous day's lows, indicating that the down move may have got arrested now. Our trading plan (b) got triggered and we could book out with a small profit of 15 points by EOD.
1) The Elder Ray readings : Bull Power reduces from +3 to -90 Bear Power also reduces from -175 to -149 indicating that the Bears are now losing momentum, but the Bulls are also very much tired and injured. For today, the Bulls need to overcome the levels of 5810 to regain their lost grounds whereas the Bears need to breach the levels of 5660 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA, which is still rising.
3) The stochastics are still in the oversold zone and are looking up.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may get arrested soon. The MACD continues to move downwards, however, the histogram suggests a pause in the down move. The ADX is suggesting a loss of momentum for the Bears but still favors them over the Bulls. The Parabolic SAR continues with its sell signal, with a SL now pegged at 5889.
5) Considering the above, our trading plan for the day is as under.
a) Around 5760, we will open fresh short positions with a SL of 5775 and a target of 5705. We will add to these short positions only below 5665.
b) Around 5690, we will open fresh long positions with a SL of 5665 and a target of 5740. We will add to these long positions only above 5775.
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, we had suggested that the bearishness was overstretched, and that was what we saw on the Nifty. The Nifty opened with a positive gap of 9 points and then traded within a confined range of 5680 and 5740 before closing at 5720 with a gain of 27 points. It must be noted that the Bears were not able to breach the previous day's lows, indicating that the down move may have got arrested now. Our trading plan (b) got triggered and we could book out with a small profit of 15 points by EOD.
1) The Elder Ray readings : Bull Power reduces from +3 to -90 Bear Power also reduces from -175 to -149 indicating that the Bears are now losing momentum, but the Bulls are also very much tired and injured. For today, the Bulls need to overcome the levels of 5810 to regain their lost grounds whereas the Bears need to breach the levels of 5660 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA, which is still rising.
3) The stochastics are still in the oversold zone and are looking up.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may get arrested soon. The MACD continues to move downwards, however, the histogram suggests a pause in the down move. The ADX is suggesting a loss of momentum for the Bears but still favors them over the Bulls. The Parabolic SAR continues with its sell signal, with a SL now pegged at 5889.
5) Considering the above, our trading plan for the day is as under.
a) Around 5760, we will open fresh short positions with a SL of 5775 and a target of 5705. We will add to these short positions only below 5665.
b) Around 5690, we will open fresh long positions with a SL of 5665 and a target of 5740. We will add to these long positions only above 5775.
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 (b) has triggered.
ReplyDeleteOpened fresh intraday long position at 5685 with a SL of 5665 and target of 5740
SL hit at 5665. Booked loss of 20 points.
ReplyDelete