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Friday 13 December 2013

Nifty - 13 Dec 2013 - Nifty in no man's land

Post a huge gap up, Nifty spends entire week filling it. Returns to where it all started.

As discussed yesterday, the "Consolidation Continued" on the Nifty, with the Nifty opening with a negative gap down of 31 points at 6277 making a quick high of 6287 and then trading in a narrow range of 30 points for almost the entire trading session. In the last hour of trade though the Nifty slipped below the intraday lows and made a low of 6231 before closing at 6237. We took a trade on the long side as per our trading plan, but lost 30 points on the trade as our SL of 6240 got hit.

1) The Elder Ray readings : Bull Power reduces from +99 to +58 Bear Power rises from +53 to +1 indicating that the Bears are now just about to regain their footing with even a minor gap down, and that this may be the break they are looking out for. Bulls need to pick up right away. For today, the Bulls need to overcome the levels of 6290 to maintain their upwards momentum whereas the Bears need to breach the levels of 6225 to regain their lost grounds.

2) The stochastics are out of the overbought zone and are pointing downwards.

3) The Nifty has closed below its 8EMA but has closed above its 13EMA and 21EMA. The Nifty has also closed above all its key DMAs.

Thursday 12 December 2013

Nifty - 12 Dec 2013 - Consolidation continues

Nifty consolidates for last two trading sessions. Decisive move may be coming soon.

As discussed yesterday, the "Drifting consolidation continued" on the Nifty. The Nifty opened with a 26 points negative gap down at 6307 and then traded within a narrow band of 25 points but stayed above 6260, for most of the trading session. The Nifty made a low of 6280. In the last 30 minutes of trade, the Nifty rose to shackle the day's highs and touched a intraday high of 6327, before closing at 6308. We took a trade on the long side and could book out at EOD with a profit of 30 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +148 to +99 Bear Power rises from +93 to +53 indicating that the Bulls are still well in control of the Nifty and the Bears have a much larger task cut out for them. For today, the Bulls need to overcome the levels of 6340 to maintain their upwards momentum whereas the Bears need to breach the levels of 6245 to regain their lost grounds.

2) The stochastics are still in the overbought zone.

3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

Wednesday 11 December 2013

Nifty - 11 Dec 2013 - Drifting consolidation is on

Nifty continues to consolidate as it drifts downwards, maintains Bullish stance yet.

In our yesterday's post, we had expected "Nifty to stay Bullish". The Nifty however, could not sustain the opening highs and traded in the red for the entire trading session. Having said that, the Nifty also took good support around our identified buying zone and closed maintaining its Bullish stance as of now. The Nifty traded in a range of 56 points losing 31 points from its previous close and without threatening the previous day's range at all, which augurs for caution for short term bulls. We took a trade on the long side and could scrape out with a meager profit of just 8 points by EOD.

1) The Elder Ray readings : Bull Power reduces from +221 to +148 Bear Power rises from +150 to +93 indicating that the Bears have a lot to do to come back in the reckoning as yet. For today, the Bulls need to overcome the levels of 6385 to maintain their upwards momentum whereas the Bears need to breach the levels of 6235 to regain their downwards momentum. 

2) The stochastics continue to remain in the overbought zone.

3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

Tuesday 10 December 2013

Nifty - 10 Dec 2013 - Nifty to stay Bullish

Nifty leaps big, consolidates, gives highest ever close maintaining Bullish technicals. 

As discussed yesterday, Nifty being "Ready for a decisive leap" opened with a bang at 6415. This was at a all time high. However, the Nifty could not sustain these high levels and then started to drift down and lost about 80 points from there when it hit the intraday low of 6345, even that was higher than the earlier highs for the year. Thus the Nifty closed at the highest ever closing point at 6364 and maintained the technicals in the Bullish fervor. There was nothing in the Nifty for intraday traders like us, and we enjoyed sitting out for the day.

1) The Elder Ray readings : Bull Power rises from +109 to +221 Bear Power reduces from +64 to +150 indicating that the Bulls have gone too far too fast but the Bears have got decimated. For today, the Bulls need to overcome the levels of 6445 to maintain their upwards momentum whereas the Bears need to breach the levels of 6225 to regain their lost grounds.

2) The stochastics are 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.

Monday 9 December 2013

Nifty - 09 Dec 2013 - Ready for a decisive leap

Nifty having shed weak bulls & maintains bullishness, gets ready for a decisive leap.

As discussed on Friday, the Nifty shed weak bulls, on Thursday, and on Friday, despite the gap down opening amidst weakening global cues, the Nifty maintained its Bullish poise and closed with a 19 point gain at 6260. During the day, the Nifty tested the supports of 6225 making a intraday low of 6231. The Nifty, in the last hour of trade, made a high of 6275. We took a trade on the long side and could book out with a profit of 35 points by EOD.

1) The Elder Ray readings : Bull Power reduces from +150 to +109 Bear Power rises from +81 to +64 indicating that the Bulls have given up some grounds but the Bears have not been able to capitalize on it. For today, the Bulls need to overcome the levels of 6295 to maintain their upwards momentum whereas the Bears need to breach the levels of 6180 to regain their lost grounds.

2) The stochastics are in the overbought zone and are now emphasizing the bullish straits.

3) The Nifty continues to close above all its key EMAs and also 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.