Nifty - 22 Feb 2013 - Bears reclaim their loss

As Bulls falter, Bears, aided by global cues, reclaim their position. Downtrend stays. 

As discussed yesterday, Bulls had faltered at resistances. The Nifty, taking global cues, opened with a 42 point gap down. Then got sold off heavily, breaching 5900 levels and going down as far as 5845 before closing at 5852 with a heavy loss of 90 points. In our yesterday's post, despite the Nifty closing on a positive note, we had suggested that the negative outlook had returned. Part b of our trading plan(b) triggered and we could make 110 points profit in the 3 trades that were taken yesterday.

1) The Elder Ray readings : Bull Power reduces from +33 to -4 Bear Power rises from 0 to -81 indicating that not only the Bears have regained their lost grounds, they have now also dragged the Bulls out of their safe zone. For today, the Bulls need to overcome the levels of 5920 to regain their lost grounds, whereas the Bears need to breach the levels of 5840 to maintain their downwards momentum.

2) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.

3) The fast stochastics are deep into the oversold zone, while the slow counterpart is still in the neutral zone and is pointing downwards.

 

4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD has resumed its downward journey. The ADX is now showing favor to the Bears. The Parabolic SAR also has returned to giving out a sell signal with a SL of 5971.

5) Considering the above, our trading plan for the day is as under.

a) Around 5875, we will open fresh short positions with a SL of 5895 and a target of 5830. We will add to these short positions only below 5805.

b) Around 5820, we will open fresh long positions with a SL of 5805 and a target of 5855. We will add to these long positions only above 5895.

Happy Trading !!!

    

Also visit Just Nifty and the Nifty Range blogs.


For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 22 Feb 2013 - Bears reclaim their loss

As Bulls falter, Bears, aided by global cues, reclaim their position. Downtrend stays. 

As discussed yesterday, Bulls had faltered at resistances. The Nifty, taking global cues, opened with a 42 point gap down. Then got sold off heavily, breaching 5900 levels and going down as far as 5845 before closing at 5852 with a heavy loss of 90 points. In our yesterday's post, despite the Nifty closing on a positive note, we had suggested that the negative outlook had returned. Part b of our trading plan(b) triggered and we could make 110 points profit in the 3 trades that were taken yesterday.

1) The Elder Ray readings : Bull Power reduces from +33 to -4 Bear Power rises from 0 to -81 indicating that not only the Bears have regained their lost grounds, they have now also dragged the Bulls out of their safe zone. For today, the Bulls need to overcome the levels of 5920 to regain their lost grounds, whereas the Bears need to breach the levels of 5840 to maintain their downwards momentum.

2) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.

3) The fast stochastics are deep into the oversold zone, while the slow counterpart is still in the neutral zone and is pointing downwards.

Nifty - 21 Feb 2013 - Bulls falter again

Post a smart comeback, Bulls falter at first resistance. Negative outlook returns.

As discussed yesterday, Bulls staged a smart comeback, by opening the Nifty with a positive gap of 26 points, and then swiftly getting it above 5970. However, the first resistance level of 5970 proved too much for the Bulls and the Nifty got sold off to hit a low of 5938 before closing at 5943 with a gain of just 3 points. Our trading plan (a) got triggered right away and we could book a profit of 50 points on two lots traded. Nifty has got resisted now below the rising trend line joining the lows of June July September and November 2012, and has traded below that line 5 trading sessions now. Bulls need to capture the levels of 5980 to negate the Bears.

1) The Elder Ray readings : Bull Power rises from +11 to +33 Bear Power reduces from -54 to 0 indicating that the Bears having lost momentum, are not yet out of their territory and can stage a comeback. For today, the Bulls need to overcome the levels of 5975 to maintain their upwards momentum, whereas the Bears have to breach the levels of 5930 to regain their lost grounds.

2) The Nifty has managed to close above it 8EMA(5927) and 13EMA(5938). However it has closed below its 21EMA(5951). It has also closed below its 50DMA but is above its 100DMA and 200DMA.

3) The stochastics are in the neutral zone and are pointing flat.

 

4) In the above chart, the volumes have increased with the Nifty forming a red candle, indicating that there is stiff resistance at higher levels. The MACD continues in the negative, although it is flattening out. The ADX is favoring the Bulls as of now, but indicating overall loss of momentum for the Nifty. The Parabolic SAR has now started a fresh Buy signal with the SL at 5854, which is the current swing low.

