After a 200 point fall in 2 trading sessions, the Nifty may consolidate in a narrow range.
Buy calls on IFBIND SUVEN and Sell call on LT hit their targets on 01 Aug 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, we saw more than "Glimpses of a down trend" on the Nifty. The Nifty opened at 7663 (right into our identified support zone) and after making a quick low of 7650, went up sharply, first to the levels of 7695 and then to 7717, before turning downwards. From there, the Nifty traded in a narrow range for almost an hour or so, before beginning its downwards march furiously. The Nifty broke the support zone, breached 7600 and reached a low of 7594 before closing at 7603 with a loss of 118 points against its previous close. We took a trade on the long side and could garner 100 points on two lots with a timely exit. We did not take the short trade on offer and missed out on another 50 points or so.
1) The Elder Ray readings : Bull Power reduces from +75 to +16 Bear Power rises from -4 to -107 indicating that now the Bears are in the control, but have yet to dislodge the Bulls. For today, the Bulls need to overcome the levels of 7720 to maintain their upwards momentum whereas the Bears need to breach the levels of 7575 to maintain their downwards momentum.
2) The stochastics are in the neutral zone now, and are pointing downwards.
3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD has now turned into a Sell signal, with the histogram too falling in the negative. The ADX is suggesting a equilibrium between the Bulls and the Bears with the overall momentum falling. The Parabolic SAR has now turned into a Sell with the initial SL placed at 7841.
5) Considering the above, our trading plan for the day is as under.
a) Around 7645 we will open fresh short positions with a SL of 7670 and a target of 7570. We will add to these short positions only below 7535.
b) Around 7560 we will open fresh long positions with a SL of 7535 and a target of 7640. We will add to these long positions only above 7670.
Happy Trading !!!
Buy calls on IFBIND SUVEN and Sell call on LT hit their targets on 01 Aug 2014
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 and have opened fresh intraday short position at 6650 with SL of 6670
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