Nifty - 24 May 2013 - Nifty may turn choppy and volatile

With the huge Bear attack yesterday, Nifty may attempt a bounce in a choppy session.

As discussed in yesterday's post, the Bears had regained their footing. The Nifty opened with a huge gap down of 44 points, filled the gap and immediately got sold off to make a low of 5956 before closing at 5967 with a loss of a whopping 127 points. Our trading plan (a) triggered right at the opening mark and we took that trade and booked out with a loss of 23 points as the SL got hit on that trade. We did not take the trade when part b of our trading plan(b) got triggered as we were away from the markets for the entire session thereafter.

1) The Elder Ray readings : Bull Power reduces from +72 to +21 Bear Power rises from -1 to -104 indicating that the Bears have now really stamped their authority, however, the Bulls are still in their safe zone and can attempt a comeback. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the levels of 5940 to maintain their downwards momentum.

2) The fast stochastics have now gone deep into the oversold zone, with the slow stochastics still in the neutral zone and pointing downwards.

3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs. 

 

4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue as of now. The MACD has given out a clear sell signal with the histogram also falling in the negative. The ADX is now favoring the Bears and the Parabolic SAR has turned into a Sell signal with the SL at 6229.

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

a) Around 6010 we will open fresh short positions with a SL of 6030 and a target of 5955. We will add to these short positions only below 5940.

b) Around 5950 we will open fresh long positions with a SL of 5940 and a target of 6000. We will add to these long positions only above 6030.

Happy Trading !!! 

Also visit Just Nifty and the Nifty Range blogs.


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

Nifty - 24 May 2013 - Nifty may turn choppy and volatile

With the huge Bear attack yesterday, Nifty may attempt a bounce in a choppy session.

As discussed in yesterday's post, the Bears had regained their footing. The Nifty opened with a huge gap down of 44 points, filled the gap and immediately got sold off to make a low of 5956 before closing at 5967 with a loss of a whopping 127 points. Our trading plan (a) triggered right at the opening mark and we took that trade and booked out with a loss of 23 points as the SL got hit on that trade. We did not take the trade when part b of our trading plan(b) got triggered as we were away from the markets for the entire session thereafter.

1) The Elder Ray readings : Bull Power reduces from +72 to +21 Bear Power rises from -1 to -104 indicating that the Bears have now really stamped their authority, however, the Bulls are still in their safe zone and can attempt a comeback. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the levels of 5940 to maintain their downwards momentum.

2) The fast stochastics have now gone deep into the oversold zone, with the slow stochastics still in the neutral zone and pointing downwards.

3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs. 

Nifty - 23 May 2013 - Bears regain their footing

Bears have regained their footing. But need followup to maintain that.

As discussed yesterday, there was Profit booking induced choppiness on the Nifty. The Nifty opened with a positive gap of 13 points and climbed higher. But found resistance at 6148, just below our identified levels of 6150 and 6155. From there the Nifty entered choppy territory and sold of in the later stages to make a low of 6074, again near our identified support level of 6075 and climbed back from there to close at 6095 with a loss of 20 points. Our trading plan (a) triggered and we could book out with a quick profit of 25 points by EOD.

1) The Elder Ray readings : Bull Power reduces from +108 to +72 Bear Power rises from +30 to -1 indicating that the Bears have now regained all their lost grounds. Although the Bulls are pretty safe in their zone now, and about 70 points away from their opponents. For today, the Bulls need to overcome the levels of 6155 to maintain their upwards momentum whereas the Bears need to breach the levels of 6070 to maintain their downwards momentum.

2) The Nifty has closed above all its key DMAs and also above its 21EMA and 13EMA. However, it has closed below its 8EMA (6108) which it needs to cross for more bullish momentum.

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

 

4) In the above chart, the volumes have stagnated with the fall in the Nifty, indicating that the down move may continue for a while now. The MACD is just about to give out the negative divergence, but stops just short of that. The histogram is also not negative as yet. The ADX is suggesting a loss of Bullish momentum and a rise of Bearish momentum. However, it still favors the Bulls. The Parabolic SAR continues with its Buy signal with a SL of 6034.

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

a) Around 6055 we will open fresh long positions with a SL of 6035 and a target of 6135. We will add to these long positions only above 6155.

b) Around 6140 we will open fresh short positions with a SL of 6155 and a target of 6100. We will add to these short positions only below 6035.

Happy Trading !!! 

Also visit Just Nifty and the Nifty Range blogs.


