Nifty - 07 June 2013 - Trend setting weekend arrives

Oversold Nifty respects key supports but fails below key resistances. 

As discussed yesterday, the Bearish sentiment remained intact, despite the Nifty attempting a pull back above 5950. The Nifty opened with a negative gap of 29 points and rapidly moved downwards into our identified support area of 5870, from where the bounce back started and took the Nifty over to 5920 and above that to 5957 from where again a sell off emerged and the Nifty closed at 5921 with a loss of 3 points. In the mean time, the moving averages now have stacked up in favor of the Bears. Both our trading plans triggered and we were able to book a profit of 50 points in three trades taken yesterday.

1) The Elder Ray readings : Bull Power rises from -78 to -43 Bear Power also rises from -129 to -130 indicating that with the failed bounce back attempt, the Bulls are still out of their safe zone. For today, the Bulls need to overcome the levels of 5995 to regain their lost grounds whereas the Bears need to breach the levels of 5865 to maintain their downwards momentum.

2) The stochastics are still in the oversold zone, but now they could be confirming the downtrend.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs. However, it should be noted that now the key EMAs are stacked inversely and are favoring the Bears.

 

4) In the above chart, the volumes remain muted with the rise in the Nifty indicating that the rise may stall shortly. The MACD continues to fall with the histogram continuing to remain in the negative. The ADX is suggesting a fall in the momentum for the Bears but is still favoring a down move. The Parabolic SAR continues with its Sell signal with a SL now pegged at 6099.

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

a) Around 5970 we will open fresh short positions with a SL of 5995 and a target of 5880. We will add to these short positions only below 5850.

b) Around 5870 we will open fresh long positions with a SL of 5850 and a target of 5920. We will add to these long positions only above 5995.

Happy Trading !!!
 

Also visit Just Nifty and the Nifty Range blogs.


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

Nifty - 07 June 2013 - Trend setting weekend arrives

Oversold Nifty respects key supports but fails below key resistances. 

As discussed yesterday, the Bearish sentiment remained intact, despite the Nifty attempting a pull back above 5950. The Nifty opened with a negative gap of 29 points and rapidly moved downwards into our identified support area of 5870, from where the bounce back started and took the Nifty over to 5920 and above that to 5957 from where again a sell off emerged and the Nifty closed at 5921 with a loss of 3 points. In the mean time, the moving averages now have stacked up in favor of the Bears. Both our trading plans triggered and we were able to book a profit of 50 points in three trades taken yesterday.

1) The Elder Ray readings : Bull Power rises from -78 to -43 Bear Power also rises from -129 to -130 indicating that with the failed bounce back attempt, the Bulls are still out of their safe zone. For today, the Bulls need to overcome the levels of 5995 to regain their lost grounds whereas the Bears need to breach the levels of 5865 to maintain their downwards momentum.

2) The stochastics are still in the oversold zone, but now they could be confirming the downtrend.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs. However, it should be noted that now the key EMAs are stacked inversely and are favoring the Bears.

Nifty - 06 June 2013 - Bearish sentiment remains intact

Nifty attempts a feeble pullback, stays below key levels keeping Bearishness intact. 

As discussed yesterday, Bears were still in control, as the Nifty opened with a mild gap down and then traded with a negative bias in the morning session making a new swing low of 5884, before the Bulls took over and took the Nifty above 5900 and made a intra-day high of 5935 before the Nifty closed at 5924 with a minor gain of 4 points. The Nifty however, traded below key levels keeping the Bearish sentiment intact. Our trading plan(a) triggered and we could book a small profit of 20 points in that trade.

1) The Elder Ray readings : Bull Power reduces from -46 to -78 Bear Power rises from -117 to -129 indicating that even on a positive close, the Bulls are still out of their safe zone and the Bears are marching merrily. For today, the Bulls need to overcome the levels of 6000 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5870 to maintain their downwards momentum.

2) The stochastics are well and deep into the oversold zone.

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

 

4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may be short lived. The MACD continues to fall with the histogram continuing to remain in the negative. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues to give out its sell signal with the SL now pegged at 6125.

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

a) Around 5870 we will open fresh long positions with a SL of 5850 and a target of 5920. We will add to these long positions only above 5955.

b) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5890. 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

Nifty - 06 June 2013 - Bearish sentiment remains intact

Nifty attempts a feeble pullback, stays below key levels keeping Bearishness intact. 

