Bulls recover their lost grounds. Nifty faces road blocks ahead. Today's close critical.
As discussed yesterday, the Nifty was still consolidating after the major fall of about 600 points in the last 11 trading sessions. The Nifty opened with a 12 point negative gap down at 5600 and then traded bearish for the initial hour making a low of 5579. But after that, slow and steady buying pressure saw the Nifty not only take out the day's highs but also make a new high for the week at 5705 before closing at 5699. We took a trade on the short side and lost 20 points in that trade.
1) The Elder Ray readings : Bull Power rises from -56 to +5 Bear Power reduces from -143 to -121 indicating that though the Bulls have recovered all their lost grounds, they have their work cut out yet as the Bears are sitting pretty tight in their safe zone. For today, the Bulls need to overcome the levels of 5710 to maintain their upwards momentum whereas the Bears need to breach the levels of 5575 to maintain their downwards momentum.
2) The stochastics are looking upwards to break out of the oversold zone.
3) The Nifty has closed above its 8EMA but has closed below its other key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have remained high with the rise in the Nifty indicating that the up move may continue. The MACD is still in the negative but is attempting to rise. The Histogram also in the negative is attempting to rise. The ADX is showing almost equilibrium between the Bulls and the Bears while pointing towards reduced overall momentum. The Parabolic SAR continues with its sell signal with a SL at 5705.
5) Considering the above, our trading plan for the day is as under.
a) Below 5710 we will open fresh short positions with a SL of 5735 and a target of 5650. We will add to these short positions only below 5620.
b) Around 5635 we will open fresh long positions with a SL of 5615 and a target of 5685. We will add to these long positions only above 5735.
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, the Nifty was still consolidating after the major fall of about 600 points in the last 11 trading sessions. The Nifty opened with a 12 point negative gap down at 5600 and then traded bearish for the initial hour making a low of 5579. But after that, slow and steady buying pressure saw the Nifty not only take out the day's highs but also make a new high for the week at 5705 before closing at 5699. We took a trade on the short side and lost 20 points in that trade.
1) The Elder Ray readings : Bull Power rises from -56 to +5 Bear Power reduces from -143 to -121 indicating that though the Bulls have recovered all their lost grounds, they have their work cut out yet as the Bears are sitting pretty tight in their safe zone. For today, the Bulls need to overcome the levels of 5710 to maintain their upwards momentum whereas the Bears need to breach the levels of 5575 to maintain their downwards momentum.
2) The stochastics are looking upwards to break out of the oversold zone.
3) The Nifty has closed above its 8EMA but has closed below its other key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have remained high with the rise in the Nifty indicating that the up move may continue. The MACD is still in the negative but is attempting to rise. The Histogram also in the negative is attempting to rise. The ADX is showing almost equilibrium between the Bulls and the Bears while pointing towards reduced overall momentum. The Parabolic SAR continues with its sell signal with a SL at 5705.
5) Considering the above, our trading plan for the day is as under.
a) Below 5710 we will open fresh short positions with a SL of 5735 and a target of 5650. We will add to these short positions only below 5620.
b) Around 5635 we will open fresh long positions with a SL of 5615 and a target of 5685. We will add to these long positions only above 5735.
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) triggered. Opened fresh short position at 5712 with a SL of 5735
ReplyDeleteLost 23 points as SL hit at 5735
ReplyDelete