Bulls waste their last chance as Bears breach the Nifty well below 200DMA.
As discussed yesterday, the Bulls still had a chance, for recovery of losses. However, the Bears had other ideas and the Nifty got sold off, right from the word go, as it opened weak with a negative gap of 32 points and kept going down all through the trading session. The Nifty made a intraday low of 5566 before closing at 5575, well below our identified support zone of 5605 5585.
1) The Elder Ray readings : Bull Power reduces from +21 to -58 Bear Power rises from -73 to -136 indicating that the Bears are now in full control of the Nifty as the Bulls gasp for breath. For today the Bulls need to overcome the levels of 5680 to regain their lost grounds whereas the Bears need to breach the Nifty below 5550 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs and also below all its key DMAs.
3) The fast stochastics are now well and deep into the oversold zone even as the slow stochastics are still outside the oversold zone and are pointing downwards.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD has turned negative again with the histogram growing more in the negative. The ADX is now back again in favor of the Bears. The Parabolic SAR continues with its sell signal with the SL now pegged at 5745.
5) Considering the above, our trading plan for the day is as under.
a) Around 5525 we will open fresh long positions with a SL of 5505 and a target of 5595. We will add to these long positions only above 5645.
b) Around 5630 we will open fresh short positions with a SL of 5645 and a target of 5545. We will add to these short positions only below 5505.
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, the Bulls still had a chance, for recovery of losses. However, the Bears had other ideas and the Nifty got sold off, right from the word go, as it opened weak with a negative gap of 32 points and kept going down all through the trading session. The Nifty made a intraday low of 5566 before closing at 5575, well below our identified support zone of 5605 5585.
1) The Elder Ray readings : Bull Power reduces from +21 to -58 Bear Power rises from -73 to -136 indicating that the Bears are now in full control of the Nifty as the Bulls gasp for breath. For today the Bulls need to overcome the levels of 5680 to regain their lost grounds whereas the Bears need to breach the Nifty below 5550 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs and also below all its key DMAs.
3) The fast stochastics are now well and deep into the oversold zone even as the slow stochastics are still outside the oversold zone and are pointing downwards.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD has turned negative again with the histogram growing more in the negative. The ADX is now back again in favor of the Bears. The Parabolic SAR continues with its sell signal with the SL now pegged at 5745.
5) Considering the above, our trading plan for the day is as under.
a) Around 5525 we will open fresh long positions with a SL of 5505 and a target of 5595. We will add to these long positions only above 5645.
b) Around 5630 we will open fresh short positions with a SL of 5645 and a target of 5545. We will add to these short positions only below 5505.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.