Nifty volatility rises as Bulls and Bears fight over the equality. Whipsaws ahead.
As discussed in yesterday's post "Equilibrium tilts Bearish", we had suggested that despite the big downmove, the equilibrium was maintained as Bulls and Bears both were equidistant in their respective safe zones. The Nifty opened with a positive gap of 17 points at 5359 went down in a swift move to 5319 and then quickly got back above 5375 and above 5400. Thereafter, the Nifty traded with extreme volatility and every hour had a 50 point move between the hourly lows and highs. The Nifty closed with a gain of 107 points at 5448 after making a intraday high of 5460. We took a trade on the short side and booked out with a quick profit of 25 points.
1) The Elder Ray readings : Bull Power reduces from +130 to +10 Bear Power rises from -127 to -131 indicating that the Bears are still in control, but the Bulls cannot be ignored as of now. For today, the Bulls need to overcome the levels of 5465 to maintain their upwards momentum whereas the Bears need to breach the levels of 5315 to maintain their downwards momentum.
2) The stochastics are right in the center and are pointing horizontal.
3) The Nifty has closed above its 8EMA but has closed below its 13EMA and 21EMA and also below all its key DMAs.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the rise may continue. The MACD continues to point towards a up move with the histogram also rising. The ADX on the other hand, is indicating a loss of momentum for the bears as well as the bulls. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 5146.
5) Considering the above, our trading plan for the day is as under.
a) Around 5545 we will open fresh short positions with a SL of 5565 and a target of 5400. We will add to these short positions only below 5360.
b) Around 5380 we will open fresh long positions with a SL of 5360 and a target of 5530. We will add to these long positions only above 5565.
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 in yesterday's post "Equilibrium tilts Bearish", we had suggested that despite the big downmove, the equilibrium was maintained as Bulls and Bears both were equidistant in their respective safe zones. The Nifty opened with a positive gap of 17 points at 5359 went down in a swift move to 5319 and then quickly got back above 5375 and above 5400. Thereafter, the Nifty traded with extreme volatility and every hour had a 50 point move between the hourly lows and highs. The Nifty closed with a gain of 107 points at 5448 after making a intraday high of 5460. We took a trade on the short side and booked out with a quick profit of 25 points.
1) The Elder Ray readings : Bull Power reduces from +130 to +10 Bear Power rises from -127 to -131 indicating that the Bears are still in control, but the Bulls cannot be ignored as of now. For today, the Bulls need to overcome the levels of 5465 to maintain their upwards momentum whereas the Bears need to breach the levels of 5315 to maintain their downwards momentum.
2) The stochastics are right in the center and are pointing horizontal.
3) The Nifty has closed above its 8EMA but has closed below its 13EMA and 21EMA and also below all its key DMAs.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the rise may continue. The MACD continues to point towards a up move with the histogram also rising. The ADX on the other hand, is indicating a loss of momentum for the bears as well as the bulls. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 5146.
5) Considering the above, our trading plan for the day is as under.
a) Around 5545 we will open fresh short positions with a SL of 5565 and a target of 5400. We will add to these short positions only below 5360.
b) Around 5380 we will open fresh long positions with a SL of 5360 and a target of 5530. We will add to these long positions only above 5565.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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