After yesterday's violent gyrations, Nifty trend can get clearer in today's session.As discussed yesterday, we saw the Nifty still in equilibrium, with both the Bears and the Bulls asserting their stamp of authority on the Nifty. The Nifty opened with a negative gap of 6 points and then drifted down to make a low of 5792, before the Bulls took over and swept the Nifty past 5900 to make a high of 5920 before closing at 5909 with a gain of 58 points. What looked as a gloomy day of trade, turned out into a rosy scenario by the end of day. Both our trading plans hit their stop losses and we lost 40 points. However, we must note, that the Nifty breached our identified extremes by just 5 points on either side.1) The Elder Ray readings : Bull Power rises from +36 to +55 Bear Power also rises from -16 to -74 indicating that Nifty is entering a violent phase with both the Bulls and Bears getting stronger and being in their respective safe zones. For today, the Bulls need to overcome the levels of 5930 to maintain their upwards momentum whereas the Bears need to breach the levels of 5790 to maintain their downwards momentum.2) The Nifty has closed above all its key EMAs and also above its 100DMA and its 200DMA. However, it has closed below its 50DMA.3) The stochastics are just below the overbought zone and are pointing across each other. 4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is rising from the negative zone, but the histogram being positive is suggesting a pause. The ADX is suggesting a rise in the downwards momentum, and a fall in the upwards momentum and is actually favoring the Bears now. The Parabolic SAR continues with its buy signal with the SL now at 5731.5) Considering the above, our trading plan for the day is as under.a) Around 5850 we will open fresh long positions with a SL of 5830 and a target of 5945. We will add to these long positions only above 5980.b) Around 5960 we will open fresh short positions with a SL of 5980 and a target of 5870. We will add to these short positions only below 5830.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
After yesterday's violent gyrations, Nifty trend can get clearer in today's session.
As discussed yesterday, we saw the Nifty still in equilibrium, with both the Bears and the Bulls asserting their stamp of authority on the Nifty. The Nifty opened with a negative gap of 6 points and then drifted down to make a low of 5792, before the Bulls took over and swept the Nifty past 5900 to make a high of 5920 before closing at 5909 with a gain of 58 points. What looked as a gloomy day of trade, turned out into a rosy scenario by the end of day. Both our trading plans hit their stop losses and we lost 40 points. However, we must note, that the Nifty breached our identified extremes by just 5 points on either side.
1) The Elder Ray readings : Bull Power rises from +36 to +55 Bear Power also rises from -16 to -74 indicating that Nifty is entering a violent phase with both the Bulls and Bears getting stronger and being in their respective safe zones. For today, the Bulls need to overcome the levels of 5930 to maintain their upwards momentum whereas the Bears need to breach the levels of 5790 to maintain their downwards momentum.
2) The Nifty has closed above all its key EMAs and also above its 100DMA and its 200DMA. However, it has closed below its 50DMA.
3) The stochastics are just below the overbought zone and are pointing across each other.
Nifty loses much of the gains, returns to middle of trading zone, equilibrium stays.As discussed in yesterday's post "Nifty enters consolidation phase", we saw the Bullish up move pause and the Bears regain their footing. The Nifty opened with a 29 point gap down and never recovered those losses. The Nifty then drifted listlessly for the entire trading session, in a narrow band of 30 points, before getting sold off to make a low of 5842 and closing at 5851, with a loss of 63 points. Our trading plan (a) got triggered and hit the stop loss. We booked out with a loss of 26 points.1) The Elder Ray readings : Bull Power reduces from +93 to +36 Bear Power rises from +34 to -16 indicating that the Bears have recovered fully and that now both the Bulls and the Bears share the control over the Nifty. For today, the Bulls need to overcome the levels of 5895 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5835 to maintain their downwards momentum.2) The Nifty has now closed below all its key EMAs and also below its 50DMA and 100DMA. However, the Nifty has closed above its 200DMA.3) The stochastics are now out of the overbought zone and are pointing downwards. 4) In the above chart, the volumes have fallen with the fall in the Nifty indicating that the fall may get arrested soon. The MACD continues its positive signal, but indicates a pause, with the Histogram still being in the positive. The ADX is showing equal weightage for either way swings. The Parabolic SAR continues with its Buy signal with the SL now at 5715.5) Considering the above, our trading plan for the day is as under.a) Around 5890 we will open fresh short positions with a SL of 5910 and a target of 5845. We will add to these short positions only below 5820.b) Around 5835 we will open fresh long positions with a SL of 5820 and a target of 5875. We will add to these long positions only above 5910.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty loses much of the gains, returns to middle of trading zone, equilibrium stays.
