With a violent consolidation, the Nifty is poised undecided about further direction.In our yesterday's post, we had questioned the previous day's trade as a Bullish recovery or a Eyewash?. Yesterday's trading session was a clear reflection on that. The Nifty opened with a 35 point positive gap up at 5777 and made a high of 5809 continuing with the recovery mode, and then suddenly got sold off to levels below 5700 and to 5677 just 1 point above previous day's low, losing 130 points in that move. Post that, the Nifty again got into a fast recovery mode and came above 5760 within almost no time. The rest of the session, the Nifty was found groping for direction and closed at 5728 with a nett loss of 14 points. We took two trades as per our trading plans and could book a total profit of 120 points in those trades.Summary : The Nifty is poised waiting for further direction, albeit with the medium term trend remaining bearish. Bounces should find resistance around 5770 to 5800 range, with a support in the 5650 to 5670 zone. 1) The Elder Ray readings : Bull Power rises from -133 to -54 Bear Power reduces from -209 to -186 indicating that the Bulls although have recovered a lot, they have much more work to do as yet. For today, the Bulls need to overcome the levels of 5840 to regain their lost grounds whereas the Bears need to breach the levels of 5645 to maintain their downwards momentum.2) The stochastics continue to remain in the oversold zone.3) The Nifty continues to close below all its key EMAs and also below all its key DMAs. 4) In the above chart the volumes remain high with the fall in the Nifty indicating that the down move may continue. The MACD continues its downward journey with the histogram also growing in the negative. The ADX is suggesting a fall in the bearish momentum and a rise in the bullish momentum, which is indicative of a consolidation. The Parabolic SAR continues with its sell signal with the SL now shifted to 5993.5) Considering the above, our trading plan for the day is as under.a) Around 5785 we will open fresh short positions with a SL of 5805 and a target of 5685. We will add to these short positions only below 5655. b) Around 5675 we will open fresh long positions with a SL of 5655 and a target of 5760. We will add to these long positions only above 5805.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
With a violent consolidation, the Nifty is poised undecided about further direction.
In our yesterday's post, we had questioned the previous day's trade as a Bullish recovery or a Eyewash?. Yesterday's trading session was a clear reflection on that. The Nifty opened with a 35 point positive gap up at 5777 and made a high of 5809 continuing with the recovery mode, and then suddenly got sold off to levels below 5700 and to 5677 just 1 point above previous day's low, losing 130 points in that move. Post that, the Nifty again got into a fast recovery mode and came above 5760 within almost no time. The rest of the session, the Nifty was found groping for direction and closed at 5728 with a nett loss of 14 points. We took two trades as per our trading plans and could book a total profit of 120 points in those trades.
Summary : The Nifty is poised waiting for further direction, albeit with the medium term trend remaining bearish. Bounces should find resistance around 5770 to 5800 range, with a support in the 5650 to 5670 zone.
1) The Elder Ray readings : Bull Power rises from -133 to -54 Bear Power reduces from -209 to -186 indicating that the Bulls although have recovered a lot, they have much more work to do as yet. For today, the Bulls need to overcome the levels of 5840 to regain their lost grounds whereas the Bears need to breach the levels of 5645 to maintain their downwards momentum.
2) The stochastics continue to remain in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
Nifty recovered 79 points from the day's low, yet remains in a "Sell on rise" mode.In our yesterday's post, we had suggested "Bearishness to stay". The Nifty opened with a negative gap of 17 points at 5738 and immediately slid below 5700 and made a low of 5676 in the first hour of trade. The Nifty then traded bearishly for most of the 5 hours of the trading session after that. However, in the last hour of trade, the Nifty made a recovery, crossed the initial day's highs and made a high at 5752 before closing at 5742. Yes, we got whipsawed in this mayhem and booked a total loss of 35 points in two trades taken, both the trades going wrong. The point to be noted, is that Nifty closed in the red despite all this mayhem of recovery.1) The Elder Ray readings : Bull Power reduces from -47 to -133 Bear Power rises from -161 to -209 indicating that despite the Bulls staging that recovery, they are still not to be favored. For today, the Bulls need to overcome the levels of 5860 to regain their lost grounds whereas the Bears need to breach the Nifty below 5650 to maintain their downwards momentum.2) The stochastics are well and deep into the oversold zone are are trying to look up.3) The Nifty continues to close below all its key EMAs and also below all its key DMAs. 4) In the above chart, the volumes have increased with formation of a pin bar at the bottom of the chart, indicating that the fall may get arrested. The MACD continues its plunge downwards with the histogram too growing in the negative. The ADX is suggesting a sudden rise in the bearish momentum. The Parabolic SAR continues with its sell signal with the SL now at 6028.5) Considering the above, our trading plan for the day is as under.a) Around 5785 we will open fresh short positions with a SL of 5805 and a target of 5700. We will add to these short positions only below 5680.b) Around 5695 we will open fresh long positions with a SL of 5680 and a target of 5760. We will add to these long positions only above 5805.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty recovered 79 points from the day's low, yet remains in a "Sell on rise" mode.
