Nifty - 30 May 2014 - Sniffing downwards

At end of month, Nifty is looking to fall away. Bearish engulf forming on the weekly.

Just on Wednesday we had suggested "Bulls losing momentum" and yesterday it was all "Expiry Jitters" on the bourses. The Nifty opened with a negative gap down of 13 points at 7317 and made a quick high of 7325 where the upward move had got thwarted on the earlier day too. Once the Nifty could not overcome this level, the Bears took charge and the Nifty slowly but surely started to slip. Once the levels of 6270 were breached, there was no looking back and the Nifty went on a spiraling fall. The fall got arrested in our identified support zone of 7240 7210 and the Nifty made a low of 7224 before closing at 7236. The Nifty has now entered the Sell on Rise mode.

1) The Elder Ray readings : Bull Power reduces from +138 to +115 Bear Power rises from +96 to +14 indicating that the Bears are nearing to regaining their safe zone. For today, the Bulls need to overcome the levels of 7330 to maintain their upwards momentum whereas the Bears need to breach the levels of 7215 to regain their lost grounds.

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

3) The Nifty has closed below its 8EMA(7270) but has closed above its 13EMA(7210) and its 21EMA(7117). However, the Nifty has closed above all its key DMAs.

Nifty - 29 May 2014 - Expiry Jitters

Nifty threatens to turn volatile on expiry day by showing NR7 day on its eve.

As discussed yesterday, we saw "Bulls losing momentum" on the Nifty, although they did defend the 7300 level decisively, but they could not take out the 7350 level even. The Nifty opened with a positive gap up of 7 points at 7325 and then gyrated for the entire trading session within a narrow range of 42 points between 7303 on the lower side and 7345 on the higher side, before closing at 7330 with a gain of 12 points over the previous close. Thus, the Bulls although maintaining their advantage, are clearly losing on the momentum and need to pick up quickly now.

1) The Elder Ray readings : Bull Power reduces from +187 to +138 Bear Power also reduces from +89 to +96 indicating that the Bulls are still in control of the Nifty. For today, the Bulls need to overcome the levels of 7365 to maintain their upwards momentum whereas the Bears need to breach the levels of 7225 to regain their lost grounds.

2) The stochastics continue to hover just below the overbought zone and continue to point flat.

3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

Nifty - 28 May 2014 - Bulls losing momentum

Bulls protect previous day lows, but could not take out previous day's highs either.

As discussed yesterday, it was "Bullish yet turbulent" on the Nifty all through the trading session yesterday. The Nifty opened positive with a gap up of 4 points at 7363 and made a quick high of 7373 from where there was all round profit booking and the Nifty slipped below 7310 within the first few minutes of trade. A rebound attempt from thereon got thwarted around 7345 and the Nifty then slipped back to below 7300 and made a low of 7275 before the afternoon. That low got tested a couple of more times during the day and Bulls were able to hold that lows. The Nifty finally closed at 7318 making into what is known as a inside day, a consolidation indication.

1) The Elder Ray readings : Bull Power reduces from +340 to +187 Bear Power rises from +105 to +89 indicating that though the Bulls are losing momentum, the Bears are yet to make most out of this opportunity. For today, the Bulls need to overcome the levels of 7395 to maintain their upwards momentum whereas the Bears need to breach the levels of 7205 to regain their lost grounds.

2) The stochastics keep on hovering just below the overbought zone and pointing flat.

3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

Nifty - 27 May 2014 - Bullish despite turbulence

Nifty shocks after attempting new highs, shakes out weak bulls yet stays Bullish.

As discussed yesterday, the "Expiry week" started on a bullish note as the Nifty opened with a huge 62 point gap up at 7429 and traded bullish for the entire morning session. During this period, the Nifty crossed our identified resistance zone around 7470 to make a high of 7504, just 60 points short of the all time high of 7564. However, in the afternoon session, the Nifty got top heavy and a sell off saw the Nifty plunge below our identified support zone around 7310 to make a low of 7269, from where, in the last hour of trade, the Nifty regained 90 points to close at 7359 with a loss of just 8 points from its previous close. To be frank, we did not dare to take up any trade in this volatile session, where any sort of stop losses got hit before one could blink.

1) The Elder Ray readings : Bull Power rises from +250 to +340 Bear Power also rises from +163 to +105 indicating that the Bears are recouping whilst the Bulls retain control over the Nifty. For today, the Bulls need to overcome the levels of 7540 to maintain their upwards momentum whereas the Bears need to breach the levels of 7195 to regain their lost grounds.

2) The stochastics continue to hover just below the overbought zone indicating room for an upwards move.

3) The Nifty keeps on closing above all its key EMAs and also above all its key DMAs.

Nifty - 26 May 2014 - Bullish expiry week ahead

At the start of expiry week, Bulls hold sway over Nifty. New highs may be attempted.

We have been "off the blog" for the last 10 days or so, due to some technical issues with our blogger account. However, we have not been out of trade and have had some really lucrative trades during this period.

As discussed earlier, "Bulls have retained advantage" since then, although there was some turbulence in between, but it was handled well by the Bulls.

1) The Elder Ray readings : Bull Power rises from +228 to +250 Bear Power also rises a bit from +166 to +163 indicating the strength of the Bullish hold on the Nifty. For today, the Bulls need to overcome the levels of 7420 to maintain their upwards momentum whereas the Bears need to breach the levels of 7165 to regain their lost grounds.

2) The stochastics are below the overbought zone and are pointing upwards.

3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.