As discussed yesterday, Bears were still in control, as the Nifty opened with a mild gap down and then traded with a negative bias in the morning session making a new swing low of 5884, before the Bulls took over and took the Nifty above 5900 and made a intra-day high of 5935 before the Nifty closed at 5924 with a minor gain of 4 points. The Nifty however, traded below key levels keeping the Bearish sentiment intact. Our trading plan(a) triggered and we could book a small profit of 20 points in that trade.

1) The Elder Ray readings : Bull Power reduces from -46 to -78 Bear Power rises from -117 to -129 indicating that even on a positive close, the Bulls are still out of their safe zone and the Bears are marching merrily. For today, the Bulls need to overcome the levels of 6000 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5870 to maintain their downwards momentum.

2) The stochastics are well and deep into the oversold zone.

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

Nifty - 05 June 2013 - Bears still in control

Bulls try hard, but fail to regain their footing. Nifty approaching key support levels.

As discussed yesterday, we saw Bears driving the Nifty all over again. The Nifty opened almost flat, and gained a quick 40 points to make a high of 5982 and traded in the green for most of the trading session yesterday. However, in the afternoon, the Bears took over the control and the Nifty sold off to make yet another swing low of 5910 before closing at 5919. We did not participate in trade as none of our trading plans got triggered.

1) The Elder Ray readings : Bull Power reduces from -35 to -46 Bear Power also reduces from -129 to -117 indicating that the Bulls are still out of their safe zone and need to act now before it is too late. For today, the Bulls need to overcome the levels of 6010 to regain their lost grounds whereas the Bears need to breach the levels of 5885 to retain their downwards momentum.

2) The stochastics have just entered the oversold zone and are pointing downwards.

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

4) In the above chart, the volumes have kept low with the fall in the Nifty indicating that supports may be around the corner. The MACD continues to fall with the histogram continuing to grow in the negative. The ADX is suggesting favor to the Bears in a market where overall momentum is fading. The Parabolic SAR continues with its Sell signal with the SL now pegged at 6145.

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

a) Around 5940 we will open fresh short positions with a SL of 5965 and a target of 5880. We will add to these short positions only below 5850.

b) Around 5865 we will open fresh long positions with a SL of 5850 and a target of 5940. We will add to these long positions only above 5965.

Happy Trading !!!

 

Also visit Just Nifty and the Nifty Range blogs.



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

Nifty - 05 June 2013 - Bears still in control

Bulls try hard, but fail to regain their footing. Nifty approaching key support levels.

As discussed yesterday, we saw Bears driving the Nifty all over again. The Nifty opened almost flat, and gained a quick 40 points to make a high of 5982 and traded in the green for most of the trading session yesterday. However, in the afternoon, the Bears took over the control and the Nifty sold off to make yet another swing low of 5910 before closing at 5919. We did not participate in trade as none of our trading plans got triggered.

1) The Elder Ray readings : Bull Power reduces from -35 to -46 Bear Power also reduces from -129 to -117 indicating that the Bulls are still out of their safe zone and need to act now before it is too late. For today, the Bulls need to overcome the levels of 6010 to regain their lost grounds whereas the Bears need to breach the levels of 5885 to retain their downwards momentum.

2) The stochastics have just entered the oversold zone and are pointing downwards.

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

Nifty - 04 June 2013 - Bears driving the Nifty

Bears comeback and pushover the Bulls. Trading below 5985, weakness rises.

As discussed yesterday, Bears snatched back the advantage from the Bulls, and pushed over the Bulls out of their safety zone on the Elder Ray. The Nifty opened with a positive gap of 11 points, made a quick high of 6011 and then started getting sold off. Once it broke the key support levels, it broke even the last swing lows of 5937. The Nifty made a low of 5916 before closing at 5939 with a loss of 47 points. Our trading plan(b) got triggered and would have made us a quick 15 to 20 points profit, but looking at the market internals at that point of time, we preferred not to trade as the risk perception of that trade was too much.

1) The Elder Ray readings : Bull Power reduces from +43 to -35 Bear Power rises from -88 to -129 indicating that the Bulls have now lost their footing and the Bears are growing stronger. For today, the Bulls need to overcome the levels of 6030 to regain their lost grounds whereas the Bears need to breach the levels of 5900 to maintain their downwards momentum.

