200DMA comes to the support of the falling Nifty. Bears in control despite recovery.
As discussed on Friday, the Nifty resumed its down move, as the Nifty after having a positive gap up of 23 points at the opening mark of 6024, traded bearishly for most of the trading session. The Nifty made two dips below the 6000 mark during the day, making a low of 5985. The late evening recovery saw the Nifty soar by more than 70 points to register a day high of 6056 before closing at 6048 with a nett gain of 47 points.
1) The Elder Ray readings : Bull Power reduces from +17 to -17 Bear Power rises from -86 to -89 indicating that the Bears are still holding their grip on the Nifty. For today the Bulls need to overcome the levels of 6070 to regain their lost grounds whereas the Bears need to breach the levels of 5990 maintain their downwards momentum.
2) The stochastics are in the neutral zone and are creeping up.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. The 200DMA has now stagnated for 3 trading sessions at 5981.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to evade a buy trigger with the histogram remaining in the negative. The ADX is suggesting a loss of momentum for the Bears but is still favoring them. The Parabolic SAR continues with its sell signal with the SL now brought down to 6094.
5) Considering the above, our trading plan for the day is as under.
a) Around 6090 we will open fresh short positions with a SL of 6110 and a target of 6005. We will add to these short positions only below 5990.
b) Around 6000 we will open fresh long positions with a SL of 5990 and a target of 6050. We will add to these long positions only above 6110.
Happy Trading !!!
Sell call on MCDOWELL-N hit its target on 14 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the Nifty resumed its down move, as the Nifty after having a positive gap up of 23 points at the opening mark of 6024, traded bearishly for most of the trading session. The Nifty made two dips below the 6000 mark during the day, making a low of 5985. The late evening recovery saw the Nifty soar by more than 70 points to register a day high of 6056 before closing at 6048 with a nett gain of 47 points.
1) The Elder Ray readings : Bull Power reduces from +17 to -17 Bear Power rises from -86 to -89 indicating that the Bears are still holding their grip on the Nifty. For today the Bulls need to overcome the levels of 6070 to regain their lost grounds whereas the Bears need to breach the levels of 5990 maintain their downwards momentum.
2) The stochastics are in the neutral zone and are creeping up.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. The 200DMA has now stagnated for 3 trading sessions at 5981.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to evade a buy trigger with the histogram remaining in the negative. The ADX is suggesting a loss of momentum for the Bears but is still favoring them. The Parabolic SAR continues with its sell signal with the SL now brought down to 6094.
5) Considering the above, our trading plan for the day is as under.
a) Around 6090 we will open fresh short positions with a SL of 6110 and a target of 6005. We will add to these short positions only below 5990.
b) Around 6000 we will open fresh long positions with a SL of 5990 and a target of 6050. We will add to these long positions only above 6110.
Happy Trading !!!
Sell call on MCDOWELL-N hit its target on 14 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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