With 3 days of higher high and higher low, the Bear grip is slipping. Crucial EOD today.
As discussed yesterday, the Bearish recovery continued on the Nifty. The Nifty opened positive at 6028 and then made a quick high of 6048 in the first hour of trade itself. However, the Nifty saw a thud of a fall and lost 80 points in the second hour of trade and made a low of 5965. From there the Nifty recovered slowly and steadily and closed at 6036 with a gain of 14 points over previous closing. We took a trade on the long side and booked a profit of 25 points on that trade.
1) The Elder Ray readings : Bull Power rises from -93 to -61 Bear Power reduces from -159 to -144 indicating that the Bears are still holding the control on the Nifty but the Bulls are now within striking distance of regain their footing. For today, the Bulls need to overcome the levels of 6100 to regain their lost grounds whereas the Bears need to breach the levels of 5950 to maintain their downwards momentum.
2) The stochastics are still 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.
Nifty does a higher low and higher high on daily charts. Yet technicals stay bearish.
As discussed yesterday, we saw the Nifty recover yet stay bearish. The Nifty opened flat to positive, but closed below 6000 for the first three hours making a low of 5962, where it found some support and then it began to cross the 6000 mark. By EOD the Nifty had made a high of 6028 before closing at 6022. We had a trading plan to go long at 5960 for a target of 6030. The Nifty avoided this plan by two points on both the ends. We missed to take plunge into this trade.
1) The Elder Ray readings : Bull Power rises from -120 to -93 Bear Power reduces from -205 to -159 indicating that Bears are still holding the control on the Nifty and that the Bulls have still some distance to cover. For today, the Bulls need to overcome the levels of 6105 to regain their lost grounds whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.
2) The stochastics stay in the oversold zone now for 8 consecutive sessions asserting the Bearish control.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and its 100DMA. However, it is above its 200DMA(5976)
Nifty respects supports and recovers from lows, yet technicals remain bearish.
As discussed yesterday, Nifty was "Oversold and approaching supports". The Nifty opened with a negative gap down of 54 points at 5948 and then made a quick low of 5933 where a bit of buying and short covering creep-ed in. The Nifty then kept on making higher lows for every hour of trade and in the last hour surged ahead to overcome crucial 200DMA levels and made a high of 6018 before closing at 6001. Once again our identified zone of 5955 5935 cushioned the supports for the Nifty. We took a trade on the long side and booked out with a profit of 25 points on that trade.
1) The Elder Ray readings : Bull Power reduces from -86 to -120 Bear Power rises from -166 to -205 indicating that despite the recovery, the Bulls have lost further grounds. For today, the Bulls need to overcome the levels of 6115 to regain their lost grounds whereas the Bears need to breach the levels of 5910 to maintain their downwards momentum.
2) The stochastics remain deeply into the oversold zone still.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA(5975)
After 7 days of drubbing, the Nifty is extremely oversold and is near support zone.
In our Friday's post we had suggested that there was bearishness despite the hammer exhibited by the Nifty on the daily charts. On Friday, the Nifty tried to recover some of the losses but could manage to linger around within a 30 point range near the highs of the hammer. Yesterday was the day when Bears asserted their presence. The Nifty opened with a negative gap down of 31 points at 6059 and then tried to rise, but could not cross the previous day's high neither the top of the hammer, and after making a high of 6075, the Nifty retreated below the key level of 6045 and 6027 which was the earlier low, and then made a intraday low of 5994 before closing at 6002. We did not trade yesterday.
1) The Elder Ray readings : Bull Power rises from -89 to -86 Bear Power also rises from -120 to -166 indicating that the Bears are continuing to rule the Nifty. For today, the Bulls need to overcome the levels of 6135 to regain their lost grounds whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.
2) The stochastics are well and truly in the oversold zone.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA(5973)
|
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.