In our yesterday's post, we had suggested "Bearishness to stay". The Nifty opened with a negative gap of 17 points at 5738 and immediately slid below 5700 and made a low of 5676 in the first hour of trade. The Nifty then traded bearishly for most of the 5 hours of the trading session after that. However, in the last hour of trade, the Nifty made a recovery, crossed the initial day's highs and made a high at 5752 before closing at 5742. Yes, we got whipsawed in this mayhem and booked a total loss of 35 points in two trades taken, both the trades going wrong. The point to be noted, is that Nifty closed in the red despite all this mayhem of recovery.
1) The Elder Ray readings : Bull Power reduces from -47 to -133 Bear Power rises from -161 to -209 indicating that despite the Bulls staging that recovery, they are still not to be favored. For today, the Bulls need to overcome the levels of 5860 to regain their lost grounds whereas the Bears need to breach the Nifty below 5650 to maintain their downwards momentum.
2) The stochastics are well and deep into the oversold zone are are trying to look up.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
On the last day of the month, Nifty remains Bearish. Down move set to accelerate.As discussed yesterday, "Sell on rise" continued on the Nifty. The Nifty opened with a small positive gap of 4 points and then awaiting the RBI monetary policy announcement, traded in a small range of 25 points between 5845 on the high and 5820 on the lower side. Just before the policy announcement, the Nifty made a high of 5861 which got quickly sold into and the Nifty breached the day's low, the week's low and the month's low to make a new low of 5748 before closing at 5755 with a whopping loss of 77 points. We took a trade on the short side and could book a profit of 25 points by EOD.1) The Elder Ray readings : Bull Power rises from -48 to -47 Bear Power also rises from -108 to -161 indicating that the Bears are gaining strength and momentum and that the Bulls need to come back fast. For today, the Bulls need to overcome the levels of 5885 to regain their lost grounds whereas the Bears need to push the Nifty below the levels of 5720 to maintain their downwards momentum.2) The stochastics have just entered the oversold zone and are still pointing downwards.3) The Nifty has yet again closed below all its key EMAs and also below 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. The MACD continues to point downwards with the histogram growing in the negative. The ADX is now suggesting a rise in the bearish momentum with the overall directional momentum also accelerating. The Parabolic SAR continues with its Sell signal with the SL now at 6059.5) Considering the above, our trading plan for the day is as under. a) Around 5805 we will open fresh short positions with a SL of 5825 and a target of 5725. We will add to these short positions only below 5690.b) Around 5710 we will open fresh long positions with a SL of 5690 and a target of 5790. We will add to these long positions only above 5825.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
On the last day of the month, Nifty remains Bearish. Down move set to accelerate.
As discussed yesterday, "Sell on rise" continued on the Nifty. The Nifty opened with a small positive gap of 4 points and then awaiting the RBI monetary policy announcement, traded in a small range of 25 points between 5845 on the high and 5820 on the lower side. Just before the policy announcement, the Nifty made a high of 5861 which got quickly sold into and the Nifty breached the day's low, the week's low and the month's low to make a new low of 5748 before closing at 5755 with a whopping loss of 77 points. We took a trade on the short side and could book a profit of 25 points by EOD.
1) The Elder Ray readings : Bull Power rises from -48 to -47 Bear Power also rises from -108 to -161 indicating that the Bears are gaining strength and momentum and that the Bulls need to come back fast. For today, the Bulls need to overcome the levels of 5885 to regain their lost grounds whereas the Bears need to push the Nifty below the levels of 5720 to maintain their downwards momentum.
2) The stochastics have just entered the oversold zone and are still pointing downwards.
3) The Nifty has yet again closed below all its key EMAs and also below all its key DMAs.
