Nifty gaps up and sustains. Follow up buying lacking. Dull session may be ahead.Till yesterday, the Nifty was maintaining a volatile equilibrium. That equilibrium was shattered by yesterday's opening which was with a whopping positive gap of 106 points. The Nifty rushed higher immediately after opening and crossed the levels of 5600 to make a quick high of 5626 in the first few minutes of trade. But lack of follow up buying saw the Nifty trade within a confine range of 70 80 points post that for the entire trading session. The Nifty finally closed at 5593 with a gain of 145 points. We did not take any trade as the range was out of our bounds.1) The Elder Ray readings : Bull Power rises from +10 to +155 Bear Power reduces from -132 to +82 indicating that the Bears have now lost their footing and the Bulls are clearly in the driver's seat. For today, the Bulls need to overcome the levels of 5650 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5480 to regain their lost grounds.2) The fast stochastics are already in the overbought zone, but the slow stochastics are still in the neutral zone, indicating room for an up move.3) The Nifty has closed above all its key EMAs but has closed below all its key DMAs. 4) In the above chart the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is pointing upwards from the negative, the histogram is growing in the positive. The ADX is also suggesting a rise in the upwards momentum. The Parabolic SAR continues with its buy signal with the SL now shifted up to 5165.5) Considering the above, our trading plan for the day is as under.a) Around 5550 we will open fresh long positions with a SL of 5530 and a target of 5610. We will add to these long positions only above 5650.b) Around 5635 we will open fresh short positions with a SL of 5650 and a target of 5560. We will add to these short positions only below 5530.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty gaps up and sustains. Follow up buying lacking. Dull session may be ahead.
Till yesterday, the Nifty was maintaining a volatile equilibrium. That equilibrium was shattered by yesterday's opening which was with a whopping positive gap of 106 points. The Nifty rushed higher immediately after opening and crossed the levels of 5600 to make a quick high of 5626 in the first few minutes of trade. But lack of follow up buying saw the Nifty trade within a confine range of 70 80 points post that for the entire trading session. The Nifty finally closed at 5593 with a gain of 145 points. We did not take any trade as the range was out of our bounds.
1) The Elder Ray readings : Bull Power rises from +10 to +155 Bear Power reduces from -132 to +82 indicating that the Bears have now lost their footing and the Bulls are clearly in the driver's seat. For today, the Bulls need to overcome the levels of 5650 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5480 to regain their lost grounds.
2) The fast stochastics are already in the overbought zone, but the slow stochastics are still in the neutral zone, indicating room for an up move.
3) The Nifty has closed above all its key EMAs but has closed below all its key DMAs.
Nifty volatility rises as Bulls and Bears fight over the equality. Whipsaws ahead.As discussed in yesterday's post "Equilibrium tilts Bearish", we had suggested that despite the big downmove, the equilibrium was maintained as Bulls and Bears both were equidistant in their respective safe zones. The Nifty opened with a positive gap of 17 points at 5359 went down in a swift move to 5319 and then quickly got back above 5375 and above 5400. Thereafter, the Nifty traded with extreme volatility and every hour had a 50 point move between the hourly lows and highs. The Nifty closed with a gain of 107 points at 5448 after making a intraday high of 5460. We took a trade on the short side and booked out with a quick profit of 25 points.1) The Elder Ray readings : Bull Power reduces from +130 to +10 Bear Power rises from -127 to -131 indicating that the Bears are still in control, but the Bulls cannot be ignored as of now. For today, the Bulls need to overcome the levels of 5465 to maintain their upwards momentum whereas the Bears need to breach the levels of 5315 to maintain their downwards momentum.2) The stochastics are right in the center and are pointing horizontal.3) The Nifty has closed above its 8EMA but has closed below its 13EMA and 21EMA and also below all its key DMAs. 4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the rise may continue. The MACD continues to point towards a up move with the histogram also rising. The ADX on the other hand, is indicating a loss of momentum for the bears as well as the bulls. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 5146.5) Considering the above, our trading plan for the day is as under.a) Around 5545 we will open fresh short positions with a SL of 5565 and a target of 5400. We will add to these short positions only below 5360.b) Around 5380 we will open fresh long positions with a SL of 5360 and a target of 5530. We will add to these long positions only above 5565.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty volatility rises as Bulls and Bears fight over the equality. Whipsaws ahead.