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

Nifty - 23 May 2013 - Bears regain their footing

Bears have regained their footing. But need followup to maintain that.

As discussed yesterday, there was Profit booking induced choppiness on the Nifty. The Nifty opened with a positive gap of 13 points and climbed higher. But found resistance at 6148, just below our identified levels of 6150 and 6155. From there the Nifty entered choppy territory and sold of in the later stages to make a low of 6074, again near our identified support level of 6075 and climbed back from there to close at 6095 with a loss of 20 points. Our trading plan (a) triggered and we could book out with a quick profit of 25 points by EOD.

1) The Elder Ray readings : Bull Power reduces from +108 to +72 Bear Power rises from +30 to -1 indicating that the Bears have now regained all their lost grounds. Although the Bulls are pretty safe in their zone now, and about 70 points away from their opponents. For today, the Bulls need to overcome the levels of 6155 to maintain their upwards momentum whereas the Bears need to breach the levels of 6070 to maintain their downwards momentum.

2) The Nifty has closed above all its key DMAs and also above its 21EMA and 13EMA. However, it has closed below its 8EMA (6108) which it needs to cross for more bullish momentum.

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

Nifty - 22 May 2013 - Profit booking induces choppiness

Amidst bouts of profit booking, the Nifty clings on to critical supports. 

As discussed yesterday, we saw the Bulls take a breather. The Nifty opened flat, and then traded in a narrow band of 35 40 points for most of the trading session. One attempt at 6200 in the afternoon, failed at 6180 and the Nifty closed at 6114 before making a low of 6102. However, the technical outlook still remains bullish in the medium term, albeit in the shorter term we could see choppiness. Our trading plan (a) triggered and missed the target by about 20 points. We could garner a small profit of 45 points by trailing our SL. The trading plan triggered yet again, but it was too late in the day and we did not take that trade.

1) The Elder Ray readings : Bull Power reduces from +164 to +108 Bear Power rises from +81 to +30 indicating that although the Bears have gained much yesterday, they still have some more work to do. The Bulls are sitting happily in their safe zone as yet. For today, the Bulls need to overcome the levels of 6190 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6075 to regain their lost grounds.

2) The fast stochastics are still in the overbought zone, while the slow stochastics are just below it and pointing downwards.

3) The Nifty has closed yet again above all its key EMAs and also above all its key DMAs.

 

4) In the above chart, the volumes have decreased with the fall in the Nifty indicating lack of participation in the down move. The MACD is just about to give a negative diversion, but has not yet given it out. The histogram continues to remain in the positive. The ADX is suggesting a loss of momentum for the Bulls and a gain of momentum for the Bears, but is still favoring the Bulls. The Parabolic SAR continues to give out its Buy signal with a SL now at 6017.

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

a) Around 6075 we will open fresh long positions with a SL of 6050 and a target of 6150. We will add to these long positions only above 6175.

b) Around 6155 we will open fresh short positions with a SL of 6175 and a target of 6110. We will add to these short positions only below 6050.

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 May 2013 - Profit booking induces choppiness

Amidst bouts of profit booking, the Nifty clings on to critical supports. 

As discussed yesterday, we saw the Bulls take a breather. The Nifty opened flat, and then traded in a narrow band of 35 40 points for most of the trading session. One attempt at 6200 in the afternoon, failed at 6180 and the Nifty closed at 6114 before making a low of 6102. However, the technical outlook still remains bullish in the medium term, albeit in the shorter term we could see choppiness. Our trading plan (a) triggered and missed the target by about 20 points. We could garner a small profit of 45 points by trailing our SL. The trading plan triggered yet again, but it was too late in the day and we did not take that trade.

1) The Elder Ray readings : Bull Power reduces from +164 to +108 Bear Power rises from +81 to +30 indicating that although the Bears have gained much yesterday, they still have some more work to do. The Bulls are sitting happily in their safe zone as yet. For today, the Bulls need to overcome the levels of 6190 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6075 to regain their lost grounds.

2) The fast stochastics are still in the overbought zone, while the slow stochastics are just below it and pointing downwards.

3) The Nifty has closed yet again above all its key EMAs and also above all its key DMAs.

Nifty - 21 May 2013 - Bulls take a breather

Nifty hits roadblocks and retreats. Bulls still holding the sway. Buy on dips.

