Nifty forms a NR7 day. Aided with positive global cues a relief rally may unfold.
As discussed yesterday, we saw "Bears winning the battle" on the bourses. The Nifty after a flat opening, traded within a small range of 37 points during the entire trading session. However, the Nifty continued to make a lower high at 6183 and a lower low at 6146 before closing at 6155 with a loss of 14 points. This lower high and lower low continues to keep the Bears in the reckoning.
1) The Elder Ray readings : Bull Power reduces from -12 to -28 Bear Power rises from -59 to -65 indicating that the Bears are in control of the Nifty as of now. For today, the Bulls need to overcome the levels of 6205 to regain their lost grounds whereas the Bears need to breach the levels of 6140 to maintain their downwards momentum.
2) The stochastics are in 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 decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD has triggered a sell with the histogram also moving below the zero line. The ADX is suggesting a pause in the Bearish momentum, but the Bullish momentum is falling. The Parabolic SAR continues to give out its Buy signal with the SL now moved up to 6124.
5) Considering the above, our trading plan for the day is as under.
a) Around 6240 we will open fresh short positions with a SL of 6265 and a target of 6150. We will add to these short positions only below 6120.
b) Around 6145 we will open fresh long positions with a SL of 6120 and a target of 6225. We will add to these long positions only above 6265.
Happy Trading !!!
Buy call on PRICOL and Sell call on MCX hit their targets on 16 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 yesterday, we saw "Bears winning the battle" on the bourses. The Nifty after a flat opening, traded within a small range of 37 points during the entire trading session. However, the Nifty continued to make a lower high at 6183 and a lower low at 6146 before closing at 6155 with a loss of 14 points. This lower high and lower low continues to keep the Bears in the reckoning.
1) The Elder Ray readings : Bull Power reduces from -12 to -28 Bear Power rises from -59 to -65 indicating that the Bears are in control of the Nifty as of now. For today, the Bulls need to overcome the levels of 6205 to regain their lost grounds whereas the Bears need to breach the levels of 6140 to maintain their downwards momentum.
2) The stochastics are in 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 decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD has triggered a sell with the histogram also moving below the zero line. The ADX is suggesting a pause in the Bearish momentum, but the Bullish momentum is falling. The Parabolic SAR continues to give out its Buy signal with the SL now moved up to 6124.
5) Considering the above, our trading plan for the day is as under.
a) Around 6240 we will open fresh short positions with a SL of 6265 and a target of 6150. We will add to these short positions only below 6120.
b) Around 6145 we will open fresh long positions with a SL of 6120 and a target of 6225. We will add to these long positions only above 6265.
Happy Trading !!!
Buy call on PRICOL and Sell call on MCX hit their targets on 16 Dec 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh intraday long position at 6147 with SL of 6122
ReplyDeleteBooked out at EOD with a small loss of 8 points
ReplyDelete