Bulls try hard, but fail to regain their footing. Nifty approaching key support levels.
As discussed yesterday, we saw Bears driving the Nifty all over again. The Nifty opened almost flat, and gained a quick 40 points to make a high of 5982 and traded in the green for most of the trading session yesterday. However, in the afternoon, the Bears took over the control and the Nifty sold off to make yet another swing low of 5910 before closing at 5919. We did not participate in trade as none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from -35 to -46 Bear Power also reduces from -129 to -117 indicating that the Bulls are still out of their safe zone and need to act now before it is too late. For today, the Bulls need to overcome the levels of 6010 to regain their lost grounds whereas the Bears need to breach the levels of 5885 to retain their downwards momentum.
2) The stochastics have just entered the oversold 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 have kept low with the fall in the Nifty indicating that supports may be around the corner. The MACD continues to fall with the histogram continuing to grow in the negative. The ADX is suggesting favor to the Bears in a market where overall momentum is fading. The Parabolic SAR continues with its Sell signal with the SL now pegged at 6145.
5) Considering the above, our trading plan for the day is as under.
a) Around 5940 we will open fresh short positions with a SL of 5965 and a target of 5880. We will add to these short positions only below 5850.
b) Around 5865 we will open fresh long positions with a SL of 5850 and a target of 5940. We will add to these long positions only above 5965.
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, we saw Bears driving the Nifty all over again. The Nifty opened almost flat, and gained a quick 40 points to make a high of 5982 and traded in the green for most of the trading session yesterday. However, in the afternoon, the Bears took over the control and the Nifty sold off to make yet another swing low of 5910 before closing at 5919. We did not participate in trade as none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from -35 to -46 Bear Power also reduces from -129 to -117 indicating that the Bulls are still out of their safe zone and need to act now before it is too late. For today, the Bulls need to overcome the levels of 6010 to regain their lost grounds whereas the Bears need to breach the levels of 5885 to retain their downwards momentum.
2) The stochastics have just entered the oversold 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 have kept low with the fall in the Nifty indicating that supports may be around the corner. The MACD continues to fall with the histogram continuing to grow in the negative. The ADX is suggesting favor to the Bears in a market where overall momentum is fading. The Parabolic SAR continues with its Sell signal with the SL now pegged at 6145.
5) Considering the above, our trading plan for the day is as under.
a) Around 5940 we will open fresh short positions with a SL of 5965 and a target of 5880. We will add to these short positions only below 5850.
b) Around 5865 we will open fresh long positions with a SL of 5850 and a target of 5940. We will add to these long positions only above 5965.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Waiting patiently for our trading plan(a) to get triggered.
ReplyDeleteNifty trading 5 points below our sell level as of now.
Opened fresh short position at NF 5950 (NS 5934) with a SL of 5975 NF (5960 NS)
ReplyDeleteBooked out with a 20 point profit @ 5930 NF
ReplyDelete