As discussed in yesterday's post "Nifty enters consolidation phase", we saw the Bullish up move pause and the Bears regain their footing. The Nifty opened with a 29 point gap down and never recovered those losses. The Nifty then drifted listlessly for the entire trading session, in a narrow band of 30 points, before getting sold off to make a low of 5842 and closing at 5851, with a loss of 63 points. Our trading plan (a) got triggered and hit the stop loss. We booked out with a loss of 26 points.
1) The Elder Ray readings : Bull Power reduces from +93 to +36 Bear Power rises from +34 to -16 indicating that the Bears have recovered fully and that now both the Bulls and the Bears share the control over the Nifty. For today, the Bulls need to overcome the levels of 5895 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5835 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs and also below its 50DMA and 100DMA. However, the Nifty has closed above its 200DMA.
3) The stochastics are now out of the overbought zone and are pointing downwards.
As the Bullish up move pauses and Bears try to regain footing, Nifty consolidates.As discussed yesterday, the Bull march paused on the Nifty after 5 trading sessions. The Nifty opened flat in the morning, made a high of 5952 and then got sold off to make a low of 5894, bounced back again to reach out to the high point but failed and closed at 5914 with a loss of 28 points. During this volatility, we took two trades, one as per plan and the other spontaneous and booked a profit of 38 points in both trades put together.1) The Elder Ray readings : Bull Power reduces from +121 to +93 Bear Power rises from +80 to +34 indicating that though the Bears have recovered some grounds, they need more to do. For today, the Bulls need to overcome the levels of 5965 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5865 to regain their lost grounds.2) The Nifty has closed above all its key EMAs and also above its 100DMA and 200DMA. However, it has closed below its 50DMA.3) The stochastics are in the overbought zone and are pointing downwards. 4) In the above chart, the volumes have remained stagnant with a fall in the Nifty indicating lack of participation. The MACD continues to rise and the histogram continues to remain positive. The ADX is suggesting a fall in the bullish momentum and a rise in the bearish momentum, but is still favoring the bulls. The Parabolic SAR continues with its buy signal with the SL now at 5699.5) Considering the above, our trading plan for the day is as under.a) Around 5875 we will open fresh long positions with a SL of 5850 and a target of 5935. We will add to these long positions only above 5975.b) Around 5950 we will open fresh short positions with a SL of 5975 and a target of 5885. We will add to these short positions only below 5850.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
As the Bullish up move pauses and Bears try to regain footing, Nifty consolidates.
As discussed yesterday, the Bull march paused on the Nifty after 5 trading sessions. The Nifty opened flat in the morning, made a high of 5952 and then got sold off to make a low of 5894, bounced back again to reach out to the high point but failed and closed at 5914 with a loss of 28 points. During this volatility, we took two trades, one as per plan and the other spontaneous and booked a profit of 38 points in both trades put together.
1) The Elder Ray readings : Bull Power reduces from +121 to +93 Bear Power rises from +80 to +34 indicating that though the Bears have recovered some grounds, they need more to do. For today, the Bulls need to overcome the levels of 5965 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5865 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above its 100DMA and 200DMA. However, it has closed below its 50DMA.
3) The stochastics are in the overbought zone and are pointing downwards.
Bulls pause in their up move, Bears not active as yet, Nifty gets range bound.As discussed yesterday, we saw the Bulls takeover the Nifty, as they yet again breached the previous day's highs. However, they could not retain the same momentum by the end of the trading session, and the Nifty closed with a minor loss of 3 points at 5942. The Nifty remained in a 40 point range, which was not trade able. We were happy to wait on the sidelines without plunging into any trade.1) The Elder Ray readings : Bull Power rises from +118 to +121 Bear Power reduces from +48 to +80, indicating that the Bulls are really in control and that the Bears are now pretty much out of the reckoning. For today, the Bulls need to overcome the levels of 5990 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5865 to regain their lost grounds.2) The Nifty has closed above all its key EMAs and also above its 100DMA and 200DMA. However, it has for once, closed below its 50DMA.3) The stochastics have now entered the overbought zone. 4) In the above chart, the Nifty has shown a shooting start pattern, which at the top of a swing up, is known to be quite bearish. The volumes have decreased with the fall in the Nifty indicating that the down move may find supports nearby. The MACD continues to rise from the negative zone, with the histogram rising merrily. The ADX is suggesting a pause in the up move but is still in strong favor of the Bulls. The Parabolic SAR continues with its buy signal with the SL now pegged at 5681.5) Considering the above, our trading plan for the day is as under.a) Around 5900 we will open fresh long positions with a SL of 5880 and a target of 5965. We will add to these long positions only above 6005. b) Around 5990 we will open fresh short positions with a SL of 6005 and a target of 5935. We will add to these short positions only below 5880.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Bulls pause in their up move, Bears not active as yet, Nifty gets range bound.
