Carnage continues on the Nifty, as Bears go on rampage. Red Friday on the cards.
In our yesterday's post, "Still looking Bearish", we had suggested that there would be more pain ahead for the Bulls, and that is exactly what happened. The Nifty opened with a whopping 68 point negative gap at 5754 and right from the word go, the Bulls stamped their authority. The Nifty remained under selling pressure making a low of 5646 before closing at 5656 with a huge loss of 166 points. We could manage to book a profit of 38 points in our intraday trade taken yesterday, and we had to modify our trading plan for that.
1) The Elder Ray readings : Bull Power reduces from -28 to -73 Bear Power rises from -79 to -182 indicating that the Bears are now in the driving seat with the Bulls hurt badly. For today, the Bulls need to overcome the levels of 5795 to regain their lost grounds whereas the Bears need to breach the levels of 5610 to maintain their downwards momentum.
2) The stochastics are in the oversold zone now and are pointing downwards.
3) The nifty has closed below all its key DMAs and also below all its key EMAs.
4) In the above chart, the volumes have risen with the fall in the Nifty indicating that the fall may continue. The MACD is in the negative and is now pointing downwards, indicating further downsides. The ADX is showing strong favor for the Bears. The Parabolic SAR has now turned into a Sell signal with the SL at 5863.
5) Considering the above, our trading plan for the day is as under.
a) Below 5600, we will open fresh short positions with a SL of 5625 and a target of 5500. We will refrain from any further trading for the day.
b) We will not even think of opening any intraday long positions at any levels.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post, "Still looking Bearish", we had suggested that there would be more pain ahead for the Bulls, and that is exactly what happened. The Nifty opened with a whopping 68 point negative gap at 5754 and right from the word go, the Bulls stamped their authority. The Nifty remained under selling pressure making a low of 5646 before closing at 5656 with a huge loss of 166 points. We could manage to book a profit of 38 points in our intraday trade taken yesterday, and we had to modify our trading plan for that.
1) The Elder Ray readings : Bull Power reduces from -28 to -73 Bear Power rises from -79 to -182 indicating that the Bears are now in the driving seat with the Bulls hurt badly. For today, the Bulls need to overcome the levels of 5795 to regain their lost grounds whereas the Bears need to breach the levels of 5610 to maintain their downwards momentum.
2) The stochastics are in the oversold zone now and are pointing downwards.
3) The nifty has closed below all its key DMAs and also below all its key EMAs.
4) In the above chart, the volumes have risen with the fall in the Nifty indicating that the fall may continue. The MACD is in the negative and is now pointing downwards, indicating further downsides. The ADX is showing strong favor for the Bears. The Parabolic SAR has now turned into a Sell signal with the SL at 5863.
5) Considering the above, our trading plan for the day is as under.
a) Below 5600, we will open fresh short positions with a SL of 5625 and a target of 5500. We will refrain from any further trading for the day.
b) We will not even think of opening any intraday long positions at any levels.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.