Nifty makes a NR7 on the eve of expiry. Expect a huge move amidst weak technicals.
As discussed yesterday, the Nifty showed "Neutral Bearishness" in trade throughout the day. The Nifty opened with a 4 point gap up at 6063 and traded with low volumes in a narrow range between the high of 6074 and a low of 6030 before closing at 6057 with a loss of 2 points. And today being the day of series expiry, a huge bout of volatility could be expected. We did not take any trade yesterday as none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from+16 to -17 Bear Power rises from -49 to -61 indicating that the Bears are gaining ground slowly but surely. For today, the Bulls need to overcome the levels of 6085 to regain their lost grounds whereas the Bears need to breach the levels of 6025 to maintain their downwards momentum.
2) The stochastics are hovering just above the oversold zone and are pointing horizontal.
3) The Nifty has closed below all its key EMAs and also just below its 50DMA. However, it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have kept low with the Nifty closing flat indicating the indecision amongst the traders. The MACD continues to point downwards with the histogram remaining in the negative. The ADX is now suggesting a rise in the Bearish momentum and a fall in the Bullish momentum. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6139.
5) Considering the above, our trading plan for the day is as under.
a) Below 6085 we will open fresh short positions with a SL of 6105 and a target of 6000. We will add to these short positions only below 5970.
b) Around 5990 we will open fresh long positions with a SL of 5970 and a target of 6065. We will add to these long positions only above 6105.
Happy Trading !!!
Buy call on SHAKTIPUMP hit its target on 27 Nov 2013
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 showed "Neutral Bearishness" in trade throughout the day. The Nifty opened with a 4 point gap up at 6063 and traded with low volumes in a narrow range between the high of 6074 and a low of 6030 before closing at 6057 with a loss of 2 points. And today being the day of series expiry, a huge bout of volatility could be expected. We did not take any trade yesterday as none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from
2) The stochastics are hovering just above the oversold zone and are pointing horizontal.
3) The Nifty has closed below all its key EMAs and also just below its 50DMA. However, it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have kept low with the Nifty closing flat indicating the indecision amongst the traders. The MACD continues to point downwards with the histogram remaining in the negative. The ADX is now suggesting a rise in the Bearish momentum and a fall in the Bullish momentum. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6139.
5) Considering the above, our trading plan for the day is as under.
a) Below 6085 we will open fresh short positions with a SL of 6105 and a target of 6000. We will add to these short positions only below 5970.
b) Around 5990 we will open fresh long positions with a SL of 5970 and a target of 6065. We will add to these long positions only above 6105.
Happy Trading !!!
Buy call on SHAKTIPUMP hit its target on 27 Nov 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Part (b) of trading plan (b) triggered. Opened fresh long position at 6107 with a SL of 6085
ReplyDeleteExited long position at 6099 booking a minor loss of 8 points as Nifty not responding as per expectations.
ReplyDeleteNow waiting for 6085 to be breached.
Opened short position for intraday at 6085 with SL of 6105
ReplyDeleteBooked out at 10 points profit at 6075
ReplyDelete