Nifty continues its bearish outlook as on expiry we have weekly & monthly close.As discussed in our last post, the downwards bias remained on the Nifty. The Nifty opened with a 20 point negative gap down, then traded for the entire day within a narrow band of 40 points, never showing even a glimpse of strength. All attempts to rise were sold off quickly. At the end, the Nifty closed with a minor gain of 7 points. None of our trading plans got triggered, and we were happy sitting on the sidelines.1) The Elder Ray readings : Bull Power reduces from -40 to -86 Bear Power also reduces from -134 to -130 indicating that despite a green candle, the Nifty is still under the hold of the Bears. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the levels of 5595 to maintain their downwards momentum.2) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has taken support at its 200DMA(5624).3) The stochastics continue to remain well and deep into the oversold zone. 4) In the above chart, the volumes have depleted with the small rise in the Nifty indicating that the rise may not continue. The MACD continues to fall with the histogram remaining in the negative. The ADX is also suggesting a rise in the downwards momentum and a fall in the up move. The Parabolic SAR continues with its Sell signal with a SL at 5879.5) We have taken a day off from trading and are enjoying a extended holiday.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty continues its bearish outlook as on expiry we have weekly & monthly close.
As discussed in our last post, the downwards bias remained on the Nifty. The Nifty opened with a 20 point negative gap down, then traded for the entire day within a narrow band of 40 points, never showing even a glimpse of strength. All attempts to rise were sold off quickly. At the end, the Nifty closed with a minor gain of 7 points. None of our trading plans got triggered, and we were happy sitting on the sidelines.
1) The Elder Ray readings : Bull Power reduces from -40 to -86 Bear Power also reduces from -134 to -130 indicating that despite a green candle, the Nifty is still under the hold of the Bears. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the levels of 5595 to maintain their downwards momentum.
2) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has taken support at its 200DMA(5624).
3) The stochastics continue to remain well and deep into the oversold zone.
Nifty continues to remain Bearish as we approach series expiry. Sell on rises.As discussed yesterday, the Nifty remained in consolidation mode for almost the entire morning session. Owing to positive global cues, the Nifty opened with a hefty positive gap of 47 points and traded in the positive terrain for the entire morning session. However, later in the day, as the Bulls were not able to cross the day's high, which incidentally was our identified resistance zone, the Bears took over, and the Nifty got sold off, not only to breach the previous day's lows but to make new intermediate low at 5624 before closing the day at 5634 with a loss of 18 points. We took a short trade as per our trading plan (b) and could book a nice profit of 55 points in the trade.1) The Elder Ray readings : Bull Power rises from -87 to -40 Bear Power reduces from -147 to -134 indicating that though the Bulls have recovered somewhat, the Bears are still in the drivers seat. For today, the Bulls need to overcome the levels of 5740 to regain their lost grounds whereas the Bears need to breach the levels of 5605 to maintain their downwards momentum.2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has taken support just above its 200DMA(5621).3) The stochastics are well and deep into the oversold zone.4) In the above chart, the volumes have reduced with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to languish in the negative with the histogram also growing in the negative zone. The ADX is suggesting a drop in the downwards momentum and a rise in the upwards momentum. The Parabolic SAR continues with its sell signal with a SL now at 5909.5) Considering the above, our trading plan for the day is as under.a) Around 5685 we will open fresh short positions with a SL of 5705 and a target of 5600. We will add to these short positions only below 5565.b) Around 5585 we will open fresh long positions with a SL of 5565 and a target of 5665. We will add to these long positions only above 5705.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty continues to remain Bearish as we approach series expiry. Sell on rises.
As discussed yesterday, the Nifty remained in consolidation mode for almost the entire morning session. Owing to positive global cues, the Nifty opened with a hefty positive gap of 47 points and traded in the positive terrain for the entire morning session. However, later in the day, as the Bulls were not able to cross the day's high, which incidentally was our identified resistance zone, the Bears took over, and the Nifty got sold off, not only to breach the previous day's lows but to make new intermediate low at 5624 before closing the day at 5634 with a loss of 18 points. We took a short trade as per our trading plan (b) and could book a nice profit of 55 points in the trade.
1) The Elder Ray readings : Bull Power rises from -87 to -40 Bear Power reduces from -147 to -134 indicating that though the Bulls have recovered somewhat, the Bears are still in the drivers seat. For today, the Bulls need to overcome the levels of 5740 to regain their lost grounds whereas the Bears need to breach the levels of 5605 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has taken support just above its 200DMA(5621).
3) The stochastics are well and deep into the oversold zone.
After a sustained fall of 5 days, the Nifty may enter a consolidation phase now.As discussed on Friday, the Nifty continued to fall and made a new intermediate low of 5632 before closing at 5651 with a loss of 7 points. Earlier, the Nifty opened flat and traded with a negative bias for the entire trading session. During the last hour of trade, the Bulls attempted a rise, and took the Nifty to 5691 where they lacked a follow through and the Nifty immediately got sold off to breach the opening mark and close at 5651. We did not take any trade on Friday.1) The Elder Ray readings : Bull Power reduces from -42 to -87 Bear Power also reduces from -152 to -147, indicating that the Nifty may have entered a consolidation phase now with the Bears taking some time off and the Bulls faltering in their course. For today, the Bulls need to overcome the levels of 5755 to regain their lost grounds whereas the Bears need to breach the Nifty below 5605 to maintain their downwards momentum.2) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it seems to have taken a support at its 200DMA.3) The stochastics are now in extremely deep oversold zone and a bounce back on the Nifty may be expected. 4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested as of now. The MACD continues to weaken with the histogram growing in the negative. The ADX is showing a loss of momentum for the Bears but still favors the down move. The Parabolic SAR continues with its sell signal with the SL now at 5933.5) Considering the above, our trading plan for the day is as under.a) Above 5655, we will open fresh long positions with a SL of 5630 and a target of 5705. We will add to these long positions only above 5725.b) Around 5710, we will open fresh short positions with a SL of 5725 and a target of 5760. We will add to these short positions only below 5630.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
After a sustained fall of 5 days, the Nifty may enter a consolidation phase now.
As discussed on Friday, the Nifty continued to fall and made a new intermediate low of 5632 before closing at 5651 with a loss of 7 points. Earlier, the Nifty opened flat and traded with a negative bias for the entire trading session. During the last hour of trade, the Bulls attempted a rise, and took the Nifty to 5691 where they lacked a follow through and the Nifty immediately got sold off to breach the opening mark and close at 5651. We did not take any trade on Friday.
1) The Elder Ray readings : Bull Power reduces from -42 to -87 Bear Power also reduces from -152 to -147, indicating that the Nifty may have entered a consolidation phase now with the Bears taking some time off and the Bulls faltering in their course. For today, the Bulls need to overcome the levels of 5755 to regain their lost grounds whereas the Bears need to breach the Nifty below 5605 to maintain their downwards momentum.
2) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it seems to have taken a support at its 200DMA.
3) The stochastics are now in extremely deep oversold zone and a bounce back on the Nifty may be expected.
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