On a event day, the Nifty stands bearish with "Sell on rise" mode. New lows possible.In our yesterday's post, we had suggested that all the attempts at any bounce may get sold into as the "Bearish momentum may continue" on the Nifty. The Nifty opened with a negative gap of 16 points at 5870 then made a quick intraday high of 5886 and then in a choppy but bearish trading session, made a intraday low of 5826 before closing at 5832 with a loss of 55 points. We took one trade on the short side and garnered a profit of 18 points in that trade.1) The Elder Ray readings : Bull Power reduces from -7 to -48 Bear Power rises from -82 to -108 indicating that the Bulls have now got themselves in deeper trouble. For today, the Bulls need to overcome the levels of 5920 to regain their lost grounds whereas the Bears need to breach the levels of 5810 to maintain their downwards momentum.2) The stochastics are fast approaching the oversold zone, but are not there yet, indicating possibility of a further down move.3) The Nifty has now closed below all its key EMAs and also below all its key DMAs. 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 is asserting its negative diversion with the histogram also growing in the negative. The ADX is suggesting a rise in strength of the Bears and is also favoring them. The Parabolic SAR continues with its Sell signal with the SL now at 6078.5) Considering the above, our trading plan for the day is as under.a) Around 5885 we will open fresh short positions with a SL of 5905 and a target of 5815. We will add to these short positions only below 5770.b) Around 5790 we will open fresh long positions with a SL of 5770 and a target of 5855. We will add to these long positions only above 5905.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
On a event day, the Nifty stands bearish with "Sell on rise" mode. New lows possible.
In our yesterday's post, we had suggested that all the attempts at any bounce may get sold into as the "Bearish momentum may continue" on the Nifty. The Nifty opened with a negative gap of 16 points at 5870 then made a quick intraday high of 5886 and then in a choppy but bearish trading session, made a intraday low of 5826 before closing at 5832 with a loss of 55 points. We took one trade on the short side and garnered a profit of 18 points in that trade.
1) The Elder Ray readings : Bull Power reduces from -7 to -48 Bear Power rises from -82 to -108 indicating that the Bulls have now got themselves in deeper trouble. For today, the Bulls need to overcome the levels of 5920 to regain their lost grounds whereas the Bears need to breach the levels of 5810 to maintain their downwards momentum.
2) The stochastics are fast approaching the oversold zone, but are not there yet, indicating possibility of a further down move.
3) The Nifty has now closed below all its key EMAs and also below all its key DMAs.
Nifty looks bearish and all attempts at any bounce may get sold off. 5850 next support.As discussed on Friday, we saw a Bearish start to the new series of trade. The Nifty opened with a positive gap of 30 points at 5938, made a quick high of 5944 and then immediately slipped off the cliff to make a low 5898 and then kept on making new lows each hour of trade. The Nifty finally closed at 5886 after making the day's low at 5869. There were a couple of sharp bounce backs but both got swiftly sold into.1) The Elder Ray readings : Bull Power reduces from +29 to -7 Bear Power rises from -66 to -82 indicating that the Bears have now got firmly into the driver's seat and that the Bulls have surrendered their safe zone. For today, the Bulls need to overcome the levels of 5950 to regain their lost grounds whereas the Bears need to breach the Nifty below 5855 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 below its 50DMA. However it has closed above its 100DMA(5861) and 200DMA(5862) 4) In the above chart, the volumes have remained high with the fall in the Nifty indicating that the fall may continue. The MACD has now given out a clear sell signal with the histogram also falling in the negative. The ADX is also suggesting a rise in the bearish momentum and a fall in the bullish momentum. The Parabolic SAR continues with its sell signal with the SL now at 6089.5) Considering the above, our trading plan for the day is as under.a) Around 5930 we will open fresh short positions with a SL of 5950 and a target of 5865. We will add to these short positions only below 5845. b) Around 5855 we will open fresh long positions with a SL of 5845 and a target of 5910. We will add to these long positions only above 5950.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty looks bearish and all attempts at any bounce may get sold off. 5850 next support.
As discussed on Friday, we saw a Bearish start to the new series of trade. The Nifty opened with a positive gap of 30 points at 5938, made a quick high of 5944 and then immediately slipped off the cliff to make a low 5898 and then kept on making new lows each hour of trade. The Nifty finally closed at 5886 after making the day's low at 5869. There were a couple of sharp bounce backs but both got swiftly sold into.
1) The Elder Ray readings : Bull Power reduces from +29 to -7 Bear Power rises from -66 to -82 indicating that the Bears have now got firmly into the driver's seat and that the Bulls have surrendered their safe zone. For today, the Bulls need to overcome the levels of 5950 to regain their lost grounds whereas the Bears need to breach the Nifty below 5855 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 below its 50DMA. However it has closed above its 100DMA(5861) and 200DMA(5862)
|
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.
