AD Code

Tuesday 15 July 2014

Nifty - 15 Jul 2014 - Support @ 50DMA found

Nifty tests support at 50DMA, yet remains a Sell on rise. Bulls need to come in here.

As discussed yesterday, the Nifty which was "Poised Bearishly", found support at 50DMA(7400) and closed a good 50 points above it. However, the technicals remain in favor of the Bears as yet. The Nifty opened with a positive gap up of 9 points at 7469, made a low of 7422 and then a high of 7478 before closing at 7454 with a loss of 5 points against its previous close. The further direction of the Nifty will be decided on how the Bulls are able to sustain the upcoming relief rally.

1) The Elder Ray readings : Bull Power reduces from +26 to -100 Bear Power rises from -152 to -157 indicating that the Bears are now in control of the Nifty and that they have dislodged the Bulls too. For today, the Bulls need to overcome the levels of 7560 to regain their lost grounds whereas the Bears need to breach the levels of 7400 to maintain their downwards momentum.

2) The stochastics have now reached the oversold zone.

3) The Nifty continues to close below all its key EMAs but above all its key DMAs.
 



4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that there could be supports round the corner. The MACD continues to plunge downwards with the histogram too growing in the negative. The ADX is suggesting a equilibrium for the Bulls and the Bears. The Parabolic SAR continues with its Sell signal with the SL now brought down to 7747.

5) Considering the above, our trading plan for the day is as under.

a) Around 7515 we will open fresh short positions with a SL of 7535 and a target of 7400. We will add to these short positions only below 7370.

b) Around 7390 we will open fresh long positions with a SL of 7370 and a target of 7505. We will add to these long positions only above 7535.

Happy Trading !!! 

Sell call on HCLTECH hit its target on 14 Jul 2014

Also visit Just Nifty and the Nifty Range blogs.


For cash market recommendations see our Daily Pre Market calls on NSE
Posted by at
Labels: , ,

2 comments:

  1. I Trade 4 Profit Daily15 July 2014 at 09:44

    Trading plan(a) has triggered and have opened fresh intraday short position at 7515 with SL of 7535

    ReplyDelete
  2. I Trade 4 Profit Daily15 July 2014 at 12:17

    Squared off short position at 7475 with 40 points profit, as Nifty got oversold on the 15 mins intraday chart.

    ReplyDelete

Please add your comments here. Comments will be moderated.

Subscribe to: Post Comments (Atom)
Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.