Bears have regained their footing. But need followup to maintain that.
As discussed yesterday, there was Profit booking induced choppiness on the Nifty. The Nifty opened with a positive gap of 13 points and climbed higher. But found resistance at 6148, just below our identified levels of 6150 and 6155. From there the Nifty entered choppy territory and sold of in the later stages to make a low of 6074, again near our identified support level of 6075 and climbed back from there to close at 6095 with a loss of 20 points. Our trading plan (a) triggered and we could book out with a quick profit of 25 points by EOD.
1) The Elder Ray readings : Bull Power reduces from +108 to +72 Bear Power rises from +30 to -1 indicating that the Bears have now regained all their lost grounds. Although the Bulls are pretty safe in their zone now, and about 70 points away from their opponents. For today, the Bulls need to overcome the levels of 6155 to maintain their upwards momentum whereas the Bears need to breach the levels of 6070 to maintain their downwards momentum.
2) The Nifty has closed above all its key DMAs and also above its 21EMA and 13EMA. However, it has closed below its 8EMA (6108) which it needs to cross for more bullish momentum.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have stagnated with the fall in the Nifty, indicating that the down move may continue for a while now. The MACD is just about to give out the negative divergence, but stops just short of that. The histogram is also not negative as yet. The ADX is suggesting a loss of Bullish momentum and a rise of Bearish momentum. However, it still favors the Bulls. The Parabolic SAR continues with its Buy signal with a SL of 6034.
5) Considering the above, our trading plan for the day is as under.
a) Around 6055 we will open fresh long positions with a SL of 6035 and a target of 6135. We will add to these long positions only above 6155.
b) Around 6140 we will open fresh short positions with a SL of 6155 and a target of 6100. We will add to these short positions only below 6035.
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, there was Profit booking induced choppiness on the Nifty. The Nifty opened with a positive gap of 13 points and climbed higher. But found resistance at 6148, just below our identified levels of 6150 and 6155. From there the Nifty entered choppy territory and sold of in the later stages to make a low of 6074, again near our identified support level of 6075 and climbed back from there to close at 6095 with a loss of 20 points. Our trading plan (a) triggered and we could book out with a quick profit of 25 points by EOD.
1) The Elder Ray readings : Bull Power reduces from +108 to +72 Bear Power rises from +30 to -1 indicating that the Bears have now regained all their lost grounds. Although the Bulls are pretty safe in their zone now, and about 70 points away from their opponents. For today, the Bulls need to overcome the levels of 6155 to maintain their upwards momentum whereas the Bears need to breach the levels of 6070 to maintain their downwards momentum.
2) The Nifty has closed above all its key DMAs and also above its 21EMA and 13EMA. However, it has closed below its 8EMA (6108) which it needs to cross for more bullish momentum.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have stagnated with the fall in the Nifty, indicating that the down move may continue for a while now. The MACD is just about to give out the negative divergence, but stops just short of that. The histogram is also not negative as yet. The ADX is suggesting a loss of Bullish momentum and a rise of Bearish momentum. However, it still favors the Bulls. The Parabolic SAR continues with its Buy signal with a SL of 6034.
5) Considering the above, our trading plan for the day is as under.
a) Around 6055 we will open fresh long positions with a SL of 6035 and a target of 6135. We will add to these long positions only above 6155.
b) Around 6140 we will open fresh short positions with a SL of 6155 and a target of 6100. We will add to these short positions only below 6035.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opened right into our support zone.
ReplyDeleteHave opened long position at 6058 with a SL of 6035 and target of 6135 as per trading plan (a)