Nearing expiry, Nifty may consolidate in a narrow range and trading maybe dull.
As discussed yesterday, we had a Bearishly volatile trading session. The Nifty opened with a negative gap down of 66 points at 5946 and its early morning attempt to revive was thwarted at 5989 and the bears pulled down the Nifty below our decisive level of 5965 in the first 30 minutes of trade. The Bears kept on their selling pressure throughout the trading session thereafter and the Nifty closed the day with a loss of 122 points at 5890 after making a low of 5871. We took one trade on the short side and booked a profit of 80 points on that trade.
1) The Elder Ray readings : Bull Power reduces from +303 to +153 Bear Power rises from +105 to +35 indicating that the Bears have fallen short of their safe zone even after their sustained selling yesterday and the Bulls are still in the driving seat. For today, the Bulls need to overcome the levels of 6010 to maintain their upwards momentum whereas the Bears need to breach the levels of 5835 to regain their lost grounds.
2) The stochastics are in the overbought zone and are pointing downwards.
3) The Nifty has closed below its 8EMA(5903) but has closed above its 13EMA and 21EMA and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD is attempting to point downwards from the positive zone, with the histogram also reducing in the positive. The ADX continues to indicate a rise in the bearish momentum and a fall in the bullish momentum. The Parabolic SAR continues with its buy signal with the SL now shifted to 5871.
5) Considering the above, our trading plan for the day is as under.
a) Above 5895 we will open fresh long positions with a SL of 5870 and a target of 5975. We will add to these long positions only above 6010.
b) Around 5985 we will open fresh short positions with a SL of 6010 and a target of 5900. We will add to these short positions only below 5870.
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 had a Bearishly volatile trading session. The Nifty opened with a negative gap down of 66 points at 5946 and its early morning attempt to revive was thwarted at 5989 and the bears pulled down the Nifty below our decisive level of 5965 in the first 30 minutes of trade. The Bears kept on their selling pressure throughout the trading session thereafter and the Nifty closed the day with a loss of 122 points at 5890 after making a low of 5871. We took one trade on the short side and booked a profit of 80 points on that trade.
1) The Elder Ray readings : Bull Power reduces from +303 to +153 Bear Power rises from +105 to +35 indicating that the Bears have fallen short of their safe zone even after their sustained selling yesterday and the Bulls are still in the driving seat. For today, the Bulls need to overcome the levels of 6010 to maintain their upwards momentum whereas the Bears need to breach the levels of 5835 to regain their lost grounds.
2) The stochastics are in the overbought zone and are pointing downwards.
3) The Nifty has closed below its 8EMA(5903) but has closed above its 13EMA and 21EMA and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD is attempting to point downwards from the positive zone, with the histogram also reducing in the positive. The ADX continues to indicate a rise in the bearish momentum and a fall in the bullish momentum. The Parabolic SAR continues with its buy signal with the SL now shifted to 5871.
5) Considering the above, our trading plan for the day is as under.
a) Above 5895 we will open fresh long positions with a SL of 5870 and a target of 5975. We will add to these long positions only above 6010.
b) Around 5985 we will open fresh short positions with a SL of 6010 and a target of 5900. We will add to these short positions only below 5870.
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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