Bulls recover post Bearish assertion. No levels sacrosanct for the day. Literally.
As discussed yesterday, we expected a Bearish assertion. The Bears did assert themselves. The Nifty opened with a whopping negative gap down of 54 points at 5233. After whipsawing between 5233 and 5192 for the first hour of trade, the Nifty slipped below our identified level of 5180 and went down straight to 5119, from where, the Nifty recovered and went over to cross the opening highs and climb even further to make a intraday high of 5318 before closing at 5285. We took three trades and could garner a profit of 115 points in those trades.
Summary : Although the Bulls have staged a smart recovery of sorts, the overall trend and momentum is still favoring the Bears. Having said that, for today, given that we have a series expiry on hand, no levels are sacrosanct.
1) The Elder Ray readings : Bull Power reduces from -62 to -142 Bear Power rises from -215 to -341 indicating that despite the recovery, the Bulls have lost further grounds. For today, the Bulls need to overcome the levels of 5430 to regain their lost grounds whereas the Bears need to breach the levels of 5085 to maintain their downwards momentum.
2) The stochastics are just out of the oversold zone and are pointing across each other.
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 Nifty closing almost flat, indicating huge level of anxiety amongst traders. The MACD continues to point downwards, the histogram continues to remain stagnant, but in the negative. The ADX is suggesting huge rise in the bearish momentum and a fall in the bullish momentum. The Parabolic SAR continues to give out its sell signal with the SL now shifted down to 5561.
5) Considering the above, we have decided to step aside for the day and refrain from trading. It is better to save the profit than indulging into impulsive trades.
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, we expected a Bearish assertion. The Bears did assert themselves. The Nifty opened with a whopping negative gap down of 54 points at 5233. After whipsawing between 5233 and 5192 for the first hour of trade, the Nifty slipped below our identified level of 5180 and went down straight to 5119, from where, the Nifty recovered and went over to cross the opening highs and climb even further to make a intraday high of 5318 before closing at 5285. We took three trades and could garner a profit of 115 points in those trades.
Summary : Although the Bulls have staged a smart recovery of sorts, the overall trend and momentum is still favoring the Bears. Having said that, for today, given that we have a series expiry on hand, no levels are sacrosanct.
1) The Elder Ray readings : Bull Power reduces from -62 to -142 Bear Power rises from -215 to -341 indicating that despite the recovery, the Bulls have lost further grounds. For today, the Bulls need to overcome the levels of 5430 to regain their lost grounds whereas the Bears need to breach the levels of 5085 to maintain their downwards momentum.
2) The stochastics are just out of the oversold zone and are pointing across each other.
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 Nifty closing almost flat, indicating huge level of anxiety amongst traders. The MACD continues to point downwards, the histogram continues to remain stagnant, but in the negative. The ADX is suggesting huge rise in the bearish momentum and a fall in the bullish momentum. The Parabolic SAR continues to give out its sell signal with the SL now shifted down to 5561.
5) Considering the above, we have decided to step aside for the day and refrain from trading. It is better to save the profit than indulging into impulsive trades.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Shorted Nifty at 5350 right now.
ReplyDeleteNot using futures, but using 5300PE as the vehicle of trade.
Bought 200 quantity 5300PE at 10.60 and will hold till expiry or 32 which ever is earlier.
Risk is 2200 rupees at the most.
Lost 2200 rs. which turns equivalent to a loss of 10 points on the Nifty per lot.
ReplyDelete