After consolidating for 2 days, Nifty broke down critical supports & turns Bearish.
As discussed yesterday, Nifty's Range bound consolidation continued till late afternoon yesterday. The Nifty opened with a positive gap up of 12 points at 6204 and made a quick high of 6222 in the first hour of trade itself. This high coincided with our identified resistance zone between 6220 and 6250 in our yesterday's post. The Nifty then traded bearishly in the red for almost the entire trading session, making a intraday low of 6145. However, it did not breach our identified support zone of 6155 to 6135 and in the last hour of trade attempted a bounce which fizzled off at 6194 and the Nifty closed at 6162. We took a trade on the long side as per our trading plan and could book a profit of 64 points on two lots traded.
1) The Elder Ray readings : Bull Power rises from -19 to -10 Bear Power also rises from -73 to -87 indicating that the Bears are having advantage, however the Bulls are not far away from safety as yet. For today, the Bulls need to overcome the levels of 6225 to regain their lost grounds whereas the Bears need to breach the levels of 6130 to maintain their downwards momentum.
2) The stochastics are pointing downwards and are approaching the oversold zone, but not there quite yet.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue as of now. The MACD continues with its sell signal and the histogram continues to grow in the negative. The ADX is also suggesting a resumption of the down move. The Parabolic SAR has also turned into a Sell signal with the initial SL put at 6358.
5) Considering the above, our trading plan for the day is as under.
a) Around 6210 we will open fresh short positions with a SL of 6230 and a target of 6125. We will add to these short positions only below 6100.
b) Around 6115 we will open fresh long positions with a SL of 6100 and a target of 6175. We will add to these long positions only above 6230.
Happy Trading !!!
Buy calls on NIITLTD MANAKSIA INOXLEISUR & ZUARI hit their targets on 07 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, Nifty's Range bound consolidation continued till late afternoon yesterday. The Nifty opened with a positive gap up of 12 points at 6204 and made a quick high of 6222 in the first hour of trade itself. This high coincided with our identified resistance zone between 6220 and 6250 in our yesterday's post. The Nifty then traded bearishly in the red for almost the entire trading session, making a intraday low of 6145. However, it did not breach our identified support zone of 6155 to 6135 and in the last hour of trade attempted a bounce which fizzled off at 6194 and the Nifty closed at 6162. We took a trade on the long side as per our trading plan and could book a profit of 64 points on two lots traded.
1) The Elder Ray readings : Bull Power rises from -19 to -10 Bear Power also rises from -73 to -87 indicating that the Bears are having advantage, however the Bulls are not far away from safety as yet. For today, the Bulls need to overcome the levels of 6225 to regain their lost grounds whereas the Bears need to breach the levels of 6130 to maintain their downwards momentum.
2) The stochastics are pointing downwards and are approaching the oversold zone, but not there quite yet.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue as of now. The MACD continues with its sell signal and the histogram continues to grow in the negative. The ADX is also suggesting a resumption of the down move. The Parabolic SAR has also turned into a Sell signal with the initial SL put at 6358.
5) Considering the above, our trading plan for the day is as under.
a) Around 6210 we will open fresh short positions with a SL of 6230 and a target of 6125. We will add to these short positions only below 6100.
b) Around 6115 we will open fresh long positions with a SL of 6100 and a target of 6175. We will add to these long positions only above 6230.
Happy Trading !!!
Buy calls on NIITLTD MANAKSIA INOXLEISUR & ZUARI hit their targets on 07 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Hi itrade4profit,
ReplyDeleteNice trading plan.are you using atr range in your trade plan?
Dear V K Soni,
DeleteYes. My trading plan is based on Cam and ATR levels merged in my own way.
Hi itrade4profit,
ReplyDeleteNice trading plan.are you using atr range in your trade plan?
Ok,
ReplyDeleteTHANKS