Bears comeback and pushover the Bulls. Trading below 5985, weakness rises.
As discussed yesterday, Bears snatched back the advantage from the Bulls, and pushed over the Bulls out of their safety zone on the Elder Ray. The Nifty opened with a positive gap of 11 points, made a quick high of 6011 and then started getting sold off. Once it broke the key support levels, it broke even the last swing lows of 5937. The Nifty made a low of 5916 before closing at 5939 with a loss of 47 points. Our trading plan(b) got triggered and would have made us a quick 15 to 20 points profit, but looking at the market internals at that point of time, we preferred not to trade as the risk perception of that trade was too much.
1) The Elder Ray readings : Bull Power reduces from +43 to -35 Bear Power rises from -88 to -129 indicating that the Bulls have now lost their footing and the Bears are growing stronger. For today, the Bulls need to overcome the levels of 6030 to regain their lost grounds whereas the Bears need to breach the levels of 5900 to maintain their downwards momentum.
2) The fast stochastics are already in the oversold zone and the slow stochastics are following close behind and pointing downwards.
3) The Nifty has closed below all its key EMAs but above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to point downwards with the histogram growing in the negative zone. The ADX is now favoring the Bears but suggests loss of overall momentum. The Parabolic SAR continues to give out its Sell signal with a SL now pegged at 6160.
5) Considering the above, our trading plan for the day is as under.
a) Around 5995 we will open fresh short positions with a SL of 6015 and a target of 5900. We will add to these short positions only below 5885.
b) Around 5895 we will open fresh long positions with a SL of 5885 and a target of 5945. We will add to these long positions only above 6015.
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, Bears snatched back the advantage from the Bulls, and pushed over the Bulls out of their safety zone on the Elder Ray. The Nifty opened with a positive gap of 11 points, made a quick high of 6011 and then started getting sold off. Once it broke the key support levels, it broke even the last swing lows of 5937. The Nifty made a low of 5916 before closing at 5939 with a loss of 47 points. Our trading plan(b) got triggered and would have made us a quick 15 to 20 points profit, but looking at the market internals at that point of time, we preferred not to trade as the risk perception of that trade was too much.
1) The Elder Ray readings : Bull Power reduces from +43 to -35 Bear Power rises from -88 to -129 indicating that the Bulls have now lost their footing and the Bears are growing stronger. For today, the Bulls need to overcome the levels of 6030 to regain their lost grounds whereas the Bears need to breach the levels of 5900 to maintain their downwards momentum.
2) The fast stochastics are already in the oversold zone and the slow stochastics are following close behind and pointing downwards.
3) The Nifty has closed below all its key EMAs but above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to point downwards with the histogram growing in the negative zone. The ADX is now favoring the Bears but suggests loss of overall momentum. The Parabolic SAR continues to give out its Sell signal with a SL now pegged at 6160.
5) Considering the above, our trading plan for the day is as under.
a) Around 5995 we will open fresh short positions with a SL of 6015 and a target of 5900. We will add to these short positions only below 5885.
b) Around 5895 we will open fresh long positions with a SL of 5885 and a target of 5945. We will add to these long positions only above 6015.
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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