Nifty - 10 Jan 2014 - Bearish laziness continues

Nifty continues to trade in a confined range with bearishness growing gradually.

As discussed yesterday, the Nifty continued its "Tentative moves of consolidation" for yet another day. The Nifty opened with a positive gap up of 7 points at 6182 and then traded between 6188 and 6148 for the entire trading session before closing at 6168, right in the middle of the trading range. None of our trading plans triggered, and we were happy watching the gyrations of the Nifty.

1) The Elder Ray readings : Bull Power rises from -32 to -28 Bear Power also rises from -63 to -68 indicating that both the parties have tried to make their mild efforts yesterday. For today, the Bulls need to overcome the levels of 6210 to regain their lost grounds whereas the Bears need to breach the levels of 6140 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 and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.

Nifty - 09 Jan 2014 - Tentative moves of consolidation

Nifty has an inside day as it consolidates in a confined range, groping for direction.

As discussed yesterday, it was Bearishness after consolidation on the Nifty. The Nifty opened with a positive gap up of 16 points at 6178 and then traded in the green, albeit not very bullishly. The Nifty made a high of 6192 and a low of 6160 before closing at 6175 with a nett gain of 12 points over the previous close. We sat on the fence and did not venture into this lackluster trading session.

1) The Elder Ray readings : Bull Power reduces from -10 to -32 Bear Power also reduces from -87 to -63 indicative of the lack of conviction on both the sides. For today, the Bulls need to overcome the levels of 6220 to regain their lost grounds whereas the Bears need to breach the levels of 6150 to maintain their downwards momentum.

2) The stochastics are pointing downwards and are almost touching the oversold zone.

3) The Nifty continues to close below all its key EMAs and also below its 50DMA. However it has closed above its 100DMA and 200DMA.

Nifty - 08 Jan 2014 - Bearishness after consolidation

After consolidating for 2 days, Nifty broke down critical supports & turns Bearish.

As discussed yesterday, Nifty's Range bound consolidation continued till late afternoon yesterday. The Nifty opened with a positive gap up of 12 points at 6204 and made a quick high of 6222 in the first hour of trade itself. This high coincided with our identified resistance zone between 6220 and 6250 in our yesterday's post. The Nifty then traded bearishly in the red for almost the entire trading session, making a intraday low of 6145. However, it did not breach our identified support zone of 6155 to 6135 and in the last hour of trade attempted a bounce which fizzled off at 6194 and the Nifty closed at 6162. We took a trade on the long side as per our trading plan and could book a profit of 64 points on two lots traded.

1) The Elder Ray readings : Bull Power rises from -19 to -10 Bear Power also rises from -73 to -87 indicating that the Bears are having advantage, however the Bulls are not far away from safety as yet. For today, the Bulls need to overcome the levels of 6225 to regain their lost grounds whereas the Bears need to breach the levels of 6130 to maintain their downwards momentum.

2) The stochastics are pointing downwards and are approaching the oversold zone, but not there quite yet.

3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.

Nifty - 07 Jan 2014 - Range bound consolidation continues

Nifty continues to consolidate in a confined range. Bi-directional trade remains on.

As discussed yesterday, Nifty was in consolidation phase. The Nifty opened with a narrow gap up of 10 points at 6221, but immediately got sold off and breached the psychological level of 6200 after making a quick high of 6225. The Nifty then traded within a confined range but sustained below 6200 till the end of trade. The low for the day was at 6170 before closing at 6191 with a nett loss of 20 points. We took a trade on the long side as per our trading plan and could book a profit of 24 points by EOD.

1) The Elder Ray readings : Bull Power rises from -31 to -19 Bear Power slips from -81 to -73 indicating that the Bears still hold the grip on the Nifty, but the Bulls are crawling back towards safety. For today, the Bulls need to overcome the levels of 6240 to regain their lost grounds whereas the Bears need to breach the levels of 6160 to maintain their downwards momentum.

2) The stochastics are in the neutral zone, pointing downwards and fast approaching the oversold zone.

3) The Nifty has now closed below all its key EMAs and also below its 50DMA. However, the Nifty has closed above its 100DMA and its 200DMA.

Nifty - 06 Jan 2014 - Nifty in consolidation phase

After a 185 point fall in two days on the trot, Nifty is in consolidation phase.

On Friday, the Nifty opened weak with a gap down of 27 points at 6195, made a quick high of 6209 and then traded bearishly, making a low of 6179 initially and then another low of 6171, where the Nifty found some buying and the Nifty, in the last two hours of trade, tried to recover some of the losses. The Nifty crossed the intraday high of 6209 and registered a new intraday high of 6222, before closing at 6211 with a nett loss of 10 points.

1) The Elder Ray readings : Bull Power reduces from +99 to -31 Bear Power rises from -48 to -81 indicating that the Bears are in control of the Nifty right now, and that the Bulls are not very far off from their safe zone. For today, the Bulls need to overcome the levels of 6250 to regain their lost grounds whereas the Bears need to breach the levels of 6160 to maintain their downwards momentum.

2) The stochastics are in the neutral zone and are pointing downwards.

3) The Nifty has closed below all its key EMAs, but has closed above all its key DMAs.