Nifty makes bullish hammer in the demand zone. Medium term Bearishness remains.
As discussed yesterday, we saw expiry jitters with negative global cues on our bourses too. The Nifty opened with a negative gap of 53 points at 6067 and then traded bearishly, making new intraday lows every hour. However, in the last 40 minutes of trade, maybe due to expiry rollovers, the Nifty recovered all the losses and some more to close at 6074 which was still down by 47 points from its previous close. We took a extremely low risk trade and managed to escape scot-free by timely exiting the trade and recovering our costs.
1) The Elder Ray readings : Bull Power reduces from -55 to -121 Bear Power rises from -115 to -176 indicating the bearish grip on the Nifty as yet. For today, the Bulls need to overcome the levels of 6185 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 6005 to maintain their downwards momentum.
2) The stochastics remain in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA (5969)
Dismal global cues may help the Bears to get a stranglehold on the Nifty today.
As discussed yesterday, the Trading range is getting lower, and it was very evident. The zone around 6180 which on earlier occasions had provided support, now became a resistance zone. The Nifty, despite a positive opening with a opening gap of 35 points, remained subdued without any Bullish followup. The Nifty could only reach a high of 6170 and in the late afternoon trade, the Nifty slipped below the key pivot level of 6130 to make a low of 6110 before closing at 6120. We took a trade on the short side, with two lots and booked a profit of 100 points on both lots put together.
1) The Elder Ray readings : Bull Power rises from -79 to -55 Bear Power reduces from -157 to -115 indicating that the Bulls have recovered, but just a bit. 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 6095 to maintain their downwards momentum.
2) The stochastics are now completely in the oversold zone.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA and 100DMA. The 200DMA now is at 5966, indicating Bears have a free territory of about 150 points.
Post the RBI news, Nifty respects lower level supports. Lower trading range now.
As discussed yesterday, Bears were back with a bang. The Nifty opened with a minor negative gap down of 4 points at 6132 and then struggled to climb up before the RBI announcement. The Nifty however, could not even touch our identified resistance zone of 6170 6195 and got sold off to make a low of 6085.95 (within our identified support zone of 6100 6080) and recovered half of that loss to close at 6126 with a nett loss of 10 points. We did not participate in the market yesterday.
1) The Elder Ray readings : Bull Power reduces from -74 to -79 Bear Power rises from -132 to -157 indicating that the Bears are in full control of the Nifty as of now. 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 6065 to maintain their downwards momentum.
2) The slow stochastics are in the oversold zone and are looking up, however, the fast stochastics are still above the oversold zone and are pointing downwards.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA. However, it is above its 100DMA(6114) and 200DMA(5964).
Bears punch a huge 75 point gap and return with a Bang. Selling all rises to continue.
As discussed yesterday, at close last week, the Nifty had returned to a equilibrium. Owing to global cues however, the Nifty opened with a huge negative gap down of 80 points at 6186 and could recover hardly 5 points of that gap. The Bears stamped their authority for the entire trading session, by pushing down the Nifty by yet another 50 points by the end of day. The Nifty closed at 6136 after making a day low of 6130. We had a couple of lots of short positions taken at 6300 on Friday, which we squared off yesterday for a gain of 280 points in total.
1) The Elder Ray readings : Bull Power reduces from +48 to -74 Bear Power rises from -19 to -132 indicating that the Bears are now in full control of the Nifty with the Bulls needing to do some catch up. For today, the Bulls need to overcome the levels of 6245 to regain their lost grounds whereas the Bears need to breach the levels of 6105 to maintain their downwards momentum.
2) The fast stochastics are already in the oversold zone. But the slow stochastics are trailing way behind in the neutral zone, indicating that there is room for a further downside.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA. However, it is still above its 100DMA(6106) and 200DMA(5961).
Bears pound Bulls lacking conviction on a breakout. Equilibrium reached again.
As discussed on Friday, the Bulls lacked conviction on their attempt of a break out. The Nifty, guided by weak global cues, opened with a 44 point gap down at 6302. It made a last ditch attempt at bridging the gap, but failed miserably at 6331, which will from now on become a key level to watch out for. The Nifty then started a slide on its own and breached the support zone of 6310 6295 with great ease and made a intraday low of 6264 before closing at 6267 with a nett loss of 79 points.
1) The Elder Ray readings : Bull Power reduces from +70 to +48 Bear Power rises from +30 to -19 indicating that now there is a semblance of equilibrium again on the Nifty. For today, the Bulls need overcome the levels of 6335 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 to maintain their downwards momentum.
2) The stochastics are pointing downwards after touching the overbought zone.
3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs.
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