With the first yearly close below 5300, Bears have announced their intentions.
As discussed yesterday, "Bulls had regained marginally" and that is where they stopped and yet again frittered away all their gains. The Nifty opened with a whopping negative gap down of 50 points at 5427 and immediately drifted down. The volatility increased as the Nifty found some footing at 5310 levels from where it staged a bounce of about 40 points during the day. However, that was utilized by the Bears as a selling point and the Nifty sold off to make a low of 5274 before closing at 5287 with a huge loss of 189 points. We took one trade in the short direction and booked a profit of 60 points in that trade. Also we squared off our positional short position taken on Friday and booked a profit of 100 points in that trade.
Summary : The Monthly low of 5254 is in real danger now. If the Bears are able to breach that, then the Nifty can plunge another 200 points. However, considering that expiry is just about two trading sessions away, there could be some index management thrown in.
1) The Elder Ray readings : Bull Power reduces from +6 to -62 Bear Power rises from -68 to -215 indicating that the Bears have now stepped on the accelerator. For today, the Bulls need to overcome the levels of 5465 to regain their lost grounds whereas the Bears need to breach the levels of 5275 to maintain their downwards momentum.
2) The fast stochastics have plunged into the oversold zone, but the slow stochastics are still in the neutral zone, indicating some more room for a down move.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD is showing yet another aborted breakout, and continues to point downwards. The histogram has also again started growing in the negative zone. The ADX is now again favoring the Bears. The Parabolic SAR continues to show its sell signal with the SL now shifted down to 5600.
5) Considering the above, our trading plan for the day is as under.
a) Around 5315 we will open fresh short positions with a SL of 5340 and a target of 5200. We will add to these short positions only below 5180.
b) Around 5195 we will open fresh long positions with a SL of 5180 and a target of 5285. We will add to these long positions only above 5340.
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, "Bulls had regained marginally" and that is where they stopped and yet again frittered away all their gains. The Nifty opened with a whopping negative gap down of 50 points at 5427 and immediately drifted down. The volatility increased as the Nifty found some footing at 5310 levels from where it staged a bounce of about 40 points during the day. However, that was utilized by the Bears as a selling point and the Nifty sold off to make a low of 5274 before closing at 5287 with a huge loss of 189 points. We took one trade in the short direction and booked a profit of 60 points in that trade. Also we squared off our positional short position taken on Friday and booked a profit of 100 points in that trade.
Summary : The Monthly low of 5254 is in real danger now. If the Bears are able to breach that, then the Nifty can plunge another 200 points. However, considering that expiry is just about two trading sessions away, there could be some index management thrown in.
1) The Elder Ray readings : Bull Power reduces from +6 to -62 Bear Power rises from -68 to -215 indicating that the Bears have now stepped on the accelerator. For today, the Bulls need to overcome the levels of 5465 to regain their lost grounds whereas the Bears need to breach the levels of 5275 to maintain their downwards momentum.
2) The fast stochastics have plunged into the oversold zone, but the slow stochastics are still in the neutral zone, indicating some more room for a down move.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD is showing yet another aborted breakout, and continues to point downwards. The histogram has also again started growing in the negative zone. The ADX is now again favoring the Bears. The Parabolic SAR continues to show its sell signal with the SL now shifted down to 5600.
5) Considering the above, our trading plan for the day is as under.
a) Around 5315 we will open fresh short positions with a SL of 5340 and a target of 5200. We will add to these short positions only below 5180.
b) Around 5195 we will open fresh long positions with a SL of 5180 and a target of 5285. We will add to these long positions only above 5340.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh long position at 5198 as per trading plan(b) with a SL of 5180
ReplyDeletesir as we have gone below 5200 do you see some chances of longs
ReplyDeleteor as on previous days we go with the trend
plz advice
Booked out with a quick profit of 20 points at 5218
ReplyDeleteOpened fresh short positions at 5182 with a SL of 5212 as per part b of trading plan(a)
ReplyDeleteBooked out at 5122 with a profit of another 60 points.
ReplyDeleteThank you very much to the markets.
Trading plan (b) now works to the dot.
ReplyDeleteRegret we did not take this trade.
Trading plan (a) triggers now. Opened fresh shorts at 5312 with SL of 5332
ReplyDeleteBooked out of short positions at 5277 booking a profit of 35 points.
ReplyDeleteShorted at 5205 and covered at 5112
ReplyDeleteShould have bought at 5130, I too regret I did not go with this trade.
-HC