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Thursday 14 November 2013

Nifty - 14 Nov 2013 - Bears tighten the noose

Nifty gets bearish pounding for 8 straight sessions. Sell on Rise, and then Sell at will.

In our yesterday's post, we were expecting some green on the screen as Nifty was nearing intermediate supports. The Nifty opened with a 19 point negative gap down at 5999 and immediately ventured into the green making a intermediate high of 6032 during the initial hours of trade. The Nifty then hovered in a 25 point range between 6030 and 6005 for the next two hours of trade. We immediately saw a trading opportunity then, and posted a comment that the Nifty was moving in a expanding triangle and the next higher top would present a handsome shorting opportunity. As such, the Nifty made a higher high at 6042 and then slipped off to not only break the day's opening mark and the intraday low, but to make a new low at 5972 before closing at 5990. We took a short trade at 5940 and booked out at EOD with a profit of 55 points on that trade.

1) The Elder Ray readings : Bull Power reduces from -48 to -91 Bear Power rises from -145 to -160 indicating that the Bears are tightening their vice like grip on the Nifty, and that the Bulls have made their own task that much harder. For today, the Bulls need to overcome the levels of 6105 to regain their lost grounds whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.

2) The stochastics are well and deep into the oversold zone.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.

Wednesday 13 November 2013

Nifty - 13 Nov 2013 - Nearing intermediate supports

After 7 consecutive red candles, there may be some green on the screen expected.

In our yesterday's post we had said "Down move may accelerate", and the markets obliged us. The Nifty opened with a minor positive gap up of 8 points at 6087 and made a quick high of 6109 (which was the trigger of our trading plan a) and then came the sell off and the Nifty accelerated its downfall in the last hour of trade. The Nifty made a low of 6012 before closing at 6018 with a loss of 61 points. Our trade taken in the short direction, yielded us a profit of 71 points as our trading plan(a) hit its target of 6035.

1) The Elder Ray readings : Bull Power reduces from -38 to -48 Bear Power rises from -112 to -145 indicating that the Bears are now firmly in the driver's seat. For today, the Bulls need to overcome the levels of 6130 to regain their lost grounds whereas the Bears need to breach the levels of 5985 to maintain their downwards momentum.

2) The stochastics are deep into the oversold zone now.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.

Tuesday 12 November 2013

Nifty - 12 Nov 2013 - Downmove may accelerate

After 6 consecutive down days, Nifty may look to consolidate. Sell on Rise continues.
As discussed yesterday, we saw the Nifty get a Weekly start on a weak note. The Nifty opened with a 30 point gap down at 6110 and then traded bearishly for most of the trading session. One rise on the Nifty by the Bulls, saw the Nifty close the gap and make a high of 6142, but that one got fizzled out by the end of the day, with the Nifty making a low of 6068 and closing at 6079 with a loss of 62 points. During this down move, the Bears have allowed the Bulls to touch the Nifty in the green on each trading day and then they have punished the Nifty and closed it near the day's lows.

1) The Elder Ray readings : Bull Power reduces from -11 to -38 Bear Power rises from -76 to -112 indicating that the Bears are now driving the Nifty and that the Bulls need to rise to the occasion soon, else be left out. For today, the Bulls need to overcome the levels of 6165 to regain their lost grounds whereas the Bears need to breach the levels of 6050 to maintain their downwards momentum.

2) The stochastics are pointing downwards but are fast approaching the oversold zone.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.

Monday 11 November 2013

Nifty - 11 Nov 2013 - Weekly start on a weak note.

Start of a fresh week, sees Nifty in a Sell on Rise mode. Look out for resistances.

As discussed on Friday, the Nifty continued its journey heading southwards. The Nifty opened with a negative gap down of 17 points and barely made that up when it made a day high of 6186 before dipping down again to make a low of 6121 after which the Nifty closed at 6141 with a loss of 47 points. Our trading plan for going long at near 6120 almost triggered but it was at the fag end of the trading session and we did not take that trade.

1) The Elder Ray readings : Bull Power reduces from +83 to -11 Bear Power rises from -25 to -76 indicating that the Bears are now in the driving seat and that the Bulls need to get into their safe zone as their first priority. For today, the Bulls need to overcome the levels of 6185 to regain their lost grounds, whereas the Bears need to breach the levels of 6105 to maintain their downwards momentum.

2) The stochastics are still in the neutral zone and are still pointing downwards.

3) The Nifty has closed below all its key EMAs but has closed above 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.