Relief rally fails midway, and the Nifty continues to move south. Sell on rises.
As discussed yesterday, we saw the double bottom make its presence felt and the Nifty attempted the much expected relief rally. However, the Bulls could not sustain the Nifty above the crucial level of 5750, which emboldened the Bears and the Nifty got sold off, not only to breach the near term lows, but to close well below that level. We could garner a profit of 35 points during the 3 trades that we entered yesterday.
1) The Elder Ray readings : Bull Power rises from -78 to -42 Bear Power also rises from -141 to -152 indicating that the Bears are in the driver's seat, with the Bulls out of their safety zone. For today, the Bulls need to overcome the levels of 5780 to regain their lost grounds whereas the Bears need to breach the Nifty below 5630 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(5615)
3) The stochastics are now in the oversold zone and are still pointing downwards.
4) In the above chart, the volumes have remained stagnant with the fall in the Nifty indicating that the fall may continue. The MACD continues to indicate a down move with the histogram also being in the negative. The ADX is suggesting a loss in the downwards momentum, but still is favoring the Bears. The Parabolic SAR continues to give out its sell signal with a SL of 5953.
5) Considering the above, our trading plan for the day is as under.
a) We will wait out for the day to get over, as the Nifty continues to get overstretched on the down side.
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 saw the double bottom make its presence felt and the Nifty attempted the much expected relief rally. However, the Bulls could not sustain the Nifty above the crucial level of 5750, which emboldened the Bears and the Nifty got sold off, not only to breach the near term lows, but to close well below that level. We could garner a profit of 35 points during the 3 trades that we entered yesterday.
1) The Elder Ray readings : Bull Power rises from -78 to -42 Bear Power also rises from -141 to -152 indicating that the Bears are in the driver's seat, with the Bulls out of their safety zone. For today, the Bulls need to overcome the levels of 5780 to regain their lost grounds whereas the Bears need to breach the Nifty below 5630 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(5615)
3) The stochastics are now in the oversold zone and are still pointing downwards.
4) In the above chart, the volumes have remained stagnant with the fall in the Nifty indicating that the fall may continue. The MACD continues to indicate a down move with the histogram also being in the negative. The ADX is suggesting a loss in the downwards momentum, but still is favoring the Bears. The Parabolic SAR continues to give out its sell signal with a SL of 5953.
5) Considering the above, our trading plan for the day is as under.
a) We will wait out for the day to get over, as the Nifty continues to get overstretched on the down side.
Happy trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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