Bulls have regained their footing, but the future of the up move depends on 5690.As discussed in our last post, the Bulls had regained their footing, and they ensured that the Nifty remained buoyant and gave a positive close in-spite of a holiday in front. The Nifty opened with a 16 points positive gap up and then traded in a narrow range. The low of 5690 made in the first hour of trade was well defended by the Bulls for the entire trading session, which resulted in the Nifty rising above the day's high established earlier to make a new weekly high of 5755 before closing at 5742 with a gain of 43 points. We booked a loss of 23 points in a trade taken on the short side.Summary : Although the Bulls have regained some control, they have much to do to retain that position. The Bears are not out of the picture as yet and a breach of 5690 would trigger a major breakdown. 1) The Elder Ray readings : Bull Power rises from +5 to +49 Bear Power reduces from -121 to -16 indicating that the Bulls have gained and the Bears have lost grounds on Wednesday. However, they are both in their safe zones, making the Nifty neutral as of now. For today, the Bulls need to overcome the levels of 5765 to maintain their upwards momentum whereas the Bears need to breach the levels of 5690 to maintain their downwards momentum.2) The stochastics are in the neutral zone and are pointing upwards.3) The Nifty has closed above its 8EMA and 13EMA. However, it has closed below its 21EMA and also below all its key DMAs. Moreover, the EMAs are stacked in the favor of the Bears. 4) In the above chart, the volumes have remained high with the rise in the Nifty indicating that the up move may remain intact. The MACD is just about to give a positive divergence, but that signal has not emerged as yet. The ADX is suggesting a favor towards the Bulls now. The Parabolic SAR has just turned into a Buy signal with the initial SL pegged at 5487.5) Considering the above, our trading plan for the day is as under. a) Around 5755 we will open fresh short positions with a SL of 5775 and a target of 5685. We will add to these short positions only below 5665.b) Above 5690 we will open fresh long positions with a SL of 5665 and a target of 5750. We will add to these long positions only above 5775.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Bulls have regained their footing, but the future of the up move depends on 5690.
As discussed in our last post, the Bulls had regained their footing, and they ensured that the Nifty remained buoyant and gave a positive close in-spite of a holiday in front. The Nifty opened with a 16 points positive gap up and then traded in a narrow range. The low of 5690 made in the first hour of trade was well defended by the Bulls for the entire trading session, which resulted in the Nifty rising above the day's high established earlier to make a new weekly high of 5755 before closing at 5742 with a gain of 43 points. We booked a loss of 23 points in a trade taken on the short side.
Summary : Although the Bulls have regained some control, they have much to do to retain that position. The Bears are not out of the picture as yet and a breach of 5690 would trigger a major breakdown.
1) The Elder Ray readings : Bull Power rises from +5 to +49 Bear Power reduces from -121 to -16 indicating that the Bulls have gained and the Bears have lost grounds on Wednesday. However, they are both in their safe zones, making the Nifty neutral as of now. For today, the Bulls need to overcome the levels of 5765 to maintain their upwards momentum whereas the Bears need to breach the levels of 5690 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing upwards.
3) The Nifty has closed above its 8EMA and 13EMA. However, it has closed below its 21EMA and also below all its key DMAs. Moreover, the EMAs are stacked in the favor of the Bears.
Bulls recover their lost grounds. Nifty faces road blocks ahead. Today's close critical.As discussed yesterday, the Nifty was still consolidating after the major fall of about 600 points in the last 11 trading sessions. The Nifty opened with a 12 point negative gap down at 5600 and then traded bearish for the initial hour making a low of 5579. But after that, slow and steady buying pressure saw the Nifty not only take out the day's highs but also make a new high for the week at 5705 before closing at 5699. We took a trade on the short side and lost 20 points in that trade.1) The Elder Ray readings : Bull Power rises from -56 to +5 Bear Power reduces from -143 to -121 indicating that though the Bulls have recovered all their lost grounds, they have their work cut out yet as the Bears are sitting pretty tight in their safe zone. For today, the Bulls need to overcome the levels of 5710 to maintain their upwards momentum whereas the Bears need to breach the levels of 5575 to maintain their downwards momentum.2) The stochastics are looking upwards to break out of the oversold zone.3) The Nifty has closed above its 8EMA but has closed below its other key EMAs and also below all its key DMAs. 4) In the above chart, the volumes have remained high with the rise in the Nifty indicating that the up move may continue. The MACD is still in the negative but is attempting to rise. The Histogram also in the negative is attempting to rise. The ADX is showing almost equilibrium between the Bulls and the Bears while pointing towards reduced overall momentum. The Parabolic SAR continues with its sell signal with a SL at 5705.5) Considering the above, our trading plan for the day is as under.a) Below 5710 we will open fresh short positions with a SL of 5735 and a target of 5650. We will add to these short positions only below 5620.b) Around 5635 we will open fresh long positions with a SL of 5615 and a target of 5685. We will add to these long positions only above 5735.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Bulls recover their lost grounds. Nifty faces road blocks ahead. Today's close critical.
As discussed yesterday, the Nifty was still consolidating after the major fall of about 600 points in the last 11 trading sessions. The Nifty opened with a 12 point negative gap down at 5600 and then traded bearish for the initial hour making a low of 5579. But after that, slow and steady buying pressure saw the Nifty not only take out the day's highs but also make a new high for the week at 5705 before closing at 5699. We took a trade on the short side and lost 20 points in that trade.
