Carnage continues on the Nifty, as Bears go on rampage. Red Friday on the cards.In our yesterday's post, "Still looking Bearish", we had suggested that there would be more pain ahead for the Bulls, and that is exactly what happened. The Nifty opened with a whopping 68 point negative gap at 5754 and right from the word go, the Bulls stamped their authority. The Nifty remained under selling pressure making a low of 5646 before closing at 5656 with a huge loss of 166 points. We could manage to book a profit of 38 points in our intraday trade taken yesterday, and we had to modify our trading plan for that.1) The Elder Ray readings : Bull Power reduces from -28 to -73 Bear Power rises from -79 to -182 indicating that the Bears are now in the driving seat with the Bulls hurt badly. For today, the Bulls need to overcome the levels of 5795 to regain their lost grounds whereas the Bears need to breach the levels of 5610 to maintain their downwards momentum.2) The stochastics are in the oversold zone now and are pointing downwards.3) The nifty has closed below all its key DMAs and also below all its key EMAs. 4) In the above chart, the volumes have risen with the fall in the Nifty indicating that the fall may continue. The MACD is in the negative and is now pointing downwards, indicating further downsides. The ADX is showing strong favor for the Bears. The Parabolic SAR has now turned into a Sell signal with the SL at 5863.5) Considering the above, our trading plan for the day is as under.a) Below 5600, we will open fresh short positions with a SL of 5625 and a target of 5500. We will refrain from any further trading for the day.b) We will not even think of opening any intraday long positions at any levels.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Carnage continues on the Nifty, as Bears go on rampage. Red Friday on the cards.
In our yesterday's post, "Still looking Bearish", we had suggested that there would be more pain ahead for the Bulls, and that is exactly what happened. The Nifty opened with a whopping 68 point negative gap at 5754 and right from the word go, the Bulls stamped their authority. The Nifty remained under selling pressure making a low of 5646 before closing at 5656 with a huge loss of 166 points. We could manage to book a profit of 38 points in our intraday trade taken yesterday, and we had to modify our trading plan for that.
1) The Elder Ray readings : Bull Power reduces from -28 to -73 Bear Power rises from -79 to -182 indicating that the Bears are now in the driving seat with the Bulls hurt badly. For today, the Bulls need to overcome the levels of 5795 to regain their lost grounds whereas the Bears need to breach the levels of 5610 to maintain their downwards momentum.
2) The stochastics are in the oversold zone now and are pointing downwards.
3) The nifty has closed below all its key DMAs and also below all its key EMAs.
Despite yesterday's pullback, Nifty looks bearish as yet. More pain ahead for Bulls.As discussed yesterday, the negative bias continued on the Nifty. The Nifty opened with a minor negative gap at 5806 and then traded bearishly to make a low of 5780. For almost the entire session, the Nifty traded around in a narrow band of 25 points. Late in the day, however, a bounce back was attempted, which got thwarted at 5828 and the Nifty closed at 5822 with a minor gain of 9 points. We did not trade yesterday, as none of our plans got triggered. However, our overall bearish attitude continues.1) The Elder Ray readings : Bull Power reduces from +1 to -28 Bear Power rises from -58 to -79 indicating that despite the positive close, the Bears have got stronger and the Bulls are out of their safe zone yet again. For today, the Bulls need to overcome the levels of 5850 to regain their lost grounds whereas the Bears need to breach the Nifty below 5770 to maintain their downwards momentum.2) The stochastics are in the neutral zone and are pointing horizontal.3) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However it is above its 200DMA(5808) 4) In the above chart, the volumes have remained constant with the Nifty remaining stagnant, indicating indecision amongst the traders. The MACD continues to be in the negative with the histogram also remaining in the negative. The ADX is suggesting a rising momentum for the Bears. The Parabolic SAR continues with its Buy signal with the SL now at 5687.5) Considering the above, our trading plan for the day is as under.a) Around 5810, we will open fresh short positions with a SL of 5835 and a target of 5735. We will add to these short positions only below 5695.b) Around 5715 we will open fresh long positions with a SL of 5695 and a target of 5770. We will add to these long positions only above 5835.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Despite yesterday's pullback, Nifty looks bearish as yet. More pain ahead for Bulls.
As discussed yesterday, the negative bias continued on the Nifty. The Nifty opened with a minor negative gap at 5806 and then traded bearishly to make a low of 5780. For almost the entire session, the Nifty traded around in a narrow band of 25 points. Late in the day, however, a bounce back was attempted, which got thwarted at 5828 and the Nifty closed at 5822 with a minor gain of 9 points. We did not trade yesterday, as none of our plans got triggered. However, our overall bearish attitude continues.
1) The Elder Ray readings : Bull Power reduces from +1 to -28 Bear Power rises from -58 to -79 indicating that despite the positive close, the Bears have got stronger and the Bulls are out of their safe zone yet again. For today, the Bulls need to overcome the levels of 5850 to regain their lost grounds whereas the Bears need to breach the Nifty below 5770 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing horizontal.
3) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However it is above its 200DMA(5808)
Although Nifty sets in equilibrium, the negative outlook remains in the short term.On Friday, we has suggested "Sell on rise to continue", and although we took a two day trading holiday, the Nifty has moved as expected and after a two day rise, the decline has commenced, and now the Nifty stands in neutral zone or equilibrium, with a negative bias amidst high volatility.1) The Elder Ray readings : Bull Power rises from -16 to +1 Bear Power reduces from -101 to -58 indicating that both the Bulls and the Bears are in their respective zones with the Bears having a fickle advantage. For today, the Bulls need to overcome the levels of 5860 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5795 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 and also closed below its 50DMA and 100DMA but above its 200DMA(5805). 4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the downmove may continue. The MACD is in the negative and also the histogram is in the negative. The ADX is suggesting a favor to the Bears in a market where overall momentum is falling. The Parabolic SAR has turned to a Buy signal with the SL of 5683.5) Considering the above, our trading plan for the day is as under.a) Around 5840 we will open fresh short positions with a SL of 5865 and a target of 5780. We will add to these short positions only below 5745.b) Around 5770 we will open fresh long positions with a SL of 5745 and a target of 5825. We will add to these long positions only above 5865.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Although Nifty sets in equilibrium, the negative outlook remains in the short term.
On Friday, we has suggested "Sell on rise to continue", and although we took a two day trading holiday, the Nifty has moved as expected and after a two day rise, the decline has commenced, and now the Nifty stands in neutral zone or equilibrium, with a negative bias amidst high volatility.
1) The Elder Ray readings : Bull Power rises from -16 to +1 Bear Power reduces from -101 to -58 indicating that both the Bulls and the Bears are in their respective zones with the Bears having a fickle advantage. For today, the Bulls need to overcome the levels of 5860 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5795 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 and also closed below its 50DMA and 100DMA but above its 200DMA(5805).
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