With expiry just 4 days away, the Nifty remains a sell on rises. Volatility may rise.
As discussed on Friday, we had expected a "Red weekend on the cards". The Nifty closed flat but the weekly bar was a red bar plummeting downwards. The Nifty opened at 6028 with a positive gap up of 28 points, and then made its way up to 6041 and slid back to 6004. It clawed its way back to 6050 which was to be its intraday high, and then again the Nifty slid back downwards, this time breaching the intraday lows. The Nifty made a low 5973 before closing at 5995 with a loss of 4 points. We took a short trade at 6038 and squared off at 5978 booking a profit of 60 points.
1) The Elder Ray readings : Bull Power reduces from -22 to -52 Bear Power also mildly reduces from -134 to -129 indicating that the Bears are still holding the sway on the Nifty. For today, the Bulls need to overcome the levels of 6080 to regain their lost grounds whereas the Bears need to breach the levels of 5950 to maintain their downwards momentum.
2) The stochastics are just about touching the oversold zone and are pointing downwards.
3) The Nifty has closed below all its key EMAs and also its 50DMA. The Nifty however, has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the Nifty may find supports nearby. The MACD continues to move downwards with the histogram also now growing in the negative. The ADX is suggesting a fall in the bearish momentum, but is still favoring the bears. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6186.
5) Considering the above, our trading plan for the day is as under.
a) Around 6045 we will open fresh short positions with a SL of 6075 and a target of 5955. We will add to these short positions only below 5925.
b) Around 5945 we will open fresh long positions with a SL of 5925 and a target of 6015. We will add to these long positions only above 6075.
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 on Friday, we had expected a "Red weekend on the cards". The Nifty closed flat but the weekly bar was a red bar plummeting downwards. The Nifty opened at 6028 with a positive gap up of 28 points, and then made its way up to 6041 and slid back to 6004. It clawed its way back to 6050 which was to be its intraday high, and then again the Nifty slid back downwards, this time breaching the intraday lows. The Nifty made a low 5973 before closing at 5995 with a loss of 4 points. We took a short trade at 6038 and squared off at 5978 booking a profit of 60 points.
1) The Elder Ray readings : Bull Power reduces from -22 to -52 Bear Power also mildly reduces from -134 to -129 indicating that the Bears are still holding the sway on the Nifty. For today, the Bulls need to overcome the levels of 6080 to regain their lost grounds whereas the Bears need to breach the levels of 5950 to maintain their downwards momentum.
2) The stochastics are just about touching the oversold zone and are pointing downwards.
3) The Nifty has closed below all its key EMAs and also its 50DMA. The Nifty however, has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the Nifty may find supports nearby. The MACD continues to move downwards with the histogram also now growing in the negative. The ADX is suggesting a fall in the bearish momentum, but is still favoring the bears. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6186.
5) Considering the above, our trading plan for the day is as under.
a) Around 6045 we will open fresh short positions with a SL of 6075 and a target of 5955. We will add to these short positions only below 5925.
b) Around 5945 we will open fresh long positions with a SL of 5925 and a target of 6015. We will add to these long positions only above 6075.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh short position at 6070 with a SL of 6090
ReplyDeleteSorry....opened fresh short position at 6065 with a SL of 6085
ReplyDeleteBooked loss of 20 points as SL hit at 6085.
ReplyDelete