Opening rally fizzles out & Nifty closes 85 points below its highs. Not bearish yet.
As discussed yesterday, Bulls were missing their final thrust. There came the semblance of this thrust when the Nifty after opening subdued with a 16 point gap down at 6163 raced to above 6235 within the first 30 minutes of trade and climbed to make a high of 6252. However, this level could not be sustained and the Nifty started its slide down and some consistent selling saw the Nifty not only breach its opening lows but also close near the opening mark after making a intraday low of 6143. We took two lots of short positions as per our trading plan and garnered a profit of 100 points by EOD.
1) The Elder Ray readings : Bull Power rises from +136 to +159 Bear Power reduces from +35 to +49 indicating that though the Nifty closed with some losses, the Bulls have actually gained some power and the Bears have lost further grounds. For today, the Bulls need to overcome the levels of 6265 to maintain their upwards momentum whereas the Bears need to breach the levels of 6105 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone and are now looking to come down.
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 remained high with the fall in the Nifty indicating that the fall may continue. The MACD is showing initial signs of dipping down with the histogram remaining positive but reducing. The ADX is suggesting a rise in Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 6031.
5) Considering the above, our trading plan for the day is as under.
a) Around 6215 we will open fresh short positions with a SL of 6235 and a target of 6135. We will add to these short positions only below 6095.
b) Around 6120 we will open fresh long positions with a SL of 6095 and a target of 6205. We will add to these long positions only above 6235.
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, Bulls were missing their final thrust. There came the semblance of this thrust when the Nifty after opening subdued with a 16 point gap down at 6163 raced to above 6235 within the first 30 minutes of trade and climbed to make a high of 6252. However, this level could not be sustained and the Nifty started its slide down and some consistent selling saw the Nifty not only breach its opening lows but also close near the opening mark after making a intraday low of 6143. We took two lots of short positions as per our trading plan and garnered a profit of 100 points by EOD.
1) The Elder Ray readings : Bull Power rises from +136 to +159 Bear Power reduces from +35 to +49 indicating that though the Nifty closed with some losses, the Bulls have actually gained some power and the Bears have lost further grounds. For today, the Bulls need to overcome the levels of 6265 to maintain their upwards momentum whereas the Bears need to breach the levels of 6105 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone and are now looking to come down.
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 remained high with the fall in the Nifty indicating that the fall may continue. The MACD is showing initial signs of dipping down with the histogram remaining positive but reducing. The ADX is suggesting a rise in Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 6031.
5) Considering the above, our trading plan for the day is as under.
a) Around 6215 we will open fresh short positions with a SL of 6235 and a target of 6135. We will add to these short positions only below 6095.
b) Around 6120 we will open fresh long positions with a SL of 6095 and a target of 6205. We will add to these long positions only above 6235.
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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