Nifty looks bearish and all attempts at any bounce may get sold off. 5850 next support.
As discussed on Friday, we saw a Bearish start to the new series of trade. The Nifty opened with a positive gap of 30 points at 5938, made a quick high of 5944 and then immediately slipped off the cliff to make a low 5898 and then kept on making new lows each hour of trade. The Nifty finally closed at 5886 after making the day's low at 5869. There were a couple of sharp bounce backs but both got swiftly sold into.
1) The Elder Ray readings : Bull Power reduces from +29 to -7 Bear Power rises from -66 to -82 indicating that the Bears have now got firmly into the driver's seat and that the Bulls have surrendered their safe zone. For today, the Bulls need to overcome the levels of 5950 to regain their lost grounds whereas the Bears need to breach the Nifty below 5855 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing downwards.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However it has closed above its 100DMA(5861) and 200DMA(5862)
4) In the above chart, the volumes have remained high with the fall in the Nifty indicating that the fall may continue. The MACD has now given out a clear sell signal with the histogram also falling in the negative. The ADX is also suggesting a rise in the bearish momentum and a fall in the bullish momentum. The Parabolic SAR continues with its sell signal with the SL now at 6089.
5) Considering the above, our trading plan for the day is as under.
a) Around 5930 we will open fresh short positions with a SL of 5950 and a target of 5865. We will add to these short positions only below 5845.
b) Around 5855 we will open fresh long positions with a SL of 5845 and a target of 5910. We will add to these long positions only above 5950.
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 on Friday, we saw a Bearish start to the new series of trade. The Nifty opened with a positive gap of 30 points at 5938, made a quick high of 5944 and then immediately slipped off the cliff to make a low 5898 and then kept on making new lows each hour of trade. The Nifty finally closed at 5886 after making the day's low at 5869. There were a couple of sharp bounce backs but both got swiftly sold into.
1) The Elder Ray readings : Bull Power reduces from +29 to -7 Bear Power rises from -66 to -82 indicating that the Bears have now got firmly into the driver's seat and that the Bulls have surrendered their safe zone. For today, the Bulls need to overcome the levels of 5950 to regain their lost grounds whereas the Bears need to breach the Nifty below 5855 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing downwards.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However it has closed above its 100DMA(5861) and 200DMA(5862)
4) In the above chart, the volumes have remained high with the fall in the Nifty indicating that the fall may continue. The MACD has now given out a clear sell signal with the histogram also falling in the negative. The ADX is also suggesting a rise in the bearish momentum and a fall in the bullish momentum. The Parabolic SAR continues with its sell signal with the SL now at 6089.
5) Considering the above, our trading plan for the day is as under.
a) Around 5930 we will open fresh short positions with a SL of 5950 and a target of 5865. We will add to these short positions only below 5845.
b) Around 5855 we will open fresh long positions with a SL of 5845 and a target of 5910. We will add to these long positions only above 5950.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir
ReplyDelete5855 has been reached
Shivam,
ReplyDeleteYes it has reached 5855. But looking at the advance decline and the overall structure of the Nifty, we are not inclined in taking any long positions for the day.
Part b of trading plan (a) triggered.
ReplyDeleteOpened fresh short positions with a SL of 5870
sir
ReplyDeletewhat would be the 1st target shorts taken at 5845
Shivam,
ReplyDelete5810 5795 would be ideal targets.
But part booking at 25 30 points is advised
Squared off short positions at 5828 garnering a profit of 18 points
ReplyDelete