After 7 days of drubbing, the Nifty is extremely oversold and is near support zone.
In our Friday's post we had suggested that there was bearishness despite the hammer exhibited by the Nifty on the daily charts. On Friday, the Nifty tried to recover some of the losses but could manage to linger around within a 30 point range near the highs of the hammer. Yesterday was the day when Bears asserted their presence. The Nifty opened with a negative gap down of 31 points at 6059 and then tried to rise, but could not cross the previous day's high neither the top of the hammer, and after making a high of 6075, the Nifty retreated below the key level of 6045 and 6027 which was the earlier low, and then made a intraday low of 5994 before closing at 6002. We did not trade yesterday.
1) The Elder Ray readings : Bull Power rises from -89 to -86 Bear Power also rises from -120 to -166 indicating that the Bears are continuing to rule the Nifty. For today, the Bulls need to overcome the levels of 6135 to regain their lost grounds whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.
2) The stochastics are well and truly in the oversold zone.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA(5973)
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the Nifty may be approaching a support zone. The MACD however, continues to point downwards with the histogram also growing in the negative. The ADX is also suggesting a rise in the bearish momentum. The Parabolic SAR continues with its SELL signal with the SL now brought down to 6290.
5) Considering the above, our trading plan for the day is as under.
a) Around 5955 we will open fresh long positions with a SL of 5935 and a target of 6035. We will add to these long positions only above 6060.
b) Around 6040 we will open fresh short positions with a SL of 6060 and a target of 5980. We will add to these short positions only below 5935.
Happy Trading !!!
Buy call on ABAN & Sell call on TATAMOTORS hit their targets on 03 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
In our Friday's post we had suggested that there was bearishness despite the hammer exhibited by the Nifty on the daily charts. On Friday, the Nifty tried to recover some of the losses but could manage to linger around within a 30 point range near the highs of the hammer. Yesterday was the day when Bears asserted their presence. The Nifty opened with a negative gap down of 31 points at 6059 and then tried to rise, but could not cross the previous day's high neither the top of the hammer, and after making a high of 6075, the Nifty retreated below the key level of 6045 and 6027 which was the earlier low, and then made a intraday low of 5994 before closing at 6002. We did not trade yesterday.
1) The Elder Ray readings : Bull Power rises from -89 to -86 Bear Power also rises from -120 to -166 indicating that the Bears are continuing to rule the Nifty. For today, the Bulls need to overcome the levels of 6135 to regain their lost grounds whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.
2) The stochastics are well and truly in the oversold zone.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA(5973)
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the Nifty may be approaching a support zone. The MACD however, continues to point downwards with the histogram also growing in the negative. The ADX is also suggesting a rise in the bearish momentum. The Parabolic SAR continues with its SELL signal with the SL now brought down to 6290.
5) Considering the above, our trading plan for the day is as under.
a) Around 5955 we will open fresh long positions with a SL of 5935 and a target of 6035. We will add to these long positions only above 6060.
b) Around 6040 we will open fresh short positions with a SL of 6060 and a target of 5980. We will add to these short positions only below 5935.
Happy Trading !!!
Buy call on ABAN & Sell call on TATAMOTORS hit their targets on 03 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opened right into our identified support zone and looks like it has taken support now.
ReplyDeleteHave opened fresh intraday long position at 5940 with SL of 5920
Squared off intraday long position at 5965 with a profit of 25 points
ReplyDelete