Bulls fail to capitalize as the Nifty closes lower after 3 consecutive higher closes.
In our yesterday's post, we had anticipated Bulls smelling redemption, Favorable global cues aided the Nifty to open with a positive gap up of 10 points at 6073. However, lack of aggression from the Bulls ensured that the high of 6083 made in the first hour of trade was never challenged. On the other hand, the Bears also did not drive this to their advantage and the Nifty lingered on in a narrow 12-15 point range for almost the entire trading session. In the last hour though the Bears could make a new intraday low of 6046, it was still higher than the previous days low of 6031. The Nifty finally closed at 6053 with a loss of 10 points.
1) The Elder Ray readings : Bull Power rises from -23 to -13 Bear Power reduces from -72 to -49 indicating that the Bulls continue to falter just near their own territory. For today, the Bulls need to overcome the levels of 6090 to regain their lost grounds whereas the Bears need to breach the levels of 6040 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and look like dipping down.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA(5979)
4) In the above chart, the volumes have fallen with the Nifty remaining stagnant, indicating that the participants are undecided over the next direction. The MACD is indicating a pause in the fall but the histogram remains in the negative. The ADX is showing a fall in the Bearish momentum but is also suggesting a fall in the Bullish momentum too. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 6149.
5) Considering the above, our trading plan for the day is as under.
a) Around 6085 we will open fresh short positions with a SL of 6110 and a target of 6025. We will add to these short positions only below 5990.
b) Around 6015 we will open fresh long positions with a SL of 5990 and a target of 6075. We will add to these long positions only above 6110.
Happy Trading !!!
Buy call on ASHAPURMIN hit its target on 10 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 yesterday's post, we had anticipated Bulls smelling redemption, Favorable global cues aided the Nifty to open with a positive gap up of 10 points at 6073. However, lack of aggression from the Bulls ensured that the high of 6083 made in the first hour of trade was never challenged. On the other hand, the Bears also did not drive this to their advantage and the Nifty lingered on in a narrow 12-15 point range for almost the entire trading session. In the last hour though the Bears could make a new intraday low of 6046, it was still higher than the previous days low of 6031. The Nifty finally closed at 6053 with a loss of 10 points.
1) The Elder Ray readings : Bull Power rises from -23 to -13 Bear Power reduces from -72 to -49 indicating that the Bulls continue to falter just near their own territory. For today, the Bulls need to overcome the levels of 6090 to regain their lost grounds whereas the Bears need to breach the levels of 6040 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and look like dipping down.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA(5979)
4) In the above chart, the volumes have fallen with the Nifty remaining stagnant, indicating that the participants are undecided over the next direction. The MACD is indicating a pause in the fall but the histogram remains in the negative. The ADX is showing a fall in the Bearish momentum but is also suggesting a fall in the Bullish momentum too. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 6149.
5) Considering the above, our trading plan for the day is as under.
a) Around 6085 we will open fresh short positions with a SL of 6110 and a target of 6025. We will add to these short positions only below 5990.
b) Around 6015 we will open fresh long positions with a SL of 5990 and a target of 6075. We will add to these long positions only above 6110.
Happy Trading !!!
Buy call on ASHAPURMIN hit its target on 10 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.