Nifty keeps on falling unabated. Futile to look out for supports. Sell on rise.
As discussed on Friday, the Nifty was posed undecided at the start of the trading session. The Nifty opened with a 22 point positive gap up at 5750. For the first three hours of the trading session, the Nifty traded with slight bullish traits, remaining above 5700 after having made a high of 5762 and barely moving into the red anytime during those 3 hours. Post that however, the Nifty again found direction on the down side and hit a newer recent low at 5649 in the wee hours of trade, before closing at 5678, with a loss of 50 points. We took a counter trend trade and booked out with a loss of 12 points well before our SL was hit.
Summary : Our question of Bullish recovery or a eyewash? was answered on Friday, with the Nifty posing even more bearish. On a positional basis, it would be futile to find support levels until they themselves emerge. Bounces if any could be used for intraday gains, but should be effectively used to build short positions.
1) The Elder Ray readings : Bull Power reduces from -54 to -74 Bear Power rises from -186 to -187, indicating that the Bulls continue to lose strength in this bearish driven market. For today, the Bulls need to overcome the levels of 5810 to regain their lost grounds, whereas the Bears need to breach the levels of 5620 to maintain their downwards momentum.
2) The stochastics continue to remain in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs. A few more closes below 5854 will push the Nifty into a longer term bearish phase.
4) In the above chart, the volumes have reduced with the fall in the Nifty indicating that the fall may pause for now. The MACD continues to point downwards with the histogram too growing in the negative. The ADX is suggesting a loss of momentum for the bears, but is still favoring the down move. The Parabolic SAR continues to give out its sell signal with the SL now shifted to 5958.
5) Considering the above, our trading plan for the day is as under.
a) Around 5730 we will open fresh short positions with a SL of 5750 and a target of 5640. We will add to these short positions only below 5610.
b) Around 5625 we will open fresh long positions with a SL of 5610 and a target of 5695. We will add to these long positions only above 5750.
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, the Nifty was posed undecided at the start of the trading session. The Nifty opened with a 22 point positive gap up at 5750. For the first three hours of the trading session, the Nifty traded with slight bullish traits, remaining above 5700 after having made a high of 5762 and barely moving into the red anytime during those 3 hours. Post that however, the Nifty again found direction on the down side and hit a newer recent low at 5649 in the wee hours of trade, before closing at 5678, with a loss of 50 points. We took a counter trend trade and booked out with a loss of 12 points well before our SL was hit.
Summary : Our question of Bullish recovery or a eyewash? was answered on Friday, with the Nifty posing even more bearish. On a positional basis, it would be futile to find support levels until they themselves emerge. Bounces if any could be used for intraday gains, but should be effectively used to build short positions.
1) The Elder Ray readings : Bull Power reduces from -54 to -74 Bear Power rises from -186 to -187, indicating that the Bulls continue to lose strength in this bearish driven market. For today, the Bulls need to overcome the levels of 5810 to regain their lost grounds, whereas the Bears need to breach the levels of 5620 to maintain their downwards momentum.
2) The stochastics continue to remain in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs. A few more closes below 5854 will push the Nifty into a longer term bearish phase.
4) In the above chart, the volumes have reduced with the fall in the Nifty indicating that the fall may pause for now. The MACD continues to point downwards with the histogram too growing in the negative. The ADX is suggesting a loss of momentum for the bears, but is still favoring the down move. The Parabolic SAR continues to give out its sell signal with the SL now shifted to 5958.
5) Considering the above, our trading plan for the day is as under.
a) Around 5730 we will open fresh short positions with a SL of 5750 and a target of 5640. We will add to these short positions only below 5610.
b) Around 5625 we will open fresh long positions with a SL of 5610 and a target of 5695. We will add to these long positions only above 5750.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Waiting for a pause in the current fall in the range of 5635 to 5620 to initiate any longs for intraday
ReplyDeleteOpened intraday long position at 5635 with SL of 5615 as per trading plan (b)
ReplyDeleteExited short positions at 5640 with a small profit of 5 points.
ReplyDeleteNo point in sticking to positions that are not even showing initial signs of strength
Opened fresh short position at 5620 as per part b of trading plan (a)
ReplyDelete