After two failed attempts, Bulls get support from global cues. Will they make up?
As discussed on Friday, it was sort of a trendsetting weekend. The Nifty opened with a negative gap down of 21 points then traded bearishly for the first hour of trade making a low of 5887. Then the Bulls took over and pulled the Nifty above 5900 and then 5950 making a high of 5973, which was right next to our selling levels. From there the Nifty got sold off heavily to breach the intra-day lows and make a new low at 5871 before closing at 5881. Our trading plan(a) triggered and we booked out with a 40 point profit in just one single trade.
1) The Elder Ray readings : Bull Power rises from -43 to -10 Bear Power reduces from -130 to -111, indicating that the Bulls are nearing their safety zone and have a good chance of staging a comeback. The Bears are still stronger though. For today, the Bulls need to overcome the levels of 5970 to regain their lost grounds whereas the Bears need to breach the levels of 5860 to maintain their downwards momentum.
2) The stochastics are now well and deep into the oversold zone.
3) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. It has however, closed above its 200DMA (5790)
4) In the above chart, the volumes have remained stagnant with the fall in the Nifty indicating that the down move may continue. The MACD is threatening to go negative, with the histogram continuing to remain negative. The ADX is suggesting a loss of momentum for the Bears but is still favoring them. The Parabolic SAR continues with its sell signal with the SL now at 6071.
5) Considering the above, our trading plan for the day is as under.
a) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5835. We will add to these short positions only below 5810.
b) Around 5825 we will open fresh long positions with a SL of 5810 and a target of 5910. We will add to these long positions only above 5955.
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, it was sort of a trendsetting weekend. The Nifty opened with a negative gap down of 21 points then traded bearishly for the first hour of trade making a low of 5887. Then the Bulls took over and pulled the Nifty above 5900 and then 5950 making a high of 5973, which was right next to our selling levels. From there the Nifty got sold off heavily to breach the intra-day lows and make a new low at 5871 before closing at 5881. Our trading plan(a) triggered and we booked out with a 40 point profit in just one single trade.
1) The Elder Ray readings : Bull Power rises from -43 to -10 Bear Power reduces from -130 to -111, indicating that the Bulls are nearing their safety zone and have a good chance of staging a comeback. The Bears are still stronger though. For today, the Bulls need to overcome the levels of 5970 to regain their lost grounds whereas the Bears need to breach the levels of 5860 to maintain their downwards momentum.
2) The stochastics are now well and deep into the oversold zone.
3) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. It has however, closed above its 200DMA (5790)
4) In the above chart, the volumes have remained stagnant with the fall in the Nifty indicating that the down move may continue. The MACD is threatening to go negative, with the histogram continuing to remain negative. The ADX is suggesting a loss of momentum for the Bears but is still favoring them. The Parabolic SAR continues with its sell signal with the SL now at 6071.
5) Considering the above, our trading plan for the day is as under.
a) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5835. We will add to these short positions only below 5810.
b) Around 5825 we will open fresh long positions with a SL of 5810 and a target of 5910. We will add to these long positions only above 5955.
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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