Nifty facing roadblocks ahead. Bears need to act soon, else trend reversal possible.
As discussed yesterday, it was Expiry Jitters all over the bourses. In what seemed to be a trend reversal, the Nifty opened with a positive gap of 32 points at 5317 and made a low of 5303 in the first hour of trade. From thereon, the Nifty never looked like falling and in a sustained bullish trading session, the Nifty made a high of 5429 late in the day before closing at 5409. We had decided not to trade. However, we took a small trade on the short side and lost 41 points on 4 lots traded.
1) The Elder Ray readings : Bull Power rises from -142 to -24 Bear Power reduces from -341 to -150 indicating that the Bears are still in control of the Nifty. For today, the Bulls need to overcome the levels of 5445 to regain their lost grounds whereas the Bears need to breach the levels of 5295 to maintain their downwards momentum.
2) The stochastics are just out of the oversold zone and are pointing upwards.
3) The Nifty has closed above its 8EMA, but has closed below its 13EMA and 21EMA. The Nifty has also closed below all its key DMAs.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD continues to point downwards as yet, with the histogram still remaining in the negative. The ADX is suggesting a equilibrium with a slight favor in the bearish momentum. The Parabolic SAR continues with its sell signal with the SL shifted down to 5517.
5) Considering the above, our trading plan for the day is as under.
a) Around 5425 we will open fresh short positions with a SL of 5445 and a target of 5340. We will add to these short positions only below 5295.
b) Around 5315 we will open fresh long positions with a SL of 5295 and a target of 5390. We will add to these long positions only above 5445.
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, it was Expiry Jitters all over the bourses. In what seemed to be a trend reversal, the Nifty opened with a positive gap of 32 points at 5317 and made a low of 5303 in the first hour of trade. From thereon, the Nifty never looked like falling and in a sustained bullish trading session, the Nifty made a high of 5429 late in the day before closing at 5409. We had decided not to trade. However, we took a small trade on the short side and lost 41 points on 4 lots traded.
1) The Elder Ray readings : Bull Power rises from -142 to -24 Bear Power reduces from -341 to -150 indicating that the Bears are still in control of the Nifty. For today, the Bulls need to overcome the levels of 5445 to regain their lost grounds whereas the Bears need to breach the levels of 5295 to maintain their downwards momentum.
2) The stochastics are just out of the oversold zone and are pointing upwards.
3) The Nifty has closed above its 8EMA, but has closed below its 13EMA and 21EMA. The Nifty has also closed below all its key DMAs.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD continues to point downwards as yet, with the histogram still remaining in the negative. The ADX is suggesting a equilibrium with a slight favor in the bearish momentum. The Parabolic SAR continues with its sell signal with the SL shifted down to 5517.
5) Considering the above, our trading plan for the day is as under.
a) Around 5425 we will open fresh short positions with a SL of 5445 and a target of 5340. We will add to these short positions only below 5295.
b) Around 5315 we will open fresh long positions with a SL of 5295 and a target of 5390. We will add to these long positions only above 5445.
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 short positions at 5430 as per trading plan (a) with a SL of 5450
ReplyDeleteBooked out with a loss of 21 points as SL hit at 5350
ReplyDelete