As discussed in yesterday's post "Equilibrium tilts Bearish", we had suggested that despite the big downmove, the equilibrium was maintained as Bulls and Bears both were equidistant in their respective safe zones. The Nifty opened with a positive gap of 17 points at 5359 went down in a swift move to 5319 and then quickly got back above 5375 and above 5400. Thereafter, the Nifty traded with extreme volatility and every hour had a 50 point move between the hourly lows and highs. The Nifty closed with a gain of 107 points at 5448 after making a intraday high of 5460. We took a trade on the short side and booked out with a quick profit of 25 points.
1) The Elder Ray readings : Bull Power reduces from +130 to +10 Bear Power rises from -127 to -131 indicating that the Bears are still in control, but the Bulls cannot be ignored as of now. For today, the Bulls need to overcome the levels of 5465 to maintain their upwards momentum whereas the Bears need to breach the levels of 5315 to maintain their downwards momentum.
2) The stochastics are right in the center and are pointing horizontal.
3) The Nifty has closed above its 8EMA but has closed below its 13EMA and 21EMA and also below all its key DMAs.
Bears come back with a bang & tilt equilibrium in their favor. However, equality stays.As discussed yesterday, a Bullish equilibrium had reached on the Nifty and Nifty was facing roadblocks ahead. The Nifty opened with a positive gap up of 24 points at 5575 and after making a quick high of 5581 retreated initially and then accelerated its down move. There was relentless selling from the Bears and the Nifty kept on making new lows every hour never even threatening the hourly highs. The Nifty finally closed at 5341 after making a low of 5324. We took one trade on the short side and booked out with a profit of 55 points.1) The Elder Ray readings : Bull Power rises from +96 to +130 Bear Power also rises from +10 to -127 indicating that the Bears have regained their lost grounds quickly, however, both the Bulls and the Bears are equidistant in their respective zones. For today, the Bulls need to overcome the levels of 5585 to maintain their upwards momentum whereas the Bears need to breach the levels of 5300 to maintain their downwards momentum.2) The stochastics are still in the neutral zone, but are pointing downwards.3) The Nifty has 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 down move may continue. The MACD is again pointing downwards and attempting a short signal with the histogram also reducing in the positive zone. The ADX is also showing a fall in the bullish momentum and a rise in the bearish momentum. The Parabolic SAR continues with its buy signal with the SL now shifted up to 5128.5) Considering the above, our trading plan for the day is as under.a) Around 5390 we will open fresh short positions with a SL of 5415 and a target of 5295. We will add to these short positions only below 5270.b) Around 5290 we will open fresh long positions with a SL of 5270 and a target of 5370. We will add to these long positions only above 5415.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Bears come back with a bang & tilt equilibrium in their favor. However, equality stays.
As discussed yesterday, a Bullish equilibrium had reached on the Nifty and Nifty was facing roadblocks ahead. The Nifty opened with a positive gap up of 24 points at 5575 and after making a quick high of 5581 retreated initially and then accelerated its down move. There was relentless selling from the Bears and the Nifty kept on making new lows every hour never even threatening the hourly highs. The Nifty finally closed at 5341 after making a low of 5324. We took one trade on the short side and booked out with a profit of 55 points.
1) The Elder Ray readings : Bull Power rises from +96 to +130 Bear Power also rises from +10 to -127 indicating that the Bears have regained their lost grounds quickly, however, both the Bulls and the Bears are equidistant in their respective zones. For today, the Bulls need to overcome the levels of 5585 to maintain their upwards momentum whereas the Bears need to breach the levels of 5300 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone, but are pointing downwards.
3) The Nifty has closed below all its key EMAs and also below all its key DMAs.
