On the eve of the RBI policy, Bears regain their footing. Nifty can plummet downwards.
As discussed yesterday, the Nifty was still in a Sell on Rise mode. The Nifty opened with a 10 point gap up at 6155 and made a quick high of 6169 within the first hour of trade. After that, the slide began and the Nifty continued to get sold off till making a low of 6094 before closing at 6101 with a loss of 44 points. We did not participate in the trade yesterday as our trading plan was hit at the fag end of the trading session.
1) The Elder Ray readings : Bull Power reduces from +74 to +68 Bear Power rises from +25 to -7 indicating that the Bears have now crawled back into the safe territory but need more work to do to retain their positional safety. For today, the Bulls need to overcome the levels of 6170 to maintain their upwards momentum whereas the Bears need to breach the levels of 6090 to maintain their downwards momentum.
2) The stochastics are now clearly out of the overbought zone and are pointing downwards.
3) The Nifty has closed below its 8EMA but has closed above its 13EMA and 21EMA and also 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 soon. The MACD has just triggered a negative indication with the histogram also turning negative. The ADX is also suggesting a favor towards the Bears. The Parabolic SAR continues with its Buy signal with the SL now at 6094 which was yesterday's low.
5) Considering the above, our trading plan for the day is as under.
a) Around 6145 we will open fresh short positions with a SL of 6170 and a target of 6065. We will add to these short positions only below 6030.
b) Around 6055 we will open fresh long positions with a SL of 6030 and a target of 6115. We will add to these long positions only above 6170.
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 was still in a Sell on Rise mode. The Nifty opened with a 10 point gap up at 6155 and made a quick high of 6169 within the first hour of trade. After that, the slide began and the Nifty continued to get sold off till making a low of 6094 before closing at 6101 with a loss of 44 points. We did not participate in the trade yesterday as our trading plan was hit at the fag end of the trading session.
1) The Elder Ray readings : Bull Power reduces from +74 to +68 Bear Power rises from +25 to -7 indicating that the Bears have now crawled back into the safe territory but need more work to do to retain their positional safety. For today, the Bulls need to overcome the levels of 6170 to maintain their upwards momentum whereas the Bears need to breach the levels of 6090 to maintain their downwards momentum.
2) The stochastics are now clearly out of the overbought zone and are pointing downwards.
3) The Nifty has closed below its 8EMA but has closed above its 13EMA and 21EMA and also 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 soon. The MACD has just triggered a negative indication with the histogram also turning negative. The ADX is also suggesting a favor towards the Bears. The Parabolic SAR continues with its Buy signal with the SL now at 6094 which was yesterday's low.
5) Considering the above, our trading plan for the day is as under.
a) Around 6145 we will open fresh short positions with a SL of 6170 and a target of 6065. We will add to these short positions only below 6030.
b) Around 6055 we will open fresh long positions with a SL of 6030 and a target of 6115. We will add to these long positions only above 6170.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan a) has triggered and have opened fresh short positions at 6145 with a SL of 6170
ReplyDeleteBooked out with a loss of 25 points as SL triggered at 6170
ReplyDelete