After multiple failed attempts of recovery, Bears make merry on the bourses.
As discussed yesterday in our post Bull fail yet again, Bears drove in their advantage as the Nifty collapsed. The Nifty opened with a negative gap of 29 points at 5849, failed to bridge the gap at 5868 and got sold off. During the day, there were many attempts by the Bulls for recovery. We saw a intraday rally of 50 points from the lows at one point of time. However, in the end, the Bears prevailed and took the Nifty below 5800 to make a low of 5780 before closing at 5788. In all this mayhem, we were able to book a profit of 15 points in two trades taken.
1) The Elder Ray readings : Bull Power reduces from -36 to -74 Bear Power rises from -110 to -162 indicating that the Bears are now really at advantage and the Bulls need to wake up now. For today, the Bulls need to overcome the levels of 5925 to regain their lost grounds whereas the Bears need to breach the levels of 5755 to maintain their downwards momentum.
2) The stochastics remain in the oversold zone confirming the Bearish momentum.
3) The Nifty has now closed below all its key EMAs and also below all its key DMAs.
4) In the above chart the volumes have increased with the rise in the Nifty indicating that the downmove may continue. The MACD is now going into the negative with the histogram also growing in the negative zone. The ADX is suggesting bottoming out of the overall momentum with a favor to the Bears. The Parabolic SAR continues with its Sell signal with the SL now pegged at 6009.
5) Considering the above, our trading plan for the day is as under.
a) Around 5735 we will open fresh long positions with a SL of 5715 and a target of 5810. We will add to these long positions only above 5840.
b) Around 5825 we will open fresh short positions with a SL of 5845 and a target of 5740. We will add to these short positions only below 5715.
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 in our post Bull fail yet again, Bears drove in their advantage as the Nifty collapsed. The Nifty opened with a negative gap of 29 points at 5849, failed to bridge the gap at 5868 and got sold off. During the day, there were many attempts by the Bulls for recovery. We saw a intraday rally of 50 points from the lows at one point of time. However, in the end, the Bears prevailed and took the Nifty below 5800 to make a low of 5780 before closing at 5788. In all this mayhem, we were able to book a profit of 15 points in two trades taken.
1) The Elder Ray readings : Bull Power reduces from -36 to -74 Bear Power rises from -110 to -162 indicating that the Bears are now really at advantage and the Bulls need to wake up now. For today, the Bulls need to overcome the levels of 5925 to regain their lost grounds whereas the Bears need to breach the levels of 5755 to maintain their downwards momentum.
2) The stochastics remain in the oversold zone confirming the Bearish momentum.
3) The Nifty has now closed below all its key EMAs and also below all its key DMAs.
4) In the above chart the volumes have increased with the rise in the Nifty indicating that the downmove may continue. The MACD is now going into the negative with the histogram also growing in the negative zone. The ADX is suggesting bottoming out of the overall momentum with a favor to the Bears. The Parabolic SAR continues with its Sell signal with the SL now pegged at 6009.
5) Considering the above, our trading plan for the day is as under.
a) Around 5735 we will open fresh long positions with a SL of 5715 and a target of 5810. We will add to these long positions only above 5840.
b) Around 5825 we will open fresh short positions with a SL of 5845 and a target of 5740. We will add to these short positions only below 5715.
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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