Bears pound Bulls lacking conviction on a breakout. Equilibrium reached again.
As discussed on Friday, the Bulls lacked conviction on their attempt of a break out. The Nifty, guided by weak global cues, opened with a 44 point gap down at 6302. It made a last ditch attempt at bridging the gap, but failed miserably at 6331, which will from now on become a key level to watch out for. The Nifty then started a slide on its own and breached the support zone of 6310 6295 with great ease and made a intraday low of 6264 before closing at 6267 with a nett loss of 79 points.
1) The Elder Ray readings : Bull Power reduces from +70 to +48 Bear Power rises from +30 to -19 indicating that now there is a semblance of equilibrium again on the Nifty. For today, the Bulls need overcome the levels of 6335 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 to maintain their downwards momentum.
2) The stochastics are pointing downwards after touching the overbought zone.
3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes had increased with the fall in the Nifty indicating that the fall may continue. The MACD is about to trigger a down move, but has not triggered yet. The histogram is falling but is in the positive. The ADX is showing equilibrium between the Bulls and the Bears. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6175.
5) Considering the above, our trading plan for the day is as under.
a) Around 6230 we will open fresh long positions with a SL of 6210 and a target of 6290. We will add to these long positions only above 6325.
b) Around 6305 we will open fresh short positions with a SL of 6325 and a target of 6240. We will add to these short positions only below 6210.
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 Bulls lacked conviction on their attempt of a break out. The Nifty, guided by weak global cues, opened with a 44 point gap down at 6302. It made a last ditch attempt at bridging the gap, but failed miserably at 6331, which will from now on become a key level to watch out for. The Nifty then started a slide on its own and breached the support zone of 6310 6295 with great ease and made a intraday low of 6264 before closing at 6267 with a nett loss of 79 points.
1) The Elder Ray readings : Bull Power reduces from +70 to +48 Bear Power rises from +30 to -19 indicating that now there is a semblance of equilibrium again on the Nifty. For today, the Bulls need overcome the levels of 6335 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 to maintain their downwards momentum.
2) The stochastics are pointing downwards after touching the overbought zone.
3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes had increased with the fall in the Nifty indicating that the fall may continue. The MACD is about to trigger a down move, but has not triggered yet. The histogram is falling but is in the positive. The ADX is showing equilibrium between the Bulls and the Bears. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6175.
5) Considering the above, our trading plan for the day is as under.
a) Around 6230 we will open fresh long positions with a SL of 6210 and a target of 6290. We will add to these long positions only above 6325.
b) Around 6305 we will open fresh short positions with a SL of 6325 and a target of 6240. We will add to these short positions only below 6210.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty has opened below our identified support zone of 6230 6210. We have open short positions since 6300 on Friday.
ReplyDeleteThe action plan henceforth is to book profits on one lot and let the second lot trail with a initial SL for the day at 6230.
We will be monitoring the rise as and when new high or new low is made.
Squared off one lot at 6180 booking 120 points of profit. Trailing one lot with a SL of 6230
ReplyDeleteTSL shifted down to 6190
ReplyDeleteTSL shifted to 6160.
ReplyDeleteBut will book out at EOD at whatever price if TSL not hit.
Booked out at 6140 with a profit of 160 points on this lot.
ReplyDeleteTotal profit 120 +160=280 points on two lots shorted at 6300 on Friday.
Happy Trading !!!