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Wednesday 18 December 2013

Nifty - 18 Dec 2013 - Testing critical supports

Seven consecutive days fall post registering a highest high, Nifty at critical supports.

As discussed yesterday, we were expecting "A relief rally may unfold" on the Nifty. Positive global cues and a 24 point gap up opening on the Nifty at 6178 initially supported our view. However, the Bulls could not sustain the Nifty at higher levels, and after making a higher high than previous day at 6191, the Nifty made a lower low than previous day at 6133, before closing at 6139 with a loss of 16 points. We took a trade on the long side and booked out at EOD with a small loss of 8 points.

1) The Elder Ray readings : Bull Power rises from -28 to -10 Bear Power also rises from -65 to -68 indicating that the Bears are still in control of the Nifty. For today, the Bulls need to overcome the levels of 6195 to regain their lost grounds whereas the Bears need to breach the levels of 6120 to maintain their downwards momentum.

2) The stochastics are now approaching the oversold zone.

3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.

Tuesday 17 December 2013

Nifty - 17 Dec 2013 - Relief rally may unfold

Nifty forms a NR7 day. Aided with positive global cues a relief rally may unfold.

As discussed yesterday, we saw "Bears winning the battle" on the bourses. The Nifty after a flat opening, traded within a small range of 37 points during the entire trading session. However, the Nifty continued to make a lower high at 6183 and a lower low at 6146 before closing at 6155 with a loss of 14 points. This lower high and lower low continues to keep the Bears in the reckoning.

1) The Elder Ray readings : Bull Power reduces from -12 to -28 Bear Power rises from -59 to -65 indicating that the Bears are in control of the Nifty as of now. For today, the Bulls need to overcome the levels of 6205 to regain their lost grounds 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 downwards.

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

Monday 16 December 2013

Nifty - 16 Dec 2013 - Bears winning the battle

Nifty breaches critical support levels. Uphill task for the Bulls now onwards.

As discussed on Friday, the Nifty was in no man's land, at the opening. However, the Nifty after opening gap down for the 4th successive trading session, kept on drifting down by the hour and never really looked like gaining any strength. Thus, the Bearish undertones got confirmed and now the Bulls have lost their footing and face a uphill task of recovery. We took a trade on the long side and lost 20 points on that trade as our SL got hit yet again.

1) The Elder Ray readings : Bull Power reduces from +58 to -12 Bear Power rises from +1 to -59 indicating that the Bears not only have regained their footing, they have also dislodged the Bulls. For today, the Bulls need to overcome the levels of 6210 to regain their lost grounds whereas the Bears need to breach the levels of 6145 to maintain their downwards momentum.

2) The stochastics are right in the center of the neutral zone and are pointing downwards.

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

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