Post the RBI news, Nifty respects lower level supports. Lower trading range now.
As discussed yesterday, Bears were back with a bang. The Nifty opened with a minor negative gap down of 4 points at 6132 and then struggled to climb up before the RBI announcement. The Nifty however, could not even touch our identified resistance zone of 6170 6195 and got sold off to make a low of 6085.95 (within our identified support zone of 6100 6080) and recovered half of that loss to close at 6126 with a nett loss of 10 points. We did not participate in the market yesterday.
1) The Elder Ray readings : Bull Power reduces from -74 to -79 Bear Power rises from -132 to -157 indicating that the Bears are in full control of the Nifty as of now. 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 6065 to maintain their downwards momentum.
2) The slow stochastics are in the oversold zone and are looking up, however, the fast stochastics are still above the oversold zone and are pointing downwards.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA. However, it is above its 100DMA(6114) and 200DMA(5964).
4) In the above chart, the volumes have risen with the fall in the Nifty indicating that the fall may continue. The MACD continues to point downwards with the histogram growing in the negative. The ADX is also signalling a rise in the Bearish momentum. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6350.
5) Considering the above, our trading plan for the day is as under.
a) Around 6170 we will open fresh short positions with a SL of 6190 and a target of 6090. We will add to these short positions only below 6065.
b) Around 6085 we will open fresh long positions with a SL of 6065 and a target of 6160. We will add to these long positions only above 6190.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
Sell calls on IDEA INDUSINDBK & MCLEODRUSS hit their targets on 28 Jan 2014
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, Bears were back with a bang. The Nifty opened with a minor negative gap down of 4 points at 6132 and then struggled to climb up before the RBI announcement. The Nifty however, could not even touch our identified resistance zone of 6170 6195 and got sold off to make a low of 6085.95 (within our identified support zone of 6100 6080) and recovered half of that loss to close at 6126 with a nett loss of 10 points. We did not participate in the market yesterday.
1) The Elder Ray readings : Bull Power reduces from -74 to -79 Bear Power rises from -132 to -157 indicating that the Bears are in full control of the Nifty as of now. 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 6065 to maintain their downwards momentum.
2) The slow stochastics are in the oversold zone and are looking up, however, the fast stochastics are still above the oversold zone and are pointing downwards.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA. However, it is above its 100DMA(6114) and 200DMA(5964).
4) In the above chart, the volumes have risen with the fall in the Nifty indicating that the fall may continue. The MACD continues to point downwards with the histogram growing in the negative. The ADX is also signalling a rise in the Bearish momentum. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6350.
5) Considering the above, our trading plan for the day is as under.
a) Around 6170 we will open fresh short positions with a SL of 6190 and a target of 6090. We will add to these short positions only below 6065.
b) Around 6085 we will open fresh long positions with a SL of 6065 and a target of 6160. We will add to these long positions only above 6190.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
Sell calls on IDEA INDUSINDBK & MCLEODRUSS hit their targets on 28 Jan 2014
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) got triggered and have opened fresh short positions at 6170 with SL of 6190
ReplyDeletePart booked one lot at 6130 with a profit of 40 points.
ReplyDeleteTrailing rest with SL of 6145
TSL shifted to 6130 now
ReplyDeleteBooked out at 6110 with a profit of 60 points on the balance lot.
ReplyDeleteTotal booked 40 + 60 = 100 points for the day on two lots.