As discussed yesterday, the Nifty stayed Bullish in the morning session. The Nifty opened with a positive gap of 12 points, then effortlessly crossed the psychological level of 6200, before hitting the roadblock at 5230, our identified level of resistance. From there, the Nifty saw profit booking and retreated to the levels of 6146 before closing at 6157, again our identified level of support. Our trading plan (b) got triggered and hit its target, and we could book a handsome profit of 60 points in that trade.

1) The Elder Ray readings : Bull Power rises from +150 to +164 Bear Power also rises from +96 to +81 indicating that despite yesterday's fall in the Nifty, the Bulls still remain strong and the Bears remain out of their safe zone. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 6075 to regain their lost grounds.

2) The stochastics continue to remain in the overbought zone, but are now pointing downwards.

3) The Nifty continues to close well above all its key EMAs and also 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 soon. The MACD continues to move up in the positive terrain, with the Histogram also remaining positive. The ADX is still favoring the Bulls and the Parabolic SAR continues with its Buy signal with a SL of 5998.

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

a) Around 6125, we will open fresh long positions with a SL of 6095 and a target of 6200. We will add to these long positions only above 6225.

b) Around 6210, we will open fresh short positions with a SL of 6225 and a target of 6155. We will add to these short positions only below 6095. 

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 May 2013 - Bulls take a breather

Nifty hits roadblocks and retreats. Bulls still holding the sway. Buy on dips.

As discussed yesterday, the Nifty stayed Bullish in the morning session. The Nifty opened with a positive gap of 12 points, then effortlessly crossed the psychological level of 6200, before hitting the roadblock at 5230, our identified level of resistance. From there, the Nifty saw profit booking and retreated to the levels of 6146 before closing at 6157, again our identified level of support. Our trading plan (b) got triggered and hit its target, and we could book a handsome profit of 60 points in that trade.

1) The Elder Ray readings : Bull Power rises from +150 to +164 Bear Power also rises from +96 to +81 indicating that despite yesterday's fall in the Nifty, the Bulls still remain strong and the Bears remain out of their safe zone. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 6075 to regain their lost grounds.

2) The stochastics continue to remain in the overbought zone, but are now pointing downwards.

3) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.

Nifty - 20 May 2013 - Nifty stays bullish

Bulls rule the roost, as Nifty marches towards all time highs. Bears seen nowhere.

At the outset, let us humbly submit apologies for our absence from the markets and for not updating this blog for over a month now, due to medical priorities in our family. 

During this period, the Nifty has galloped swiftly from levels of 5500 to just about 6200, and we seem to have missed out on a fantastic rally. Having said that, the indications are that the meat of the rally is yet ahead, and this is not the time to look out for market tops as yet.

1) The Elder Ray readings : Bull Power reduces from +160 to +150 Bear Power also reduces from +101 to +96 indicating that the Bulls are clearly in the driver's seat and that the Bears are lagging way behind and are way out of their safe zone. For today, the Bulls need to keep the Nifty above 6230 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 6050 to regain their lost grounds.

2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

3) The stochastics are in the overbought zone and continue to point upwards.

4) In the above chart, the volumes have decreased with the rise in the Nifty indicating a pause at higher levels. The MACD continues to be in the positive as also the MACD Histogram, confirming the bullish undertones. The ADX is also suggesting momentum with the Bulls as of now. The Parabolic SAR continues with its Buy signal with a SL of 5983.

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

a) Around 6155 we will open fresh long positions with a SL of 6125 and a target of 6215. We will add to these long positions only above 6250.

b) Around 6235 we will open fresh short positions with a SL of 6250 and a target of 6175. We will add to these short positions only below 6125.

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 May 2013 - Nifty stays bullish

Bulls rule the roost, as Nifty marches towards all time highs. Bears seen nowhere.

At the outset, let us humbly submit apologies for our absence from the markets and for not updating this blog for over a month now, due to medical priorities in our family. 

During this period, the Nifty has galloped swiftly from levels of 5500 to just about 6200, and we seem to have missed out on a fantastic rally. Having said that, the indications are that the meat of the rally is yet ahead, and this is not the time to look out for market tops as yet.

1) The Elder Ray readings : Bull Power reduces from +160 to +150 Bear Power also reduces from +101 to +96 indicating that the Bulls are clearly in the driver's seat and that the Bears are lagging way behind and are way out of their safe zone. For today, the Bulls need to keep the Nifty above 6230 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 6050 to regain their lost grounds.

2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

3) The stochastics are in the overbought zone and continue to point upwards.