Bulls lose their grip on the Nifty as choppiness and volatility rises.
As discussed on Friday, the Nifty did turn choppy and volatile. The Nifty opened with a whopping positive gap of 43 points at 6011, made a high of 6015, got dragged down to just below our support levels at 5937 before closing at 5984 with a minor gain of 17 points. Both our trading plans triggered in this volatility and we could book out with a nice gain of 80 points during the day.
1) The Elder Ray readings : Bull Power reduces from +21 to -34 Bear Power rises from -104 to -112 indicating that not only the Bears are in the driver's seat now, the Bulls have also lost their footing and Nifty may trade with a negative bias now. For today, the Bulls need to overcome the levels of 6040 to regain their lost grounds whereas the Bears need to breach the Nifty below 5925 to maintain their downwards momentum.
2) The stochastics are now deeply into the oversold zone and are pointing upwards.
3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the up move may falter. The MACD is turning downwards with the histogram also being growing in the negative. The ADX is suggesting a loss of overall momentum with the favor to the Bears. The Parabolic SAR continues with its sell signal with the SL now at 6224.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030 we will open fresh short positions with a SL of 6050 and a target of 5945. We will add to these short positions only below 5915.
b) Around 5935 we will open fresh long positions with a SL of 5915 and a target of 5980. We will add to these long positions only above 6050.
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 on Friday, the Nifty did turn choppy and volatile. The Nifty opened with a whopping positive gap of 43 points at 6011, made a high of 6015, got dragged down to just below our support levels at 5937 before closing at 5984 with a minor gain of 17 points. Both our trading plans triggered in this volatility and we could book out with a nice gain of 80 points during the day.
1) The Elder Ray readings : Bull Power reduces from +21 to -34 Bear Power rises from -104 to -112 indicating that not only the Bears are in the driver's seat now, the Bulls have also lost their footing and Nifty may trade with a negative bias now. For today, the Bulls need to overcome the levels of 6040 to regain their lost grounds whereas the Bears need to breach the Nifty below 5925 to maintain their downwards momentum.
2) The stochastics are now deeply into the oversold zone and are pointing upwards.
3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the up move may falter. The MACD is turning downwards with the histogram also being growing in the negative. The ADX is suggesting a loss of overall momentum with the favor to the Bears. The Parabolic SAR continues with its sell signal with the SL now at 6224.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030 we will open fresh short positions with a SL of 6050 and a target of 5945. We will add to these short positions only below 5915.
b) Around 5935 we will open fresh long positions with a SL of 5915 and a target of 5980. We will add to these long positions only above 6050.
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) has triggered. Opened fresh short positions at 6030 with a SL of 6050
ReplyDeleteSquared off short position at 6015 with a profit of 20 points as Nifty future discount also grew by 5 points by that time.
ReplyDelete