As discussed yesterday, we saw the Bulls takeover the Nifty, as they yet again breached the previous day's highs. However, they could not retain the same momentum by the end of the trading session, and the Nifty closed with a minor loss of 3 points at 5942. The Nifty remained in a 40 point range, which was not trade able. We were happy to wait on the sidelines without plunging into any trade.
1) The Elder Ray readings : Bull Power rises from +118 to +121 Bear Power reduces from +48 to +80, indicating that the Bulls are really in control and that the Bears are now pretty much out of the reckoning. For today, the Bulls need to overcome the levels of 5990 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5865 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above its 100DMA and 200DMA. However, it has for once, closed below its 50DMA.
3) The stochastics have now entered the overbought zone.
Within a span of 4 sessions, Bulls take charge of the Nifty. Volatile days ahead.As discussed on Friday, it turned out to be a crucial week end on the Nifty. The Nifty opened with a positive gap of 20 points and not only managed to hold on to that gap, but actually build heavily on that gap to make a high of 5953 before closing at 5946, with a gain of a whopping 82 points. Thus, on the weekly chart, the Nifty has made a bullish engulfing pattern, which is indicating that now the trend is truly in favor of the Bulls. However, a word of caution may not be out of place, that the volatility is on the rise, and the up move on the Nifty now onwards will be punctuated with fairly swift and deep corrections. Our trades on Friday, attempting to go short, were stopped out, and in the process we lost 35 points on that day.1) The Elder Ray readings : Bull Power rises from +62 to +118 Bear Power reduces from -15 to +48, indicating that now the Bears are out of their safe zone, and that the Bulls are firmly in the driver's seat. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5850 to regain their lost grounds.2) The Nifty has now closed above all its key EMAs and also above all its key DMAs. However, the key EMAs are stacked inversely as of now, which the Bulls will have to take care of.3) The fast stochastics are already in the overbought zone, with the slow stochastics following closely.4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD is rising with a positive divergence, with the histogram also rising in the positive zone. The ADX is now clearly favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now pegged at 5669.5) Considering the above, our trading plan for the day is as under.a) Around 5905 we will open fresh long positions with a SL of 5880 and a target of 5965. We will add to these long positions only above 6010.b) Around 5990 we will open fresh short positions with a SL of 6010 and a target of 5940. We will add to these short positions only below 5880.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Within a span of 4 sessions, Bulls take charge of the Nifty. Volatile days ahead.
As discussed on Friday, it turned out to be a crucial week end on the Nifty. The Nifty opened with a positive gap of 20 points and not only managed to hold on to that gap, but actually build heavily on that gap to make a high of 5953 before closing at 5946, with a gain of a whopping 82 points. Thus, on the weekly chart, the Nifty has made a bullish engulfing pattern, which is indicating that now the trend is truly in favor of the Bulls. However, a word of caution may not be out of place, that the volatility is on the rise, and the up move on the Nifty now onwards will be punctuated with fairly swift and deep corrections. Our trades on Friday, attempting to go short, were stopped out, and in the process we lost 35 points on that day.
1) The Elder Ray readings : Bull Power rises from +62 to +118 Bear Power reduces from -15 to +48, indicating that now the Bears are out of their safe zone, and that the Bulls are firmly in the driver's seat. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5850 to regain their lost grounds.
2) The Nifty has now closed above all its key EMAs and also above all its key DMAs. However, the key EMAs are stacked inversely as of now, which the Bulls will have to take care of.
3) The fast stochastics are already in the overbought zone, with the slow stochastics following closely.
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Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.
