Bulls recovered a lot yesterday, but need more follow up today. Choppiness expected.
As discussed yesterday, we expected the Bearish outlook to sustain, however, aided by global cues, the Nifty opened with a positive gap of 24 points and maintained that gap over the entire trading session, making a high of 5790 before closing at 5784. Once the Nifty surpassed the levels of 5755, the under currents turned Bullish for the day. We had suggested in our yesterday's post that a Bullish backlash was just round the corner, and that we should be mentally prepared for that. In our two trades taken yesterday, we could nett a gain of 17 points, despite one of our trades hitting the SL.
1) The Elder Ray readings : Bull Power rises from -98 to -16 Bear Power reduces from -147 to -84 indicating that there is still more to be done by the Bulls and that the Bears are not yet out of the leadership struggle. For today, the Bulls need to overcome the levels of 5805 to regain their lost grounds whereas the Bears need to breach the Nifty below 5720 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA(5774), but below its 13EMA and 21EMA. It has also closed below its 50DMA and its 100DMA but has closed above its 200DMA.
3) The stochastics are just out of the oversold zone and are pointing upwards.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty, indicating lack of participation in the rising prices. The MACD is still in the negative, but is reversing. The ADX is showing a rise in the Bullish momentum, but still favors the Bears. The Parabolic SAR continues with its sell signal with a SL of 5842.
5) Considering the above, our trading plan for the day is as under.
a) Around 5825, we will open fresh short positions with a SL of 5840 and a target of 5775. We will add to these short positions only below 5745.
b) Around 5765, we will open fresh long positions with a SL of 5745 and a target of 5810. We will add to these long positions only above 5840.
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 Bearish outlook to sustain, however, aided by global cues, the Nifty opened with a positive gap of 24 points and maintained that gap over the entire trading session, making a high of 5790 before closing at 5784. Once the Nifty surpassed the levels of 5755, the under currents turned Bullish for the day. We had suggested in our yesterday's post that a Bullish backlash was just round the corner, and that we should be mentally prepared for that. In our two trades taken yesterday, we could nett a gain of 17 points, despite one of our trades hitting the SL.
1) The Elder Ray readings : Bull Power rises from -98 to -16 Bear Power reduces from -147 to -84 indicating that there is still more to be done by the Bulls and that the Bears are not yet out of the leadership struggle. For today, the Bulls need to overcome the levels of 5805 to regain their lost grounds whereas the Bears need to breach the Nifty below 5720 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA(5774), but below its 13EMA and 21EMA. It has also closed below its 50DMA and its 100DMA but has closed above its 200DMA.
3) The stochastics are just out of the oversold zone and are pointing upwards.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty, indicating lack of participation in the rising prices. The MACD is still in the negative, but is reversing. The ADX is showing a rise in the Bullish momentum, but still favors the Bears. The Parabolic SAR continues with its sell signal with a SL of 5842.
5) Considering the above, our trading plan for the day is as under.
a) Around 5825, we will open fresh short positions with a SL of 5840 and a target of 5775. We will add to these short positions only below 5745.
b) Around 5765, we will open fresh long positions with a SL of 5745 and a target of 5810. We will add to these long positions only above 5840.
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 (a) triggered.
ReplyDeleteOpened short position at 5825 with SL of 5840
Shorted NF @ 5844 in the above mentioned trade.
ReplyDeleteSquared off short positions at 5824 NF 5803 NS booking a profit of 20 points.
ReplyDeleteExited the trade as EMAs stacked still in favor of Bulls on the 15 min. chart, and Nifty holding day's low as well as DHEma (5799)