Nifty makes bullish hammer in the demand zone. Medium term Bearishness remains.
As discussed yesterday, we saw expiry jitters with negative global cues on our bourses too. The Nifty opened with a negative gap of 53 points at 6067 and then traded bearishly, making new intraday lows every hour. However, in the last 40 minutes of trade, maybe due to expiry rollovers, the Nifty recovered all the losses and some more to close at 6074 which was still down by 47 points from its previous close. We took a extremely low risk trade and managed to escape scot-free by timely exiting the trade and recovering our costs.
1) The Elder Ray readings : Bull Power reduces from -55 to -121 Bear Power rises from -115 to -176 indicating the bearish grip on the Nifty as yet. For today, the Bulls need to overcome the levels of 6185 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 6005 to maintain their downwards momentum.
2) The stochastics remain in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA (5969)
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue. The MACD continues to point downwards and the histogram continues to grow in the negative. The ADX is suggesting a rise in the bearish momentum with a mild rise in the overall directional momentum too. The Parabolic SAR continues its sell signal with the SL now brought down to 6327.
5) Considering the above, our trading plan for the day is as under.
a) Around 6115 we will open fresh short positions with a SL of 6135 and a target of 6055. We will add to these short positions only below 6010.
b) Around 6035 we will open fresh long positions with a SL of 6010 and a target of 6095. We will add to these long positions only above 6135.
Happy Trading !!!
Sell calls on HDFCBANK & SBIN hit their targets on 30 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, we saw expiry jitters with negative global cues on our bourses too. The Nifty opened with a negative gap of 53 points at 6067 and then traded bearishly, making new intraday lows every hour. However, in the last 40 minutes of trade, maybe due to expiry rollovers, the Nifty recovered all the losses and some more to close at 6074 which was still down by 47 points from its previous close. We took a extremely low risk trade and managed to escape scot-free by timely exiting the trade and recovering our costs.
1) The Elder Ray readings : Bull Power reduces from -55 to -121 Bear Power rises from -115 to -176 indicating the bearish grip on the Nifty as yet. For today, the Bulls need to overcome the levels of 6185 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 6005 to maintain their downwards momentum.
2) The stochastics remain in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA (5969)
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the fall may continue. The MACD continues to point downwards and the histogram continues to grow in the negative. The ADX is suggesting a rise in the bearish momentum with a mild rise in the overall directional momentum too. The Parabolic SAR continues its sell signal with the SL now brought down to 6327.
5) Considering the above, our trading plan for the day is as under.
a) Around 6115 we will open fresh short positions with a SL of 6135 and a target of 6055. We will add to these short positions only below 6010.
b) Around 6035 we will open fresh long positions with a SL of 6010 and a target of 6095. We will add to these long positions only above 6135.
Happy Trading !!!
Sell calls on HDFCBANK & SBIN hit their targets on 30 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir nifty in buy zone can we go long at 6035
ReplyDeletesir is it a breakdown as per atr method
ReplyDelete