Despite yesterday's fall, Nifty holds on to key supports and retains bullish stance.
In our yesterday's post, we suggested Nifty bullish only above 5990. However, that level never came in the trade yesterday. The Nifty opened with a massive negative gap of 100 points at 5931 and almost immediately made the day's low of 5911, after which it crawled back and sustained all the selling pressure, making the day's high of 5966 in the last hour of trade before closing at 5955. Our pre-market trading plans went out of the window right after the gap down opening. However, we took 3 trades in the long direction during the day, and booked a profit of 55 points.
1) The Elder Ray readings : Bull Power reduces from +160 to +77 Bear Power rises from +103 to +22, indicating that the Bears have stopped short and not taken the full advantage of the gap down opening yesterday. For today, the Bulls need to overcome the levels of 5980 to maintain their upwards momentum whereas the Bears need to breach the levels of 5900 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue. The MACD continues to point upwards and has now almost reached the positive zone. The Histogram continues to remain in the positive. The ADX is suggesting a loss of momentum for the Bulls and a rise in momentum for the Bears. However, it is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now pegged at 5748.
5) Considering the above, our trading plan for the day is as under.
a) Around 5940 we will open fresh long positions with a SL of 5920 and a target of 6000. We will add to these long positions only above 6025.
b) Around 6010 we will open fresh short positions with a SL of 6025 and a target of 5965. We will add to these short positions only below 5920.
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 suggested Nifty bullish only above 5990. However, that level never came in the trade yesterday. The Nifty opened with a massive negative gap of 100 points at 5931 and almost immediately made the day's low of 5911, after which it crawled back and sustained all the selling pressure, making the day's high of 5966 in the last hour of trade before closing at 5955. Our pre-market trading plans went out of the window right after the gap down opening. However, we took 3 trades in the long direction during the day, and booked a profit of 55 points.
1) The Elder Ray readings : Bull Power reduces from +160 to +77 Bear Power rises from +103 to +22, indicating that the Bears have stopped short and not taken the full advantage of the gap down opening yesterday. For today, the Bulls need to overcome the levels of 5980 to maintain their upwards momentum whereas the Bears need to breach the levels of 5900 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue. The MACD continues to point upwards and has now almost reached the positive zone. The Histogram continues to remain in the positive. The ADX is suggesting a loss of momentum for the Bulls and a rise in momentum for the Bears. However, it is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now pegged at 5748.
5) Considering the above, our trading plan for the day is as under.
a) Around 5940 we will open fresh long positions with a SL of 5920 and a target of 6000. We will add to these long positions only above 6025.
b) Around 6010 we will open fresh short positions with a SL of 6025 and a target of 5965. We will add to these short positions only below 5920.
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 (a) has triggered. Opened fresh long positions at 5938 with a SL 5918
ReplyDeleteSIR
ReplyDeletewhat are the reasons for this sudden fall in nifty despite govt steps to boost fdi
As technical traders, we do not attempt to find reasons. We follow price action.
DeleteSquared off long position at 5978 booking profit of 40 points
ReplyDeleteSIR
ReplyDeletePlease enroll me.
Ravi
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