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.
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.