Nifty exhibits distributive patterns and looks getting ready for a downfall.As discussed yesterday, the Nifty remained range bound for the entire trading session. The Nifty opened on a positive note with a gap up of 9 points and traded within a range but bearishly. The Nifty made a high of 6111 and a low of 6033 before closing at 6046 with a loss of 43 points. None of our trading plans was triggered and we did not enter the trading arena yesterday.1) The Elder Ray readings : Bull Power reduces from +179 to +124 Bear Power rises from +79 to +45 indicating that the Bears are slowly recovering although the control still lies with the Bulls. For today, the Bulls need to overcome the levels of 6125 to maintain their upwards momentum whereas the Bears need to breach the levels of 5995 to regain their lost grounds.2) The stochastics are in the overbought zone and are now pointing downwards.3) The Nifty took support at its 8EMA(6027) and closed above all its key EMAs as well as above all its key DMAs too. 4) In the above chart the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to point horizontal with the histogram remaining positive but reducing. The ADX is suggesting a loss of momentum for the Bulls and gain of Bearish momentum. The Parabolic SAR continues with is buy signal with the SL now raised to 5818.5) Considering the above, our trading plan for the day is as under.a) Around 6090 we will open fresh short positions with a SL of 6115 and a target of 5990. We will add to these short positions only below 5975.b) Around 5990 we will open fresh long positions with a SL of 5975 and a target of 6070. We will add to these long positions only above 6115.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty exhibits distributive patterns and looks getting ready for a downfall.
As discussed yesterday, the Nifty remained range bound for the entire trading session. The Nifty opened on a positive note with a gap up of 9 points and traded within a range but bearishly. The Nifty made a high of 6111 and a low of 6033 before closing at 6046 with a loss of 43 points. None of our trading plans was triggered and we did not enter the trading arena yesterday.
1) The Elder Ray readings : Bull Power reduces from +179 to +124 Bear Power rises from +79 to +45 indicating that the Bears are slowly recovering although the control still lies with the Bulls. For today, the Bulls need to overcome the levels of 6125 to maintain their upwards momentum whereas the Bears need to breach the levels of 5995 to regain their lost grounds.
2) The stochastics are in the overbought zone and are now pointing downwards.
3) The Nifty took support at its 8EMA(6027) and closed above all its key EMAs as well as above all its key DMAs too.
Post a couple of volatile sessions, the Nifty is expected to be range-bound.As discussed on Monday, the Nifty remained volatile for the next couple of trading sessions in a 100 point range between 6156 and 6056. On Tuesday, the Nifty closed with a loss of 24 points at 6089, which is almost the mid point of the above range. We took a trading holiday on Tuesday.1) The Elder Ray readings : Bull Power rises from +165 to +179 Bear Power also rises from +124 to +79 indicating that the Nifty is undergoing a major tussle between the Bulls and the Bears. For today, the Bulls need to overcome the levels of 6175 to maintain their upwards momentum whereas the Bears need to breach the levels of 5985 to regain their lost grounds.2) The stochastics are in the overbought zone and have just given a negative signal.3) The Nifty continues to close above all its key EMAs and also above 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 continues to point horizontal with a positive bias as the histogram continues to remain positive. The ADX is suggesting a flattening of the Bullish momentum but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 5780.5) Considering the above, our trading plan for the day is as under.a) Around 6130 we will open fresh short positions with a SL of 6160 and a target of 6035. We will add to these short positions only below 6015.b) Around 6030 we will open fresh long positions with a SL of 6015 and a target of 6115. We will add to these long positions only above 6160.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Post a couple of volatile sessions, the Nifty is expected to be range-bound.
As discussed on Monday, the Nifty remained volatile for the next couple of trading sessions in a 100 point range between 6156 and 6056. On Tuesday, the Nifty closed with a loss of 24 points at 6089, which is almost the mid point of the above range. We took a trading holiday on Tuesday.
1) The Elder Ray readings : Bull Power rises from +165 to +179 Bear Power also rises from +124 to +79 indicating that the Nifty is undergoing a major tussle between the Bulls and the Bears. For today, the Bulls need to overcome the levels of 6175 to maintain their upwards momentum whereas the Bears need to breach the levels of 5985 to regain their lost grounds.
2) The stochastics are in the overbought zone and have just given a negative signal.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Nifty forms a hanging man in the supply zone. Expect a volatile session today.As discussed on Friday, we expected the global rally to power the Nifty, and that is exactly what happened. The Nifty opened with a hefty positive gap up of 84 points at 6105 and traded bullish for the entire trading session. The first hour low of 6046 was quickly bought into and the Nifty regained its highs late in the evening making a high of 6108 before closing at 6096 with a gain of 75 points. We took a trade on the short side and booked out with a minor loss of 10 points.1) The Elder Ray readings : Bull Power rises from +128 to +174 Bear Power reduces from +74 to +113 indicating that the Bulls are in full control and that the Bears have their work cut out. For today, the Bulls need to overcome the levels of 6135 to maintain their upwards momentum whereas the Bears need to breach the levels of 5955 to regain their lost grounds.2) The stochastics are now in the overbought zone and are still pointing upwards.3) The Nifty continues to close above all its key EMAs and also above 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. However, the Nifty has formed a hanging man which will keep the Bears in the reckoning. The MACD has given a positive signal with the histogram also rising above the zero line. The ADX is also signalling a rise in the Bullish momentum. The ADX is also giving out its buy signal with the SL now raised to 5724.5) Considering the above, our trading plan for the day is as under.a) Around 6045 we will open fresh long positions with a SL of 6020 and a target of 6130. We will add to these long positions only above 6175.b) Around 6155 we will open fresh short positions with a SL of 6175 and a target of 6055. We will add to these short positions only below 6020.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty forms a hanging man in the supply zone. Expect a volatile session today.
As discussed on Friday, we expected the global rally to power the Nifty, and that is exactly what happened. The Nifty opened with a hefty positive gap up of 84 points at 6105 and traded bullish for the entire trading session. The first hour low of 6046 was quickly bought into and the Nifty regained its highs late in the evening making a high of 6108 before closing at 6096 with a gain of 75 points. We took a trade on the short side and booked out with a minor loss of 10 points.
1) The Elder Ray readings : Bull Power rises from +128 to +174 Bear Power reduces from +74 to +113 indicating that the Bulls are in full control and that the Bears have their work cut out. For today, the Bulls need to overcome the levels of 6135 to maintain their upwards momentum whereas the Bears need to breach the levels of 5955 to regain their lost grounds.
2) The stochastics are now in the overbought zone and are still pointing upwards.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
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