Nifty does a "Inside Across" candle. Stays neutral but bearish. Sell on rise continues.
We observed a trading holiday yesterday. The Nifty exhibited a "Inside Across" candle on the daily charts, meaning that the Nifty stayed within the trading range of the previous day, but as against closing near the highs on the previous day, the Nifty closed near the lows yesterday. The overall technicals stay neutral as of now, however, the orientation has turned slightly bearish and it is still anybody's game on the Nifty.
1) The Elder Ray readings : Bull Power reduces from +19 to +16 Bear Power also reduces from -67 to -49 indicative of the typical inside day and also the neutrality of Bull Bear positioning on the Nifty. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach the levels of 6040 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and are pointing across.
3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point downwards with the histogram remaining in the negative. The ADX is suggesting a fall in momentum for both the Bulls and the Bears. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6153.
5) Considering the above, our trading plan for the day is as under.
a) Around 6000 we will open fresh long positions with a SL of 5980 and a target of 6100. We will add to these long positions only above 6135.
b) Around 6115 we will open fresh short positions with a SL of 6135 and a target of 6015. We will add to these short positions only below 5980.
Happy Trading !!!
Buy call on TORNTPOWER hit its target of 26 Nov 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
We observed a trading holiday yesterday. The Nifty exhibited a "Inside Across" candle on the daily charts, meaning that the Nifty stayed within the trading range of the previous day, but as against closing near the highs on the previous day, the Nifty closed near the lows yesterday. The overall technicals stay neutral as of now, however, the orientation has turned slightly bearish and it is still anybody's game on the Nifty.
1) The Elder Ray readings : Bull Power reduces from +19 to +16 Bear Power also reduces from -67 to -49 indicative of the typical inside day and also the neutrality of Bull Bear positioning on the Nifty. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach the levels of 6040 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and are pointing across.
3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point downwards with the histogram remaining in the negative. The ADX is suggesting a fall in momentum for both the Bulls and the Bears. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6153.
5) Considering the above, our trading plan for the day is as under.
a) Around 6000 we will open fresh long positions with a SL of 5980 and a target of 6100. We will add to these long positions only above 6135.
b) Around 6115 we will open fresh short positions with a SL of 6135 and a target of 6015. We will add to these short positions only below 5980.
Happy Trading !!!
Buy call on TORNTPOWER hit its target of 26 Nov 2013
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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