Nifty breaks down from neutrality, as Bears take the charge. Sell on rise sets in.
In our yesterday's post, we had mentioned "Neutrality had reached mid month" and that neutrality got resolved on the down side yesterday. The Nifty, which had opened with a positive gap of 4 points at 6088 made a quick high of 6094 and then started sliding down.The Nifty continued to slide by the hour, making new lows every hour. It paused for a while in our identified support zone of 6050 6030 and attempted a recovery, that got thwarted at 6068 and the down move resumed to breach 6030 and then late in the evening even the 6000 was taken out. The Nifty made a low of 5991 before closing at 6001 with a loss of 83 points. We booked a loss of 22 points in the trade taken on long side.
1) The Elder Ray readings : Bull Power remains stagnant at +17 Bear Power rises from -13 to -86 indicating that the Bulls could not build up on their advantage and that the Bears enhanced their grip on the Nifty. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA and 100DMA. It is however, above its 200DMA(5981)
Nifty continues to reach higher and sell off, maintaining equilibrium in a narrow range.
As discussed in our last post, "Rangebound consolidation" continued for the second trading session too. The Nifty, riding high on global cues, opened with a positive gap up of 23 points at 6085, made a high of 6107 and a low of 6077 before closing at 6084, trading in a tight 30 points range. Nifty's inability to cross the gap zone at 6100 6110 shows weakness at higher levels, while its higher lows in 7 consecutive trading sessions is indicative of rise in support levels.
1) The Elder Ray readings : Bull Power rises from -9 to +17 Bear Power reduces from -38 to -13 indicating the equality amongst the Bulls and the Bears as of now. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6070 to maintain their downwards momentum.
2) The stochastics are in the neutral region.
3) The Nifty has now closed below its 21EMA and 13EMA, however it is above its 8EMA. The Nifty is also below its 50DMA and 100DMA but is above its 200DMA.
Bulls fail to capitalize as the Nifty closes lower after 3 consecutive higher closes.
In our yesterday's post, we had anticipated Bulls smelling redemption, Favorable global cues aided the Nifty to open with a positive gap up of 10 points at 6073. However, lack of aggression from the Bulls ensured that the high of 6083 made in the first hour of trade was never challenged. On the other hand, the Bears also did not drive this to their advantage and the Nifty lingered on in a narrow 12-15 point range for almost the entire trading session. In the last hour though the Bears could make a new intraday low of 6046, it was still higher than the previous days low of 6031. The Nifty finally closed at 6053 with a loss of 10 points.
1) The Elder Ray readings : Bull Power rises from -23 to -13 Bear Power reduces from -72 to -49 indicating that the Bulls continue to falter just near their own territory. For today, the Bulls need to overcome the levels of 6090 to regain their lost grounds whereas the Bears need to breach the levels of 6040 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and look like dipping down.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it is above its 200DMA(5979)
Nifty continues to make higher highs higher lows and higher close. Neutral as of now.
As discussed on Friday, it was evident that the Bears were losing grip on the Nifty. The Nifty opened with a nice positive gap up of 41 points at 6078 and then traded in the positive territory for the entire trading session, notwithstanding the thudding fall of almost 50 points intraday, that came during the session. The Nifty closed at a promising level of 6063 before making a intraday low of 6031.
1) The Elder Ray readings : Bull Power rises from -61 to -23 Bear Power reduces from -144 to -72 indicating that the Bulls are now within striking distance of regaining their territory. For today, the Bulls need to overcome the levels of 6095 to regain their lost grounds whereas the Bears need to breach the levels of 6020 to maintain their downwards momentum.
2) The stochastics are now out of the oversold zone and are looking up.
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(5978)
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