Nifty breaks down from neutrality, as Bears take the charge. Sell on rise sets in.
In our yesterday's post, we had mentioned "Neutrality had reached mid month" and that neutrality got resolved on the down side yesterday. The Nifty, which had opened with a positive gap of 4 points at 6088 made a quick high of 6094 and then started sliding down.The Nifty continued to slide by the hour, making new lows every hour. It paused for a while in our identified support zone of 6050 6030 and attempted a recovery, that got thwarted at 6068 and the down move resumed to breach 6030 and then late in the evening even the 6000 was taken out. The Nifty made a low of 5991 before closing at 6001 with a loss of 83 points. We booked a loss of 22 points in the trade taken on long side.
1) The Elder Ray readings : Bull Power remains stagnant at +17 Bear Power rises from -13 to -86 indicating that the Bulls could not build up on their advantage and that the Bears enhanced their grip on the Nifty. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA and 100DMA. It is however, above its 200DMA(5981)
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD is indicating aborted recovery attempt and resumption of the down move with the histogram also growing in the negative. The ADX is now favoring the Bears. The Parabolic SAR continues with its Sell signal with the SL at 6107.
5) Considering the above, our trading plan for the day is as under.
a) Around 6040 we will open fresh short positions with a SL at 6060 and a target of 5970. We will add to these short positions only below 5940.
b) Around 5960 we will open fresh long positions with a SL of 5940 and a target of 6030. We will add to these long positions only above 6060.
Happy Trading !!!
Sell calls on CIPLA and KOTAKBANK hit their targets on 13 Feb 14
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 mentioned "Neutrality had reached mid month" and that neutrality got resolved on the down side yesterday. The Nifty, which had opened with a positive gap of 4 points at 6088 made a quick high of 6094 and then started sliding down.The Nifty continued to slide by the hour, making new lows every hour. It paused for a while in our identified support zone of 6050 6030 and attempted a recovery, that got thwarted at 6068 and the down move resumed to breach 6030 and then late in the evening even the 6000 was taken out. The Nifty made a low of 5991 before closing at 6001 with a loss of 83 points. We booked a loss of 22 points in the trade taken on long side.
1) The Elder Ray readings : Bull Power remains stagnant at +17 Bear Power rises from -13 to -86 indicating that the Bulls could not build up on their advantage and that the Bears enhanced their grip on the Nifty. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA and 100DMA. It is however, above its 200DMA(5981)
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD is indicating aborted recovery attempt and resumption of the down move with the histogram also growing in the negative. The ADX is now favoring the Bears. The Parabolic SAR continues with its Sell signal with the SL at 6107.
5) Considering the above, our trading plan for the day is as under.
a) Around 6040 we will open fresh short positions with a SL at 6060 and a target of 5970. We will add to these short positions only below 5940.
b) Around 5960 we will open fresh long positions with a SL of 5940 and a target of 6030. We will add to these long positions only above 6060.
Happy Trading !!!
Sell calls on CIPLA and KOTAKBANK hit their targets on 13 Feb 14
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan(a) has triggered almost. But it is too late in the day for any intraday trades. So skipping this one.
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