With the huge Bear attack yesterday, Nifty may attempt a bounce in a choppy session.
As discussed in yesterday's post, the Bears had regained their footing. The Nifty opened with a huge gap down of 44 points, filled the gap and immediately got sold off to make a low of 5956 before closing at 5967 with a loss of a whopping 127 points. Our trading plan (a) triggered right at the opening mark and we took that trade and booked out with a loss of 23 points as the SL got hit on that trade. We did not take the trade when part b of our trading plan(b) got triggered as we were away from the markets for the entire session thereafter.
1) The Elder Ray readings : Bull Power reduces from +72 to +21 Bear Power rises from -1 to -104 indicating that the Bears have now really stamped their authority, however, the Bulls are still in their safe zone and can attempt a comeback. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the levels of 5940 to maintain their downwards momentum.
2) The fast stochastics have now gone deep into the oversold zone, with the slow stochastics still in the neutral zone and pointing downwards.
3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue as of now. The MACD has given out a clear sell signal with the histogram also falling in the negative. The ADX is now favoring the Bears and the Parabolic SAR has turned into a Sell signal with the SL at 6229.
5) Considering the above, our trading plan for the day is as under.
a) Around 6010 we will open fresh short positions with a SL of 6030 and a target of 5955. We will add to these short positions only below 5940.
b) Around 5950 we will open fresh long positions with a SL of 5940 and a target of 6000. We will add to these long positions only above 6030.
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 in yesterday's post, the Bears had regained their footing. The Nifty opened with a huge gap down of 44 points, filled the gap and immediately got sold off to make a low of 5956 before closing at 5967 with a loss of a whopping 127 points. Our trading plan (a) triggered right at the opening mark and we took that trade and booked out with a loss of 23 points as the SL got hit on that trade. We did not take the trade when part b of our trading plan(b) got triggered as we were away from the markets for the entire session thereafter.
1) The Elder Ray readings : Bull Power reduces from +72 to +21 Bear Power rises from -1 to -104 indicating that the Bears have now really stamped their authority, however, the Bulls are still in their safe zone and can attempt a comeback. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the levels of 5940 to maintain their downwards momentum.
2) The fast stochastics have now gone deep into the oversold zone, with the slow stochastics still in the neutral zone and pointing downwards.
3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue as of now. The MACD has given out a clear sell signal with the histogram also falling in the negative. The ADX is now favoring the Bears and the Parabolic SAR has turned into a Sell signal with the SL at 6229.
5) Considering the above, our trading plan for the day is as under.
a) Around 6010 we will open fresh short positions with a SL of 6030 and a target of 5955. We will add to these short positions only below 5940.
b) Around 5950 we will open fresh long positions with a SL of 5940 and a target of 6000. We will add to these long positions only above 6030.
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) got triggered and hit its target almost.
ReplyDeleteBooked out with a profit of 50 points.
Trading plan (b) got triggered now.
ReplyDeleteOpened fresh long position at 5950 with a SL of 5940
SL hit at 5940.
ReplyDeleteStopped out with a loss of 10 points.
Nett till now +40 points
Trading plan (b) re-triggered. and is now yielding 30 points already.
ReplyDeleteBooked out of long positions at 5990 with a profit of 40 points again.
ReplyDeleteNice day with a total profit of 80 points already in the first half itself.