2) The fast stochastics are already in the oversold zone and the slow stochastics are following close behind and pointing downwards.

3) The Nifty has closed below all its key EMAs but 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. The MACD continues to point downwards with the histogram growing in the negative zone. The ADX is now favoring the Bears but suggests loss of overall momentum. The Parabolic SAR continues to give out its Sell signal with a SL now pegged at 6160.

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

a) Around 5995 we will open fresh short positions with a SL of 6015 and a target of 5900. We will add to these short positions only below 5885.

b) Around 5895 we will open fresh long positions with a SL of 5885 and a target of 5945. We will add to these long positions only above 6015.

Happy Trading !!! 

Also visit Just Nifty and the Nifty Range blogs.


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

Nifty - 04 June 2013 - Bears driving the Nifty

Bears comeback and pushover the Bulls. Trading below 5985, weakness rises.

As discussed yesterday, Bears snatched back the advantage from the Bulls, and pushed over the Bulls out of their safety zone on the Elder Ray. The Nifty opened with a positive gap of 11 points, made a quick high of 6011 and then started getting sold off. Once it broke the key support levels, it broke even the last swing lows of 5937. The Nifty made a low of 5916 before closing at 5939 with a loss of 47 points. Our trading plan(b) got triggered and would have made us a quick 15 to 20 points profit, but looking at the market internals at that point of time, we preferred not to trade as the risk perception of that trade was too much.

1) The Elder Ray readings : Bull Power reduces from +43 to -35 Bear Power rises from -88 to -129 indicating that the Bulls have now lost their footing and the Bears are growing stronger. For today, the Bulls need to overcome the levels of 6030 to regain their lost grounds whereas the Bears need to breach the levels of 5900 to maintain their downwards momentum.

2) The fast stochastics are already in the oversold zone and the slow stochastics are following close behind and pointing downwards.

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

Nifty - 03 Jun 2013 - Bears snatch back the advantage

Bears stomp the Bulls and bring the Nifty at the bottom of the 280 point trading range.

On Friday, it was the last day of the month and the Bears ruled the roost for the entire trading session. The Nifty opened with a negative gap of 26 points, did not even try to bridge that gap, made a high of 6106 and then got consistently sold off through out the trading session to make a low of 5976 before closing at 5986 with a whopping loss of 138 points in one single trading session. We were on a trading holiday and missed out on a major move.

1) The Elder Ray readings : Bull Power reduces from +57 to +43 Bear Power rises from -4 to -88 indicating that the Bears are now in the driving seat, however, the Bulls are still in their safe zone, and that the Bears need to prevent them from overcoming 6060. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5960 to maintain their downwards momentum.

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

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

 

4) In the above chart, the volumes remain high with the fall in the Nifty indicating that the fall may continue. The MACD continues to point down with the histogram growing in the negative. The ADX is suggesting a fall in the overall momentum, with the Bulls and the Bears being equal. The Parabolic SAR continues with its sell signal with the SL now pegged at 6171.

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

a) Around 6035 we will open fresh short positions with a SL of 6060 and a target of 5955. We will add to these short positions only below 5910.

b) Around 5940 we will open fresh long positions with a SL of 5910 and a target of 6025. We will add to these long positions only above 6060.

Happy Trading !!! 

Also visit Just Nifty and the Nifty Range blogs.



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

Nifty - 03 Jun 2013 - Bears snatch back the advantage

Bears stomp the Bulls and bring the Nifty at the bottom of the 280 point trading range.

On Friday, it was the last day of the month and the Bears ruled the roost for the entire trading session. The Nifty opened with a negative gap of 26 points, did not even try to bridge that gap, made a high of 6106 and then got consistently sold off through out the trading session to make a low of 5976 before closing at 5986 with a whopping loss of 138 points in one single trading session. We were on a trading holiday and missed out on a major move.

1) The Elder Ray readings : Bull Power reduces from +57 to +43 Bear Power rises from -4 to -88 indicating that the Bears are now in the driving seat, however, the Bulls are still in their safe zone, and that the Bears need to prevent them from overcoming 6060. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5960 to maintain their downwards momentum.

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

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