After failing to rise above near term resistances, Nifty returns back to support levels.
As discussed on Friday, the Nifty which had retained its bullish stance, pulled back about 6o points yet remained in the Bullish zone. The Nifty opened with a 13 point negative gap down at 6306 and made a high of 6327 in the first hour itself. The Nifty failed to reach our identified resistance zone of 6355 on Friday, and just after the first hour, the sell off started gradually, and the Nifty made a new low by the hour. During this fall, our trading plan of going long triggered, and we could make a small profit of 13 points.
1) The Elder Ray readings : Bull Power reduces from +99 To +77 Bear Power rises from +52 to -3 indicating that the Bulls have given up a little, but the Bears have regained their lost grounds. For today, the Bulls need to overcome the levels of 6335 to maintain their upwards momentum whereas the Bears need to breach the levels of 6245 to maintain their downwards momentum.
2) The stochastics barely touched the overbought zone and are now pointing downwards.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue. The MACD is pointing positive, but the histogram is falling but is in the positive. The ADX is showing equilibrium in the market. The Parabolic SAR continues with its Buy signal with the SL brought up to 6144.
5) Considering the above, our trading plan for the day is as under.
a) Around 6290 we will open fresh short positions with a SL of 6315 and a target of 6220. We will add to these short positions only below 6190.
b) Around 6215 we will open fresh long positions with a SL of 6190 and a target of 6285. We will add to these long positions only above 6315.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the Nifty which had retained its bullish stance, pulled back about 6o points yet remained in the Bullish zone. The Nifty opened with a 13 point negative gap down at 6306 and made a high of 6327 in the first hour itself. The Nifty failed to reach our identified resistance zone of 6355 on Friday, and just after the first hour, the sell off started gradually, and the Nifty made a new low by the hour. During this fall, our trading plan of going long triggered, and we could make a small profit of 13 points.
1) The Elder Ray readings : Bull Power reduces from +99 To +77 Bear Power rises from +52 to -3 indicating that the Bulls have given up a little, but the Bears have regained their lost grounds. For today, the Bulls need to overcome the levels of 6335 to maintain their upwards momentum whereas the Bears need to breach the levels of 6245 to maintain their downwards momentum.
2) The stochastics barely touched the overbought zone and are now pointing downwards.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue. The MACD is pointing positive, but the histogram is falling but is in the positive. The ADX is showing equilibrium in the market. The Parabolic SAR continues with its Buy signal with the SL brought up to 6144.
5) Considering the above, our trading plan for the day is as under.
a) Around 6290 we will open fresh short positions with a SL of 6315 and a target of 6220. We will add to these short positions only below 6190.
b) Around 6215 we will open fresh long positions with a SL of 6190 and a target of 6285. We will add to these long positions only above 6315.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) got triggered. Opened fresh short position at 6295 with a SL of 6315
ReplyDeleteTSL shifted down to cost @ 6295
ReplyDeletePart booked 15 points at 6280. Trailing rest with SL at 6295
ReplyDeleteTSL hit. Booked out at 6295 for the rest at cost
ReplyDelete