Nifty - 22 Nov 2013 - Red weekend on the cards

With a bearish assertion coming to the fore, Nifty expected to end week in the red.

As discussed yesterday, we had said "Bearish assertion needs confirmation". The Bears confirmed their assertion and how. The Nifty opened with a negative gap down of 26 points at 6097 and that was its high for the entire trading session. The Bears not only breached the supports of 6060, but pushed the Nifty below the levels of 6000, made a low of 5985 before closing the day at 5999 with a loss of 124 points. We took a trade in the short direction and could book a profit of 60 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +65 to -22 Bear Power rises from -32 to -134 indicating that the Bears seem to have taken away the game from the Bulls. For today, the Bulls need to overcome the levels of 6100 to regain their lost grounds whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.

2) The fast stochastics are in the oversold zone with the slow stochastics lagging way behind indicating some more room for a further downside.

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

Nifty - 21 Nov 2013 - Bearish assertion needs confirmation

Nifty forms yet another evening star. A bearish assertion can take down Nifty swiftly.

In our yesterday's post "Markets poised at a crucial juncture", we had suggested the importance of EOD close. We had also suggested that both sides have equal stake at present. And that is how the day unfolded. The Nifty opened with a negative gap down of 17 points at 6187 and barely filled that gap. The Nifty traded within a range of 25 to 30 points for most of the trading session, but kept of testing the lows without really threatening the highs. In the last hour of trade, the Nifty then plunged to its low of 6107 before closing at 6123 with a loss of 80 points. We did not take any trade yesterday because of hazy technicals waiting to resolve themselves.

1) The Elder Ray readings : Bull Power reduces from +71 to +65  Bear Power rises from +38 to -32 indicating that despite the plunge, the Bears need to keep up their tempo as the Bulls cannot be ruled out as yet. For today, the Bulls need to overcome the levels of 6205 to maintain their upwards momentum whereas the Bears need to breach the levels of 6100 to maintain their downwards momentum.

2) The stochastics are in the neutral zone and are pointing across each other.

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

Nifty - 20 Nov 2013 - Markets poised at a critical juncture

Nifty pauses at a critical juncture with both sides having a stake. Crucial EOD today.

As discussed yesterday, "Bulls needed to follow up", however, their follow up lacked the strength and the depth. Having said that, the Bulls also successfully defended the Nifty from the intermittent Bear attacks during the day. As such it turned out to be a NR7 day and a big move on either side can be expected today or tomorrow. We did not participate in the trade yesterday, as the Nifty gyrated in a narrow range of 32 points between 6180 on the lower side and 6212 on the higher side.

1) The Elder Ray readings : Bull Power rises from +65 to +71 Bear Power reduces from -21 to +38 indicating that the Bears have just lost their footing and unless they are active quickly, they will lose this one. For today, the Bulls need to overcome the levels of 6225 to maintain their upwards momentum whereas the Bears need to breach the levels of 6150 to regain their lost grounds.

2) The stochastics are right in the middle of the neutral zone and are pointing upwards.

3) The Nifty has closed above all its key EMAs and also above all its key DMAs.

Nifty - 19 Nov 2013 - Bulls need to follow up

After 2 days of rise, Bulls must show some follow up buying. Gaps need to sustain.

As discussed yesterday, we got a Bullish start to a fresh week. Riding on positive global cues and after a long weekend, the Nifty opened with a positive gap up of 55 points at 6111 and immediately crossed 6150. The Nifty then traded in a narrow range of 6165 and 6140 for most of the trading session. However, in the last hour of trade, the Nifty raged up to 6197 before closing at 6189 with a gain of 133 points. As intraday traders, we did not get any opportunity to Buy the Nifty in the morning hour and there was no trade available on the short side either. So, we watched the Nifty and sat outside on the fence.

1) The Elder Ray readings : Bull Power rises from -20 to +65 Bear Power reduces from -85 to -21 indicating that both the Bulls and the Bears are now in their respective zones and some fireworks can be expected. For today, the Bulls need to overcome the levels of 6210 to maintain their upwards momentum whereas the Bears need to breach the levels of 6140 to maintain their downwards momentum. 

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

3) The Nifty has closed above all its key EMAs and also above all its key DMAs.

Nifty - 18 Nov 2013 - Bullish start of a fresh week

Owing to global cues, the Nifty to start on a Bullish note after a long weekend.

In our last post, which now seems to be long ago, owing to this long weekend, we had said that "Bears tighten the noose". However, the Nifty opened at 6037 with a whopping 47 points positive up gap and then never really broke that opening mark. The Nifty then ventured near the two days high of 6109, but did not cross it. The Nifty made a high of 6102 before closing at 6056 with a gain of 67 points. We had to alter our trading plan on the trot and took a trade in the short direction, which yielded us a profit of 35 points.

1) The Elder Ray readings : Bull Power rises from -91 to -20 Bear Power reduces from -160 to -85 indicating that the Bulls are on the verge of making a comeback, however the Bears cannot be written off as yet. For today, the Bulls need to overcome the levels of 6115 to regain their lost grounds whereas the Bears need to breach the levels of 6025 to maintain their downwards momentum.

2) The stochastics are in the oversold zone and are pointing upwards.

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