Amidst wild swinging volatile moves, the expiry is all set for an adrenaline rush.
As discussed yesterday, there was choppiness before expiry on the bourses. The Nifty opened with a up gap of 19 points at 5628 and then for most of the day traded within a small range between 5600 and 5635. However, during the last hour of trade, the Bears took charge and the Nifty got sold off to make a low of 5579 before closing at 5589 with a loss of 20 points. None of our trading plans got triggered and we were happy sitting out on the sidelines.
1) The Elder Ray reading : Bull Power reduces from -85 to -92 Bear Power also reduces from -181 to -148 indicating that although the Bears have taken it easy for the day, the Bulls have lost further grounds. For today, the Bulls need to overcome the levels of 5705 to regain their lost grounds whereas the Bears need to breach the levels of 5555 to maintain their downwards momentum.
2) The stochastics are well and deep into the oversold zone.
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 decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD continues to point downwards in the negative with the histogram too growing in the negative. The ADX is suggesting loss of momentum for the Bears but is still favoring a downwards move. The Parabolic SAR continues with its sell signal with a SL of 5814.
5) Considering the above, our trading plan for the day is as under.
a) Around 5645 we will open fresh short positions with a SL of 5665 and a target of 5560. We will add to these short positions only below 5520.
b) Around 5540 we will open fresh long positions with a SL of 5520 and a target of 5615. We will add to these long positions only above 5665.
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, there was choppiness before expiry on the bourses. The Nifty opened with a up gap of 19 points at 5628 and then for most of the day traded within a small range between 5600 and 5635. However, during the last hour of trade, the Bears took charge and the Nifty got sold off to make a low of 5579 before closing at 5589 with a loss of 20 points. None of our trading plans got triggered and we were happy sitting out on the sidelines.
1) The Elder Ray reading : Bull Power reduces from -85 to -92 Bear Power also reduces from -181 to -148 indicating that although the Bears have taken it easy for the day, the Bulls have lost further grounds. For today, the Bulls need to overcome the levels of 5705 to regain their lost grounds whereas the Bears need to breach the levels of 5555 to maintain their downwards momentum.
2) The stochastics are well and deep into the oversold zone.
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 decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD continues to point downwards in the negative with the histogram too growing in the negative. The ADX is suggesting loss of momentum for the Bears but is still favoring a downwards move. The Parabolic SAR continues with its sell signal with a SL of 5814.
5) Considering the above, our trading plan for the day is as under.
a) Around 5645 we will open fresh short positions with a SL of 5665 and a target of 5560. We will add to these short positions only below 5520.
b) Around 5540 we will open fresh long positions with a SL of 5520 and a target of 5615. We will add to these long positions only above 5665.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opens right into our selling area. Planning to buy 5700 PE right at the opening with no SL right now, as the investment will be below Rs. 3000 for sure.
ReplyDeleteBought 5700 PE expiring today at 58
ReplyDeleteShorts did not work well today. Booked out at 18 with a loss of 40 points.
ReplyDelete