5) Considering the above, our trading plan for the day is as under.

a) Around 5915 we will open fresh long positions with a SL of 5900 and a target of 5960. We will add to these long positions only above 5985.

b) Around 5965 we will open fresh short positions with a SL of 5985 and a target of 5920. We will add to these short positions only below 5900.

Happy Trading !!!    

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 21 Feb 2013 - Bulls falter again

Post a smart comeback, Bulls falter at first resistance. Negative outlook returns.

As discussed yesterday, Bulls staged a smart comeback, by opening the Nifty with a positive gap of 26 points, and then swiftly getting it above 5970. However, the first resistance level of 5970 proved too much for the Bulls and the Nifty got sold off to hit a low of 5938 before closing at 5943 with a gain of just 3 points. Our trading plan (a) got triggered right away and we could book a profit of 50 points on two lots traded. Nifty has got resisted now below the rising trend line joining the lows of June July September and November 2012, and has traded below that line 5 trading sessions now. Bulls need to capture the levels of 5980 to negate the Bears.

1) The Elder Ray readings : Bull Power rises from +11 to +33 Bear Power reduces from -54 to 0 indicating that the Bears having lost momentum, are not yet out of their territory and can stage a comeback. For today, the Bulls need to overcome the levels of 5975 to maintain their upwards momentum, whereas the Bears have to breach the levels of 5930 to regain their lost grounds.

2) The Nifty has managed to close above it 8EMA(5927) and 13EMA(5938). However it has closed below its 21EMA(5951). It has also closed below its 50DMA but is above its 100DMA and 200DMA.

3) The stochastics are in the neutral zone and are pointing flat.

Nifty - 20 Feb 2013 - Bulls stage a comeback

On a low volume day, Bulls stage a smart comeback. But need to do more now.

As discussed yesterday, Bearish outlook remained on the Nifty for most of the trading session. The Nifty opened flat and traded within a confined range of 20 points for most part of the trading session with a negative bias. However, in the last hour of trade, the Bulls staged a smart rally and took the Nifty swiftly past its resistance levels, to make a high of 5948 before closing at 5940 with a whopping gain of 42 points. Our trading plan (a) triggered. However, we jumped the gun too soon, and booked a loss of 48 points.

1) The Elder Ray readings : Bull Power rises from -25 to +11 Bear Power reduces from -58 to -54 indicating that though the Bulls have recovered a lot, they still need to do more today. For today, the Bulls need to overcome the levels of 5955 to retain their upwards momentum whereas the Bears need to breach the Nifty below 5875 to maintain their downwards momentum.

2) The Nifty has closed above its 8EMA and 13EMA. However, it has closed below its 21EMA(5952) and 200DMA(5961) which could be near term resistance.

3) The stochastics are just out of the oversold zone and are now pointing upwards.

 

4) In the above chart, the volumes have remained low with the rise in the Nifty indicating that the rise needs to be confirmed yet. The MACD is in the negative, but is seen rising, though it has not triggered a reversal yet. The ADX is suggesting equilibrium between the Bulls and the Bears. The Parabolic SAR continues with its sell signal with a SL of 5948.

5) Considering the above, our trading plan for the day is as under.

a) Around 5920 we will open fresh long positions with a SL of 5900 and a target of 5965. We will add to these long positions only above 5980.

b) Around 5970 we will open fresh short positions with a SL of 5980 and a target of 5925. We will add to these short positions only below 5900.

Happy Trading !!!   

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 20 Feb 2013 - Bulls stage a comeback

On a low volume day, Bulls stage a smart comeback. But need to do more now.

As discussed yesterday, Bearish outlook remained on the Nifty for most of the trading session. The Nifty opened flat and traded within a confined range of 20 points for most part of the trading session with a negative bias. However, in the last hour of trade, the Bulls staged a smart rally and took the Nifty swiftly past its resistance levels, to make a high of 5948 before closing at 5940 with a whopping gain of 42 points. Our trading plan (a) triggered. However, we jumped the gun too soon, and booked a loss of 48 points.

1) The Elder Ray readings : Bull Power rises from -25 to +11 Bear Power reduces from -58 to -54 indicating that though the Bulls have recovered a lot, they still need to do more today. For today, the Bulls need to overcome the levels of 5955 to retain their upwards momentum whereas the Bears need to breach the Nifty below 5875 to maintain their downwards momentum.

2) The Nifty has closed above its 8EMA and 13EMA. However, it has closed below its 21EMA(5952) and 200DMA(5961) which could be near term resistance.

3) The stochastics are just out of the oversold zone and are now pointing upwards.

Nifty - 19 Feb 2013 - Bearish outlook remains

Bulls try hard, but fail to conquer resistances, as the Bearish outlook persists.

