Nifty exhibits distributive patterns and looks getting ready for a downfall.
As discussed yesterday, the Nifty remained range bound for the entire trading session. The Nifty opened on a positive note with a gap up of 9 points and traded within a range but bearishly. The Nifty made a high of 6111 and a low of 6033 before closing at 6046 with a loss of 43 points. None of our trading plans was triggered and we did not enter the trading arena yesterday.
1) The Elder Ray readings : Bull Power reduces from +179 to +124 Bear Power rises from +79 to +45 indicating that the Bears are slowly recovering although the control still lies with the Bulls. For today, the Bulls need to overcome the levels of 6125 to maintain their upwards momentum whereas the Bears need to breach the levels of 5995 to regain their lost grounds.
2) The stochastics are in the overbought zone and are now pointing downwards.
3) The Nifty took support at its 8EMA(6027) and closed above all its key EMAs as well as above all its key DMAs too.
4) In the above chart the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to point horizontal with the histogram remaining positive but reducing. The ADX is suggesting a loss of momentum for the Bulls and gain of Bearish momentum. The Parabolic SAR continues with is buy signal with the SL now raised to 5818.
5) Considering the above, our trading plan for the day is as under.
a) Around 6090 we will open fresh short positions with a SL of 6115 and a target of 5990. We will add to these short positions only below 5975.
b) Around 5990 we will open fresh long positions with a SL of 5975 and a target of 6070. We will add to these long positions only above 6115.
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 range bound for the entire trading session. The Nifty opened on a positive note with a gap up of 9 points and traded within a range but bearishly. The Nifty made a high of 6111 and a low of 6033 before closing at 6046 with a loss of 43 points. None of our trading plans was triggered and we did not enter the trading arena yesterday.
1) The Elder Ray readings : Bull Power reduces from +179 to +124 Bear Power rises from +79 to +45 indicating that the Bears are slowly recovering although the control still lies with the Bulls. For today, the Bulls need to overcome the levels of 6125 to maintain their upwards momentum whereas the Bears need to breach the levels of 5995 to regain their lost grounds.
2) The stochastics are in the overbought zone and are now pointing downwards.
3) The Nifty took support at its 8EMA(6027) and closed above all its key EMAs as well as above all its key DMAs too.
4) In the above chart the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to point horizontal with the histogram remaining positive but reducing. The ADX is suggesting a loss of momentum for the Bulls and gain of Bearish momentum. The Parabolic SAR continues with is buy signal with the SL now raised to 5818.
5) Considering the above, our trading plan for the day is as under.
a) Around 6090 we will open fresh short positions with a SL of 6115 and a target of 5990. We will add to these short positions only below 5975.
b) Around 5990 we will open fresh long positions with a SL of 5975 and a target of 6070. We will add to these long positions only above 6115.
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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