Nifty sells off post two big events, indicating end of rally and a reversal on cards.
We have been on a trading holiday (vacation) owing to Ganapati festivals and are happy to be back with the Nifty having sort of cleared the confusion that existed prior to two big events. The Nifty seems to be poised for a plunge, however, the expiry week may induce some volatility in the trading.
1) The Elder Ray readings : Bull Power reduces from +347 to +304 Bear Power rises from +244 to +106 indicating that the Bears are away from their safety zone and are gaining grounds. The Bulls seem to be complacent. For today, the Bulls need to overcome the levels of 6165 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5855 to regain their lost grounds.
2) The stochastics are in the overbought zone and are attempting to point downwards.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have risen with the fall in the Nifty indicating that the fall may continue. The MACD is showing signs of topping out, with the histogram reducing from the positive zone. The ADX is indicating a rise in the Bearish momentum and a fall in the Bullish momentum. The Parabolic SAR continues with its Buy signal with a SL now shifted up to 5811.
5) Considering the above, our trading plan for the day is as under.
a) Around 5990 we will open fresh long positions with a SL of 5965 and a target of 6060. We will add to these long positions only above 6110.
b) Around 6085 we will open fresh short positions with a SL of 6110 and a target of 5980. We will add to these short positions only below 5965.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
We have been on a trading holiday (vacation) owing to Ganapati festivals and are happy to be back with the Nifty having sort of cleared the confusion that existed prior to two big events. The Nifty seems to be poised for a plunge, however, the expiry week may induce some volatility in the trading.
1) The Elder Ray readings : Bull Power reduces from +347 to +304 Bear Power rises from +244 to +106 indicating that the Bears are away from their safety zone and are gaining grounds. The Bulls seem to be complacent. For today, the Bulls need to overcome the levels of 6165 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5855 to regain their lost grounds.
2) The stochastics are in the overbought zone and are attempting to point downwards.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have risen with the fall in the Nifty indicating that the fall may continue. The MACD is showing signs of topping out, with the histogram reducing from the positive zone. The ADX is indicating a rise in the Bearish momentum and a fall in the Bullish momentum. The Parabolic SAR continues with its Buy signal with a SL now shifted up to 5811.
5) Considering the above, our trading plan for the day is as under.
a) Around 5990 we will open fresh long positions with a SL of 5965 and a target of 6060. We will add to these long positions only above 6110.
b) Around 6085 we will open fresh short positions with a SL of 6110 and a target of 5980. We will add to these short positions only below 5965.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Part b of trading plan(b) has triggered and have opened fresh short position at 5965 with a SL of 5995
ReplyDeleteBooked out with a profit of 80 points at 5885.
ReplyDelete