As discussed yesterday, we expected the down move to continue. However, the Nifty after opening flat, made a low of 5878 and then consolidated in a narrow band of 25 points, making a high of 5911 before closing at 5989, with a net gain of 10 points. Our trading plan (a) got triggered and we were able to book 25 points profit on two lots traded.

1) The Elder Ray readings : Bull Power rises from -43 to -25 Bear Power reduces from -89 to -58 indicating that the Bulls have tried hard but have failed to garner enough momentum. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.

2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However it is above its 100DMA and 200DMA.

3) The stochastics continue to remain in the oversold zone.

 

4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may not be a prolonged one. The MACD continues to remain in the negative and does not reflect the rise in the Nifty. The ADX is still favoring the down move. The Parabolic SAR continues with its sell signal with a SL now at 5960.

5) Considering the above, our trading plan for the day is as under.

a) Around 5920 we will open fresh short positions with a SL of 5940 and a target of 5880. We will add to these short positions only below 5860.

b) Around 5870 we will open fresh long positions with a SL of 5860 and a target of 5900. We will add to these long positions only above 5940.

Happy Trading !!!   

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 19 Feb 2013 - Bearish outlook remains

Bulls try hard, but fail to conquer resistances, as the Bearish outlook persists.

As discussed yesterday, we expected the down move to continue. However, the Nifty after opening flat, made a low of 5878 and then consolidated in a narrow band of 25 points, making a high of 5911 before closing at 5989, with a net gain of 10 points. Our trading plan (a) got triggered and we were able to book 25 points profit on two lots traded.

1) The Elder Ray readings : Bull Power rises from -43 to -25 Bear Power reduces from -89 to -58 indicating that the Bulls have tried hard but have failed to garner enough momentum. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.

2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However it is above its 100DMA and 200DMA.

3) The stochastics continue to remain in the oversold zone.

Nifty - 18 Feb 2013 - Downtrend continues

Nifty continues to move down, even as Bulls fail in late attempt to recovery.

As discussed on Friday, the Bears continued to tighten the noose on the Nifty, and opened it with a down gap of 27 points and made a lower low at 5854. The Bulls attempt at a late hour recovery on the Nifty, fizzled out at 5900 and the Nifty closed at 5887 with a loss of 10 points. Our trading plan (b) which was aimed at this attempt to recovery, got triggered and hit its stop loss before the rise came in. We had to book a loss of 15 points.

1) The Elder Ray readings : Bull Power reduces from -12 to -43 Bear Power rises from -67 to -89 indicating that the Bears are now firmly in the driver's seat as the Nifty seems to be headed downwards. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds whereas the Bears need to breach the levels of 5840 on the Nifty to maintain their downwards momentum.

2) The Nifty continues to close below all its key EMAs and also below its 50DMA(5961). However it has closed above its 100DMA(5830) and also its 200DMA.

3) The stochastics continue to remain in the oversold zone.

 

4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the fall may get arrested soon. The MACD is again growing on the negative side. The ADX is suggesting a gain of momentum for the down move. The Parabolic SAR continues with its sell signal with a SL of 5978.

5) Considering the above, our trading plan for the day is as under.

a) Around 5915 we will open fresh short positions with a SL of 5930 and a target of 5870. We will add to these short positions only below 5845.

b) Around 5860 we will open fresh long positions with a SL of 5845 and a target of 5905. We will add to these long positions only above 5930.  

Happy Trading !!! 

Also visit Just Nifty and the Nifty Range blogs.


For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 18 Feb 2013 - Downtrend continues

Nifty continues to move down, even as Bulls fail in late attempt to recovery.

As discussed on Friday, the Bears continued to tighten the noose on the Nifty, and opened it with a down gap of 27 points and made a lower low at 5854. The Bulls attempt at a late hour recovery on the Nifty, fizzled out at 5900 and the Nifty closed at 5887 with a loss of 10 points. Our trading plan (b) which was aimed at this attempt to recovery, got triggered and hit its stop loss before the rise came in. We had to book a loss of 15 points.

1) The Elder Ray readings : Bull Power reduces from -12 to -43 Bear Power rises from -67 to -89 indicating that the Bears are now firmly in the driver's seat as the Nifty seems to be headed downwards. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds whereas the Bears need to breach the levels of 5840 on the Nifty to maintain their downwards momentum.

2) The Nifty continues to close below all its key EMAs and also below its 50DMA(5961). However it has closed above its 100DMA(5830) and also its 200DMA.

3) The stochastics continue to remain in the oversold zone.