Nifty makes a bearish evening star pattern on daily charts. Bullish only above 6320.
As discussed yesterday, Nifty was nearing the tops. The Nifty opened with a 35 point gap down at 6282 and then traded in the negative for the entire trading session. Nifty made a high of 6305 and a low of 6244 before closing at 6253 with a loss of 64 points. Now Nifty needs to give two consecutive closes above 6305 to resume its up trend.
1) The Elder Ray readings : Bull Power reduces from +142 to +96 Bear Power rises from +110 to +36 indicating that the Bulls are losing grounds, but are yet safe in their territory, while the Bears need to do much more. For today, the Bulls need to overcome the levels of 6315 to maintain their upwards momentum whereas the Bears need to breach the levels of 6215 to regain their lost grounds.
2) The stochastics are in the overbought zone and are pointing downwards.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes have remained low during the fall in the Nifty indicating that the fall may get arrested. The MACD continues to point flat while the histogram is reducing in the positive zone. The ADX is also suggesting a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 6127.
5) Considering the above, our trading plan for the day is as under.
a) Around 6295 we will open fresh short positions with a SL of 6320 and a target of 6220. We will add to these short positions only below 6185.
b) Around 6205 we will open fresh long positions with a SL of 6185 and a target of 6275. We will add to these long positions only above 6320.
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, Nifty was nearing the tops. The Nifty opened with a 35 point gap down at 6282 and then traded in the negative for the entire trading session. Nifty made a high of 6305 and a low of 6244 before closing at 6253 with a loss of 64 points. Now Nifty needs to give two consecutive closes above 6305 to resume its up trend.
1) The Elder Ray readings : Bull Power reduces from +142 to +96 Bear Power rises from +110 to +36 indicating that the Bulls are losing grounds, but are yet safe in their territory, while the Bears need to do much more. For today, the Bulls need to overcome the levels of 6315 to maintain their upwards momentum whereas the Bears need to breach the levels of 6215 to regain their lost grounds.
2) The stochastics are in the overbought zone and are pointing downwards.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes have remained low during the fall in the Nifty indicating that the fall may get arrested. The MACD continues to point flat while the histogram is reducing in the positive zone. The ADX is also suggesting a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 6127.
5) Considering the above, our trading plan for the day is as under.
a) Around 6295 we will open fresh short positions with a SL of 6320 and a target of 6220. We will add to these short positions only below 6185.
b) Around 6205 we will open fresh long positions with a SL of 6185 and a target of 6275. We will add to these long positions only above 6320.
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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