Bears stall the attempted bounce on the Nifty. But they need to breach key supports.
As discussed yesterday, despite global cues supporting the Bulls, every bounce back attempted was stalled and got sold off immediately. However, the Nifty respected key support levels, and showed signs of consolidation. The Nifty opened with a positive up gap of 27 points rallied to make a high of 5932 and then traded bearishly to make a low of 5857 and closed flat at 5878 with a loss of just 3 points. None of our trading plans got triggered and we were happy to sit on the sidelines and watch the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power reduces from -10 to -36 Bear Power also reduces a bit from -111 to -110 indicating that the Bulls are still out of their safe zone as the Bears are getting ready to strike. For today, the Bulls need to overcome the levels of 5955 to regain their lost grounds whereas the Bears need to breach the levels of 5845 to retain their downwards momentum.
2) The stochastics continue to remain in the oversold zone confirming the bearish trend.
3) The Nifty has closed yet again below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA(5793).
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that supports may be round the corner. The MACD has turned negative, as the histogram starts to rise from the negative zone. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues with its sell signal with the SL now at 6046.
5) Considering the above, our trading plan for the day is as under.
a) Around 5825 we will open fresh long positions with a SL of 5805 and a target of 5895. We will add to these long positions only above 5950.
b) Around 5935 we will open fresh short positions with a SL of 5950 and a target of 5840. We will add to these short positions only below 5805.
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, despite global cues supporting the Bulls, every bounce back attempted was stalled and got sold off immediately. However, the Nifty respected key support levels, and showed signs of consolidation. The Nifty opened with a positive up gap of 27 points rallied to make a high of 5932 and then traded bearishly to make a low of 5857 and closed flat at 5878 with a loss of just 3 points. None of our trading plans got triggered and we were happy to sit on the sidelines and watch the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power reduces from -10 to -36 Bear Power also reduces a bit from -111 to -110 indicating that the Bulls are still out of their safe zone as the Bears are getting ready to strike. For today, the Bulls need to overcome the levels of 5955 to regain their lost grounds whereas the Bears need to breach the levels of 5845 to retain their downwards momentum.
2) The stochastics continue to remain in the oversold zone confirming the bearish trend.
3) The Nifty has closed yet again below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA(5793).
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that supports may be round the corner. The MACD has turned negative, as the histogram starts to rise from the negative zone. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues with its sell signal with the SL now at 6046.
5) Considering the above, our trading plan for the day is as under.
a) Around 5825 we will open fresh long positions with a SL of 5805 and a target of 5895. We will add to these long positions only above 5950.
b) Around 5935 we will open fresh short positions with a SL of 5950 and a target of 5840. We will add to these short positions only below 5805.
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 intraday long position at 5825 with a SL of 5805
ReplyDeleteNifty not performing as expected. Squared off long position at 5815 booking a small loss of 10 points.
ReplyDeletePart b of trading plan (b) triggered. Opened fresh short position at 5810 with a SL of 5835 now.
ReplyDeleteBooked out intraday shorts at 5885 with a profit of 25 points.
ReplyDeleteToday's gain 15 points in two trades.