Nifty breaches critical support levels. Uphill task for the Bulls now onwards.
As discussed on Friday, the Nifty was in no man's land, at the opening. However, the Nifty after opening gap down for the 4th successive trading session, kept on drifting down by the hour and never really looked like gaining any strength. Thus, the Bearish undertones got confirmed and now the Bulls have lost their footing and face a uphill task of recovery. We took a trade on the long side and lost 20 points on that trade as our SL got hit yet again.
1) The Elder Ray readings : Bull Power reduces from +58 to -12 Bear Power rises from +1 to -59 indicating that the Bears not only have regained their footing, they have also dislodged the Bulls. For today, the Bulls need to overcome the levels of 6210 to regain their lost grounds whereas the Bears need to breach the levels of 6145 to maintain their downwards momentum.
2) The stochastics are right in the center of the neutral zone and are pointing downwards.
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 for now. The MACD is about to trigger a sell with the histogram remaining in the positive but falling. The ADX is showing a growing bearish momentum and a falling bullish momentum. The Parabolic SAR continues with its Buy call with the SL now brought up to 6105.
5) Considering the above, our trading plan for the day is as under.
a) Around 6210 we will open fresh short positions with a SL of 6235 and a target of 6140. We will add to these short positions only below 6110.
b) Around 6130 we will open fresh long positions with a SL of 6110 and a target of 6195. We will add to these long positions only above 6235.
Happy Trading !!!
Sell call on TATACOFFEE hit its target on 13 Dec 2013
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, the Nifty was in no man's land, at the opening. However, the Nifty after opening gap down for the 4th successive trading session, kept on drifting down by the hour and never really looked like gaining any strength. Thus, the Bearish undertones got confirmed and now the Bulls have lost their footing and face a uphill task of recovery. We took a trade on the long side and lost 20 points on that trade as our SL got hit yet again.
1) The Elder Ray readings : Bull Power reduces from +58 to -12 Bear Power rises from +1 to -59 indicating that the Bears not only have regained their footing, they have also dislodged the Bulls. For today, the Bulls need to overcome the levels of 6210 to regain their lost grounds whereas the Bears need to breach the levels of 6145 to maintain their downwards momentum.
2) The stochastics are right in the center of the neutral zone and are pointing downwards.
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 for now. The MACD is about to trigger a sell with the histogram remaining in the positive but falling. The ADX is showing a growing bearish momentum and a falling bullish momentum. The Parabolic SAR continues with its Buy call with the SL now brought up to 6105.
5) Considering the above, our trading plan for the day is as under.
a) Around 6210 we will open fresh short positions with a SL of 6235 and a target of 6140. We will add to these short positions only below 6110.
b) Around 6130 we will open fresh long positions with a SL of 6110 and a target of 6195. We will add to these long positions only above 6235.
Happy Trading !!!
Sell call on TATACOFFEE hit its target on 13 Dec 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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