1) The Elder Ray readings : Bull Power rises from -56 to +5 Bear Power reduces from -143 to -121 indicating that though the Bulls have recovered all their lost grounds, they have their work cut out yet as the Bears are sitting pretty tight in their safe zone. For today, the Bulls need to overcome the levels of 5710 to maintain their upwards momentum whereas the Bears need to breach the levels of 5575 to maintain their downwards momentum.
2) The stochastics are looking upwards to break out of the oversold zone.
3) The Nifty has closed above its 8EMA but has closed below its other key EMAs and also below all its key DMAs.
Nifty in a short term consolidation mode as Bears take a breather. Sell on rise still on.As discussed yesterday, the Bearish consolidation on the Nifty continued. The Nifty opened with a positive gap of 41 points at 5607 and then in the first couple of hours of trading filled the gap making a day low of 5557 from where some buying came in and the Nifty crossed the day's high to make a new day high of 5644 (just above our sell levels indicated) before getting sold off and closing at 5612 with a gain of 47 points. We took a trade on the short side and could book a profit of 15 points in that trade.Summary : Nifty is in a consolidation mode with the trading range expanding. On such occasions, the big rewarding trades will come after a patient wait. 1) The Elder Ray readings : Bull Power rises from -137 to -56 Bear Power reduces from -204 to -143 indicating that the Bears have let lose their control and that the Bulls are clawing back. For today, the Bulls need to overcome the levels of 5685 to regain their lost grounds whereas the Bears need to breach the levels of 5540 to maintain their downwards momentum.2) The stochastics are still in the oversold zone but are attempting 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 remained high with the rise in the Nifty indicating that the rise may continue as of now. The MACD continues to point downwards, with the histogram remaining in the negative but reducing. The ADX is also suggesting a rise in the upwards momentum and a fall in the downwards momentum. The Parabolic SAR continues to give out its sell call with the SL now shifted down to 5721.5) Considering the above, our trading plan for the day is as under.a) Around 5670 we will open fresh short positions with a SL of 5690 and a target of 5560. We will add to these short positions only below 5535.b) Around 5550 we will open fresh long positions with a SL of 5535 and a target of 5630. We will add to these long positions only above 5690.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty in a short term consolidation mode as Bears take a breather. Sell on rise still on.
As discussed yesterday, the Bearish consolidation on the Nifty continued. The Nifty opened with a positive gap of 41 points at 5607 and then in the first couple of hours of trading filled the gap making a day low of 5557 from where some buying came in and the Nifty crossed the day's high to make a new day high of 5644 (just above our sell levels indicated) before getting sold off and closing at 5612 with a gain of 47 points. We took a trade on the short side and could book a profit of 15 points in that trade.
Summary : Nifty is in a consolidation mode with the trading range expanding. On such occasions, the big rewarding trades will come after a patient wait.
1) The Elder Ray readings : Bull Power rises from -137 to -56 Bear Power reduces from -204 to -143 indicating that the Bears have let lose their control and that the Bulls are clawing back. For today, the Bulls need to overcome the levels of 5685 to regain their lost grounds whereas the Bears need to breach the levels of 5540 to maintain their downwards momentum.
2) The stochastics are still in the oversold zone but are attempting to look up.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
In yet another truncated week, Nifty may consolidate with a Bearish undertone.In our last post, we had suggested to "Carry on shorting". The Nifty has since then lost about 120 points on a closing basis, and now seems to have entered a consolidation phase where it will wait for the averages to catch up before plunging down again. We have been on a trading holiday for the past couple of sessions. The Nifty has since then been trading around 5550 making a low of 5510.
Summary : The Nifty is in a consolidation mode and the bearish sentiment prevails. We have initiated a medium term short call on the Nifty which can be viewed here. 1) The Elder Ray readings : Bull Power rises from -178 to -137 Bear Power reduces from -252 to -204 indicating that the Bears have paused for recouping and the Bulls are far away from their safe zone yet. For today the Bulls need to overcome the levels of 5690 to regain their lost grounds whereas the Bears need to breach the levels of 5485 to maintain their downwards momentum.2) The stochastics continue to remain in the oversold zone.3) The Nifty continues to close well below all its key EMAs and also well below all its key DMAs. 4) In the above chart, the volumes have remained high with the rise in the Nifty indicating that the rise may continue. The MACD continues to fall with the histogram remaining in the negative. The ADX is suggesting a small loss of momentum for the bears and a small rise in momentum for the bulls. The Parabolic SAR continues with its sell signal with the SL now brought down to 5766.5) Considering the above, our trading plan for the day is as under.a) Around 5615 we will open fresh short positions with a SL of 5640 and a target of 5535. We will add to these short positions only below 5490.b) Around 5515 we will open fresh long positions with a SL of 5490 and a target of 5575. We will add to these long positions only above 5535.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
In yet another truncated week, Nifty may consolidate with a Bearish undertone.
In our last post, we had suggested to "Carry on shorting". The Nifty has since then lost about 120 points on a closing basis, and now seems to have entered a consolidation phase where it will wait for the averages to catch up before plunging down again. We have been on a trading holiday for the past couple of sessions. The Nifty has since then been trading around 5550 making a low of 5510.
Summary : The Nifty is in a consolidation mode and the bearish sentiment prevails. We have initiated a medium term short call on the Nifty which can be viewed here.
1) The Elder Ray readings : Bull Power rises from -178 to -137 Bear Power reduces from -252 to -204 indicating that the Bears have paused for recouping and the Bulls are far away from their safe zone yet. For today the Bulls need to overcome the levels of 5690 to regain their lost grounds whereas the Bears need to breach the levels of 5485 to maintain their downwards momentum.
2) The stochastics continue to remain in the oversold zone.
3) The Nifty continues to close well below all its key EMAs and also well below all its key DMAs.
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