Nifty holds on to key supports, as the Bears stage a comeback. Equilibrium entered.
In our yesterday's post, we had suggested that the Nifty still retained bullish traits. However, the Nifty chose to do otherwise as the Bulls took the back seat. The Nifty opened gap down (46 points) at 5812 and then kept on trading in the negative for the entire trading session. The Nifty closed at 5771 with a loss of 87 points after making a low of 5760. We took one trade in the long direction, which failed, and booked out with a loss of 20 points.
1) The Elder Ray readings : Bull Power reduces from +124 to +40 Bear Power rises from +77 to -14 indicating that the Bears have now recovered and this has got the Nifty back into equilibrium. For today, the Bulls need to overcome the levels of 5815 to maintain their upwards momentum whereas the Bears need to breach the levels of 5755 to maintain their downwards momentum.
2) The stochastics are just out of the oversold zone and are pointing downwards.
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 stagnated with the fall in the Nifty, indicating lack of participation in this fall. The MACD continues to rise from the negative zone with the histogram remaining in the positive. The ADX is suggesting total equilibrium in the market, with all three lines converging. The Parabolic SAR continues with its buy signal with the SL now at 5599.
5) Considering the above, our trading plan for the day is as under
a) Around 5715 we will open fresh long positions with a SL of 5695 and a target of 5815. We will add to these long positions only above 5845.
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 5695.
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, we had suggested that the Nifty still retained bullish traits. However, the Nifty chose to do otherwise as the Bulls took the back seat. The Nifty opened gap down (46 points) at 5812 and then kept on trading in the negative for the entire trading session. The Nifty closed at 5771 with a loss of 87 points after making a low of 5760. We took one trade in the long direction, which failed, and booked out with a loss of 20 points.
1) The Elder Ray readings : Bull Power reduces from +124 to +40 Bear Power rises from +77 to -14 indicating that the Bears have now recovered and this has got the Nifty back into equilibrium. For today, the Bulls need to overcome the levels of 5815 to maintain their upwards momentum whereas the Bears need to breach the levels of 5755 to maintain their downwards momentum.
2) The stochastics are just out of the oversold zone and are pointing downwards.
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 stagnated with the fall in the Nifty, indicating lack of participation in this fall. The MACD continues to rise from the negative zone with the histogram remaining in the positive. The ADX is suggesting total equilibrium in the market, with all three lines converging. The Parabolic SAR continues with its buy signal with the SL now at 5599.
5) Considering the above, our trading plan for the day is as under
a) Around 5715 we will open fresh long positions with a SL of 5695 and a target of 5815. We will add to these long positions only above 5845.
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 5695.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir
ReplyDeletewas it a no trade day?
Shivam,
ReplyDeleteNo it was not. We did short at the morning and again in the afternoon and have booked 30 points in each trade.
Longs above 5845 were not done as it came late in the day.
Could not update our trades in the live markets due to some technical issue with blogger.