Nifty attempted a pullback and failed at first resistance. Choppy markets expected.
In our Friday's post, "Bulls get mauled", we were expecting a red Friday, and were waiting for the Nifty to breach 5600 levels. However, that was not to be. The Nifty opened with a bearish undertone at 5640, went down to 5617, pulled back up to 5686 before closing at 5668 with a minor gain of 12 points. We sat at the sidelines watching the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power reduces from -73 to -119 Bear Power rises from -182 to -188 indicating that though the attempted pullback and a positive closing, the Bulls are at the losing end of the sentiment. For today, the Bulls need to overcome the levels of 5790 to regain their lost grounds, whereas the Bears need to breach the levels of 5595 to retain their downwards momentum.
2) The stochastics are in the oversold zone, confirming the bearish undertone.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have increased with the small rise in the Nifty indicating that there could be choppiness in the markets now. The MACD is pointing down in the negative zone with the histogram also growing in the negative zone. The ADX is suggesting a strong favor for the Bears. The Parabolic SAR continues with its sell signal with the SL now at 5858.
5) Considering the above, our trading plan for the day is as under.
a) Around 5690 we will open fresh short positions with a SL of 5715 and a target of 5625. We will add to these short positions only below 5600.
b) Around 5620 we will open fresh long positions with a SL of 5600 and a target of 5665. We will add to these long positions only above 5715.
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 Friday's post, "Bulls get mauled", we were expecting a red Friday, and were waiting for the Nifty to breach 5600 levels. However, that was not to be. The Nifty opened with a bearish undertone at 5640, went down to 5617, pulled back up to 5686 before closing at 5668 with a minor gain of 12 points. We sat at the sidelines watching the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power reduces from -73 to -119 Bear Power rises from -182 to -188 indicating that though the attempted pullback and a positive closing, the Bulls are at the losing end of the sentiment. For today, the Bulls need to overcome the levels of 5790 to regain their lost grounds, whereas the Bears need to breach the levels of 5595 to retain their downwards momentum.
2) The stochastics are in the oversold zone, confirming the bearish undertone.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have increased with the small rise in the Nifty indicating that there could be choppiness in the markets now. The MACD is pointing down in the negative zone with the histogram also growing in the negative zone. The ADX is suggesting a strong favor for the Bears. The Parabolic SAR continues with its sell signal with the SL now at 5858.
5) Considering the above, our trading plan for the day is as under.
a) Around 5690 we will open fresh short positions with a SL of 5715 and a target of 5625. We will add to these short positions only below 5600.
b) Around 5620 we will open fresh long positions with a SL of 5600 and a target of 5665. We will add to these long positions only above 5715.
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 (b) has triggered. Opened long position at 5620 with a SL of 5600
ReplyDeleteNifty not performing as expected. Squared off intraday longs at 5625 with a profit of 5 points.
ReplyDeleteNow waiting for 5600 to be breached to open fresh short positions.
Squared off intraday shorts created at 5605 after Nifty breached 5600 and pulled back, at 5570 locking in a profit of 35 points.
ReplyDelete