Nifty could not sustain the opening gap & drifted down. Rangebound trade expected.
As discussed yesterday, the Nifty remained volatile throughout the trade yesterday. The Nifty opened with a huge positive gap of 69 points at 5975 made a quick high of 5982 and started to drift down. One more attempt at the highs was quickly sold into by the Bears and the Nifty continued to drift down again. The late hour sell off saw the Nifty close near its day low (5913). The Nifty closed at 5928 with a gain of 22 points. We took a trade on the short side and could book a profit of 35 points on that trade.
1) The Elder Ray readings : Bull Power rises from +55 to +115 Bear Power reduces from -31 to +46 indicating that despite the close near its lows, Bears have lost their safe grounds and the Bulls have advanced. For today the Bulls need to overcome the levels of 5995 to maintain their upwards momentum whereas the Bears need to breach the levels of 5875 to regain their lost grounds.
2) The stochastics continue to remain in the neutral zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point horizontal with the histogram remaining in the negative. The ADX is showing a whipsaw like situation now favoring the Bulls. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5982.
5) Considering the above, our trading plan for the day is as under.
a) Around 5860 we will open fresh long positions with a SL of 5835 and a target of 5965. We will add to these long positions only above 6020.
b) Around 5995 we will open fresh short positions with a SL of 6020 and a target of 5895. We will add to these short positions only below 5835.
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, the Nifty remained volatile throughout the trade yesterday. The Nifty opened with a huge positive gap of 69 points at 5975 made a quick high of 5982 and started to drift down. One more attempt at the highs was quickly sold into by the Bears and the Nifty continued to drift down again. The late hour sell off saw the Nifty close near its day low (5913). The Nifty closed at 5928 with a gain of 22 points. We took a trade on the short side and could book a profit of 35 points on that trade.
1) The Elder Ray readings : Bull Power rises from +55 to +115 Bear Power reduces from -31 to +46 indicating that despite the close near its lows, Bears have lost their safe grounds and the Bulls have advanced. For today the Bulls need to overcome the levels of 5995 to maintain their upwards momentum whereas the Bears need to breach the levels of 5875 to regain their lost grounds.
2) The stochastics continue to remain in the neutral zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point horizontal with the histogram remaining in the negative. The ADX is showing a whipsaw like situation now favoring the Bulls. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5982.
5) Considering the above, our trading plan for the day is as under.
a) Around 5860 we will open fresh long positions with a SL of 5835 and a target of 5965. We will add to these long positions only above 6020.
b) Around 5995 we will open fresh short positions with a SL of 6020 and a target of 5895. We will add to these short positions only below 5835.
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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