Recent up move in Nifty seems to have stalled with profit booking having started.
As discussed on Friday, the profit booking set in on the Nifty and Nifty closed in the red for two consecutive sessions now. The Nifty opened with a mild positive gap up of 2 points at 6742 and then immediately started its slide towards the 6700 levels, where it found some support but could not capitalize on that support and again got sold off. The Nifty made a low of 6685 before closing at 6694 with a loss of 42 points. We did not participate in the trade despite our trading plan to go long had triggered, as we had got whipsawed just one day ago. Also to be noted is that now the Nifty is making lower highs and lower lows since last two trading sessions.
1) The Elder Ray readings : Bull Power reduces from +145 to +101 Bear Power rises from +65 to +44 indicating that the Bulls are still in command but the Bears are within striking distance from safety. For today, the Bulls need to overcome the levels of 6755 to maintain their upwards momentum whereas the Bears need to breach the levels of 6645 to regain their lost grounds.
2) The stochastics are still in the overbought zone but are pointing downwards now.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have reduced with the fall in the Nifty indicating that the fall may get arrested. The MACD has given a hint of a sell signal with the histogram now almost touching the zero line. The ADX is also suggesting a fall in the Bullish momentum and the rise in the Bearish momentum. The Parabolic SAR has now turned into a sell signal with the initial SL placed at 6777.
5) Considering the above, our trading plan for the day is as under.
a) Around 6730 we will open fresh short positions with a SL of 6750 and a target of 6670. We will add to these short positions only below 6645.
b) Around 6665 we will open fresh long positions with a SL of 6645 and a target of 6725. We will add to these long positions only above 6750.
Happy Trading !!!
Buy calls on UTTAMSTL DAAWAT & SHAKTIPUMP hit their targets on 04 Apr 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 profit booking set in on the Nifty and Nifty closed in the red for two consecutive sessions now. The Nifty opened with a mild positive gap up of 2 points at 6742 and then immediately started its slide towards the 6700 levels, where it found some support but could not capitalize on that support and again got sold off. The Nifty made a low of 6685 before closing at 6694 with a loss of 42 points. We did not participate in the trade despite our trading plan to go long had triggered, as we had got whipsawed just one day ago. Also to be noted is that now the Nifty is making lower highs and lower lows since last two trading sessions.
1) The Elder Ray readings : Bull Power reduces from +145 to +101 Bear Power rises from +65 to +44 indicating that the Bulls are still in command but the Bears are within striking distance from safety. For today, the Bulls need to overcome the levels of 6755 to maintain their upwards momentum whereas the Bears need to breach the levels of 6645 to regain their lost grounds.
2) The stochastics are still in the overbought zone but are pointing downwards now.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have reduced with the fall in the Nifty indicating that the fall may get arrested. The MACD has given a hint of a sell signal with the histogram now almost touching the zero line. The ADX is also suggesting a fall in the Bullish momentum and the rise in the Bearish momentum. The Parabolic SAR has now turned into a sell signal with the initial SL placed at 6777.
5) Considering the above, our trading plan for the day is as under.
a) Around 6730 we will open fresh short positions with a SL of 6750 and a target of 6670. We will add to these short positions only below 6645.
b) Around 6665 we will open fresh long positions with a SL of 6645 and a target of 6725. We will add to these long positions only above 6750.
Happy Trading !!!
Buy calls on UTTAMSTL DAAWAT & SHAKTIPUMP hit their targets on 04 Apr 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan(b) has triggered and have opened fresh long position at 6662 with SL of 6642
ReplyDeleteExited long at 6674 with a profit of 12 points.
ReplyDelete