Nifty closes above 5500 to enter a state of bullish equilibrium. Roadblocks ahead.As discussed yesterday, the "Bulls needed to maintain their tempo", and they did it with ease with the Nifty giving a higher low in every hour of trade yesterday. The Nifty opened positive at 5480 and maintained that level throughout the session. The Nifty made a high of 5565 late in the afternoon, before closing at 5551 with a gain of 79 points. We took a trade on the short side and booked a loss of 30 points.1) The Elder Ray readings : Bull Power rises from +38 to +96 Bear Power reduces from -95 to +10 indicating that now the Bears have lost their grounds and that the Bulls are in the driving seat. For today, the Bulls need to overcome the levels of 5585 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5480 to regain their lost grounds.2) The stochastics are yet in the neutral zone and are pointing upwards.3) The Nifty has now closed above all its key EMAs but has closed below all its key DMAs. 4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may falter going ahead. The MACD has given a reversal signal from the negative with the histogram also growing in the positive. The ADX is suggesting a favor towards the Bulls but is suggesting lowering of the overall momentum. The Parabolic SAR has turned into a buy signal with a initial SL of 5119.5) Considering the above, our trading plan for the day is as under.a) Around 5500 we will open fresh long positions with a SL of 5480 and a target of 5570. We will add to these long positions only above 5600.b) Around 5585 we will open fresh short positions with a SL of 5600 and a target of 5510. We will add to these short positions only below 5480.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty closes above 5500 to enter a state of bullish equilibrium. Roadblocks ahead.
As discussed yesterday, the "Bulls needed to maintain their tempo", and they did it with ease with the Nifty giving a higher low in every hour of trade yesterday. The Nifty opened positive at 5480 and maintained that level throughout the session. The Nifty made a high of 5565 late in the afternoon, before closing at 5551 with a gain of 79 points. We took a trade on the short side and booked a loss of 30 points.
1) The Elder Ray readings : Bull Power rises from +38 to +96 Bear Power reduces from -95 to +10 indicating that now the Bears have lost their grounds and that the Bulls are in the driving seat. For today, the Bulls need to overcome the levels of 5585 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5480 to regain their lost grounds.
2) The stochastics are yet in the neutral zone and are pointing upwards.
3) The Nifty has now closed above all its key EMAs but has closed below all its key DMAs.
Bulls need to defend 5300, take out 5500 to maintain momentum. Sell on rise till then.As discussed on Friday, we expected the "Bears to play their hand". The bearish move happened when the Nifty in the afternoon session, sold off from the levels of 5470 to 5360 losing 110 points in a matter of an hour. However, that was not the end of story, as the Bulls then took over and swept the Nifty past 5470 yet again in the last hour of trade to make a high of 5493 before closing at 5472. Earlier, the Nifty had opened flat at 5407. We took one trade on the short side and booked out with a loss of 21 points as our SL got hit.1) The Elder Ray readings : Bull Power rises from -24 to +38 Bear Power reduces from -150 to -95 indicating that the Bulls have regained their territory, but the Bears are not to be counted out as yet. For today, the Bulls need to overcome the levels of 5500 to maintain their upwards momentum whereas the Bears need to breach the levels of 5360 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(5417) and its 13EMA(5456) but has closed below its 21EMA and also below all its key DMAs. 4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is again attempting a breakout signal, with the histogram too turning just above the zero line. The ADX is also showing a small favor to the Bulls. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5493.5) Considering the above, our trading plan for the day is as under.a) Around 5380, we will open fresh long positions with a SL of 5355 and a target of 5500. We will add to these long positions only above 5545.b) Around 5525, we will open fresh short positions with a SL of 5545 and a target of 5400. We will add to these short positions only below 5355.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Bulls need to defend 5300, take out 5500 to maintain momentum. Sell on rise till then.
As discussed on Friday, we expected the "Bears to play their hand". The bearish move happened when the Nifty in the afternoon session, sold off from the levels of 5470 to 5360 losing 110 points in a matter of an hour. However, that was not the end of story, as the Bulls then took over and swept the Nifty past 5470 yet again in the last hour of trade to make a high of 5493 before closing at 5472. Earlier, the Nifty had opened flat at 5407. We took one trade on the short side and booked out with a loss of 21 points as our SL got hit.
1) The Elder Ray readings : Bull Power rises from -24 to +38 Bear Power reduces from -150 to -95 indicating that the Bulls have regained their territory, but the Bears are not to be counted out as yet. For today, the Bulls need to overcome the levels of 5500 to maintain their upwards momentum whereas the Bears need to breach the levels of 5360 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(5417) and its 13EMA(5456) but has closed below its 21EMA and also below all its key DMAs.
|
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.
