After a 185 point fall in two days on the trot, Nifty is in consolidation phase.
On Friday, the Nifty opened weak with a gap down of 27 points at 6195, made a quick high of 6209 and then traded bearishly, making a low of 6179 initially and then another low of 6171, where the Nifty found some buying and the Nifty, in the last two hours of trade, tried to recover some of the losses. The Nifty crossed the intraday high of 6209 and registered a new intraday high of 6222, before closing at 6211 with a nett loss of 10 points.
1) The Elder Ray readings : Bull Power reduces from +99 to -31 Bear Power rises from -48 to -81 indicating that the Bears are in control of the Nifty right now, and that the Bulls are not very far off from their safe zone. For today, the Bulls need to overcome the levels of 6250 to regain their lost grounds whereas the Bears need to breach the levels of 6160 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.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that Nifty may find support soon. The MACD is signalling a sell, with the histogram too growing in the negative. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6151.
5) Considering the above, our trading plan for the day is as under.
a) Around 6170 we will open fresh long positions with a SL of 6155 and a target of 6240. We will add to these long positions only above 6265.
b) Around 6245 we will open fresh short positions with a SL of 6265 and a target of 6185. We will add to these short positions only below 6155.
Happy Trading !!!
Buy calls on MBLINFRA FINCABLES & JUSTDIAL hit their targets on 03 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, the Nifty opened weak with a gap down of 27 points at 6195, made a quick high of 6209 and then traded bearishly, making a low of 6179 initially and then another low of 6171, where the Nifty found some buying and the Nifty, in the last two hours of trade, tried to recover some of the losses. The Nifty crossed the intraday high of 6209 and registered a new intraday high of 6222, before closing at 6211 with a nett loss of 10 points.
1) The Elder Ray readings : Bull Power reduces from +99 to -31 Bear Power rises from -48 to -81 indicating that the Bears are in control of the Nifty right now, and that the Bulls are not very far off from their safe zone. For today, the Bulls need to overcome the levels of 6250 to regain their lost grounds whereas the Bears need to breach the levels of 6160 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.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that Nifty may find support soon. The MACD is signalling a sell, with the histogram too growing in the negative. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6151.
5) Considering the above, our trading plan for the day is as under.
a) Around 6170 we will open fresh long positions with a SL of 6155 and a target of 6240. We will add to these long positions only above 6265.
b) Around 6245 we will open fresh short positions with a SL of 6265 and a target of 6185. We will add to these short positions only below 6155.
Happy Trading !!!
Buy calls on MBLINFRA FINCABLES & JUSTDIAL hit their targets on 03 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty bounced from our identified support zone of 6170. Opened long @ 6172 with a SL of 6150 and holding for 6200 or more
ReplyDeleteSquared off at 6194 booking a profit of 22 points
ReplyDelete