Seven consecutive days fall post registering a highest high, Nifty at critical supports.
As discussed yesterday, we were expecting "A relief rally may unfold" on the Nifty. Positive global cues and a 24 point gap up opening on the Nifty at 6178 initially supported our view. However, the Bulls could not sustain the Nifty at higher levels, and after making a higher high than previous day at 6191, the Nifty made a lower low than previous day at 6133, before closing at 6139 with a loss of 16 points. We took a trade on the long side and booked out at EOD with a small loss of 8 points.
1) The Elder Ray readings : Bull Power rises from -28 to -10 Bear Power also rises from -65 to -68 indicating that the Bears are still in control of the Nifty. For today, the Bulls need to overcome the levels of 6195 to regain their lost grounds whereas the Bears need to breach the levels of 6120 to maintain their downwards momentum.
2) The stochastics are now approaching the oversold zone.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues with its negative signal with the histogram growing in the negative. The ADX continues to favor the Bears however, suggesting a fall in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now moved up to 6133.
5) Considering the above, our trading plan for the day is as under.
a) Around 6185 we will open fresh short positions with a SL of 6200 and a target of 6110. We will add to these short positions only below 6085.
b) Around 6100 we will open fresh long positions with a SL of 6085 and a target of 6170. We will add to these long positions only above 6200.
Happy Trading !!!
Buy calls on WHIRLPOOL & INDOCO hit their targets on 17 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 were expecting "A relief rally may unfold" on the Nifty. Positive global cues and a 24 point gap up opening on the Nifty at 6178 initially supported our view. However, the Bulls could not sustain the Nifty at higher levels, and after making a higher high than previous day at 6191, the Nifty made a lower low than previous day at 6133, before closing at 6139 with a loss of 16 points. We took a trade on the long side and booked out at EOD with a small loss of 8 points.
1) The Elder Ray readings : Bull Power rises from -28 to -10 Bear Power also rises from -65 to -68 indicating that the Bears are still in control of the Nifty. For today, the Bulls need to overcome the levels of 6195 to regain their lost grounds whereas the Bears need to breach the levels of 6120 to maintain their downwards momentum.
2) The stochastics are now approaching the oversold zone.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues with its negative signal with the histogram growing in the negative. The ADX continues to favor the Bears however, suggesting a fall in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now moved up to 6133.
5) Considering the above, our trading plan for the day is as under.
a) Around 6185 we will open fresh short positions with a SL of 6200 and a target of 6110. We will add to these short positions only below 6085.
b) Around 6100 we will open fresh long positions with a SL of 6085 and a target of 6170. We will add to these long positions only above 6200.
Happy Trading !!!
Buy calls on WHIRLPOOL & INDOCO hit their targets on 17 Dec 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty has swept past our identified resistance zone of 6185 6200.
ReplyDeleteWaiting for opening long positions near 6205 now, with SL of 6180
Now opened fresh intraday long position at 6205 with SL of 6180
ReplyDeleteSquared off at EOD at 6230 with a profit of 25 points intraday.
ReplyDelete