Nifty - 20 Jun 2014 - Critical EOW is here

Nifty continues to trade lower, but holding key supports, is poised critically at EOW.

As discussed yesterday, the Nifty remained "Volatile yet Bullish" during the trading session yesterday. Riding on positive global cues, the Nifty opened with a positive gap up of 22 points at 7580 and traded bullish in the first hour of trade, managing to hold in the green and even crossing the 7600 levels. However, the Nifty could not breach the resistance levels at 7620 and retreated from 7606 itself. Once the down move started, within 40 minutes, the Nifty plummetted from 7580 to 7503, kissing our identified support range. The Nifty found support there and went up to 7565 before closing at 7541 with a loss of 18 points over the previous close. We took a trade on the long side and could book out with a profit of 45 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +139 to +80 Bear Power rises from -8 to -24 indicating that the Bears are gaining strength at the cost of the Bulls now. For today, the Bulls need to overcome the levels of 7610 to maintain their upwards momentum whereas the Bears need to breach the levels of 7500 to maintain their downwards momentum.

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

3) The Nifty has closed below its 8EMA(7561) but is above its 13EMA and 21EMA and also above all its key DMAs which are rising consistently.

Nifty - 19 Jun 2014 - Volatile yet Bullish

Nifty makes higher high and higher low, yet closes in Red. Bulls in control as of now.

As discussed yesterday, "Bulls took over" the charge of the Nifty right at the start of the session and maintained the Nifty in the positive for the first couple of hours. The Nifty opened positive at 7636 and traded in the green, making a high of 7663. That is where the Bulls lacked follow up and the Nifty slipped in the red and dipped to 7516 within the next half an hour or so. Then came a recovery that took the Nifty almost a 100 points up and back in a highly volatile trading period. The Nifty finally closed at 7558 with a loss of 74 points against its previous close. We took a trade on the long side and got whipsawed, but lost only 20 points in that trade.

1) The Elder Ray readings : Bull Power rises from +120 to +139 Bear Power reduces from -9 to -8 indicating that the Bulls are strong as of now but the Bears cannot be ignored. For today, the Bulls need to overcome the levels of 7670 to maintain their upwards momentum whereas the Bears need to breach the levels of 7520 to maintain their downwards momentum.

2) The stochastics keep hovering on the edge of the overbought zone and are pointing flat.

3) The Nifty has closed below its 8EMA(7567) but has closed above its 13EMA(7524) and its 21EMA(7438) and is also above all its key DMAs.

Nifty - 18 Jun 2014 - Bulls take over

Bulls attempt to resume uptrend post a consolidation. Need to follow through.

In our yesterday's post, "Bears get a look in", we had suggested that Bears needed to sustain lower levels at least for a couple of sessions. That was not to happen. The Nifty, having opened with a negative gap down of 9 points at 7525, continued its consolidation for most part of the trading session yesterday, without even threatening to breach the previous day's lows. Then, in a late hour rush, the Bulls took the Nifty by the scruff and took it past 7600, to make a high of 7638 before closing at 7632, with a gain of 98 points over the previous close. We took a impromptu long position at 7540 and booked out at 7620 with a 80 points profit by the EOD. 

1) The Elder Ray readings : Bull Power rises from +50 to +120 Bear Power reduces from -11 to -9 indicating that the Bulls are in the drivers seat as of now. For today, the Bulls need to overcome the levels of 7655 to maintain their upwards momentum whereas the Bears need to breach the levels of 7525 to maintain their downwards momentum.

2) The stochastics are hovering on the edge of the overbought zone, pointing across.

3) The Nifty has now again closed above all its key EMAs and also above all its key DMAs.

Nifty - 17 Jun 2014 - Bears get a look in

Bears close Nifty below 8EMA for 2 sessions consecutively. Bulls need to come in. 

In our last post we had mentioned that "Bulls were in charge", but that was about 6 sessions ago and once the Nifty touched 7700 on 11th Jun, the Nifty has seen profit booking and then some more Bearish moves, wherein the Nifty made a low of 7488 yesterday. However, the Bulls have always managed to close the Nifty above the psychological levels of 7500. While our other priorities have kept us away from active trading and blogging, we have been monitoring the moves on the Nifty from the sidelines. If the Bears are not able to sustain lower levels in the coming couple of sessions, then the Bulls will get their chance to make even more all time new highs.

1) The Elder Ray readings : Bull Power reduces from +185 to +50 Bear Power rises from +32 to -11 indicating that the Bears have now regained their lost territory and need to do more to keep it that way. For today, the Bulls need to overcome the levels of 7555 to maintain their upwards momentum whereas the Bears need to breach the levels of 7485 to maintain their downwards momentum. 

2) The stochastics have just moved below the overbought zone and are pointing downwards.

3) The Nifty has closed below its 8EMA(7551) but is above its 13EMA(7499) & 21EMA(7405) and is also above all its key DMAs.