Bears stomp the Bulls and bring the Nifty at the bottom of the 280 point trading range.
On Friday, it was the last day of the month and the Bears ruled the roost for the entire trading session. The Nifty opened with a negative gap of 26 points, did not even try to bridge that gap, made a high of 6106 and then got consistently sold off through out the trading session to make a low of 5976 before closing at 5986 with a whopping loss of 138 points in one single trading session. We were on a trading holiday and missed out on a major move.
1) The Elder Ray readings : Bull Power reduces from +57 to +43 Bear Power rises from -4 to -88 indicating that the Bears are now in the driving seat, however, the Bulls are still in their safe zone, and that the Bears need to prevent them from overcoming 6060. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5960 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing downwards.
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 remain high with the fall in the Nifty indicating that the fall may continue. The MACD continues to point down with the histogram growing in the negative. The ADX is suggesting a fall in the overall momentum, with the Bulls and the Bears being equal. The Parabolic SAR continues with its sell signal with the SL now pegged at 6171.
5) Considering the above, our trading plan for the day is as under.
a) Around 6035 we will open fresh short positions with a SL of 6060 and a target of 5955. We will add to these short positions only below 5910.
b) Around 5940 we will open fresh long positions with a SL of 5910 and a target of 6025. We will add to these long positions only above 6060.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, it was the last day of the month and the Bears ruled the roost for the entire trading session. The Nifty opened with a negative gap of 26 points, did not even try to bridge that gap, made a high of 6106 and then got consistently sold off through out the trading session to make a low of 5976 before closing at 5986 with a whopping loss of 138 points in one single trading session. We were on a trading holiday and missed out on a major move.
1) The Elder Ray readings : Bull Power reduces from +57 to +43 Bear Power rises from -4 to -88 indicating that the Bears are now in the driving seat, however, the Bulls are still in their safe zone, and that the Bears need to prevent them from overcoming 6060. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5960 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing downwards.
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 remain high with the fall in the Nifty indicating that the fall may continue. The MACD continues to point down with the histogram growing in the negative. The ADX is suggesting a fall in the overall momentum, with the Bulls and the Bears being equal. The Parabolic SAR continues with its sell signal with the SL now pegged at 6171.
5) Considering the above, our trading plan for the day is as under.
a) Around 6035 we will open fresh short positions with a SL of 6060 and a target of 5955. We will add to these short positions only below 5910.
b) Around 5940 we will open fresh long positions with a SL of 5910 and a target of 6025. We will add to these long positions only above 6060.
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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