Nifty may stage a bounce back today As discussed yesterday, the Nifty showed range bound consolidation during the entire trading session. After a weak opening at 4874, the Nifty traded within a 50 point range before closing at 4850 losing 94 points against the previous close. Today, the Nifty is likely to have a soft opening and is likely to stage a bounce back attempt. Will this attempt succeed? Let us do some Tech Analysis to find out.1) The Elder Ray readings : Bull Power reduced from +46 to -82 Bear Power increases from -56 to -137 This indicates that the Bears are in control and the Bulls are again losing power.2) The moving averages have again started to point downwards.3) The stochastics are coming near the oversold zone and can enter the zone by the end of today.4) In the above chart, the MACD has started declining again. The ADX has given out a fresh sell signal. ( The fact to be noted here, is that the ADX is an advance signal ) . The Nifty is almost near the lower Bollinger Band.5) Considering all the above facts, the Nifty is likely to open weak and trade in the red zone for the first half of today's session. However, after a test of 4780 4760 zone, it is likely to bounce back and test 4880. Around 4880 if a fresh wave of selling does not come, then Nifty will try for 4930. Below 4760, there is a strong support at 4720.6) Our trading plan for the day :a) We will look out for opening long positions around 4780 with a SL of 4750 and a target of 4850. We will add to long positions above 4890 only.b) We will look out for opening short positions if the Nifty is not able to take out 4880. Then, at around 4860 we will open short positions for a target of 4800 and a SL of 4890.Today's range for the Nifty - 4760 4940Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may stage a bounce back today
As discussed yesterday, the Nifty showed range bound consolidation during the entire trading session. After a weak opening at 4874, the Nifty traded within a 50 point range before closing at 4850 losing 94 points against the previous close. Today, the Nifty is likely to have a soft opening and is likely to stage a bounce back attempt. Will this attempt succeed? Let us do some Tech Analysis to find out.
1) The Elder Ray readings : Bull Power reduced from +46 to -82 Bear Power increases from -56 to -137 This indicates that the Bears are in control and the Bulls are again losing power.
2) The moving averages have again started to point downwards.
3) The stochastics are coming near the oversold zone and can enter the zone by the end of today.
4) In the above chart, the MACD has started declining again. The ADX has given out a fresh sell signal. ( The fact to be noted here, is that the ADX is an advance signal ) . The Nifty is almost near the lower Bollinger Band.
5) Considering all the above facts, the Nifty is likely to open weak and trade in the red zone for the first half of today's session. However, after a test of 4780 4760 zone, it is likely to bounce back and test 4880. Around 4880 if a fresh wave of selling does not come, then Nifty will try for 4930. Below 4760, there is a strong support at 4720.
6) Our trading plan for the day :
a) We will look out for opening long positions around 4780 with a SL of 4750 and a target of 4850. We will add to long positions above 4890 only.
b) We will look out for opening short positions if the Nifty is not able to take out 4880. Then, at around 4860 we will open short positions for a target of 4800 and a SL of 4890.
Today's range for the Nifty - 4760 4940
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to consolidate in a tight range after a weak opening On Friday, the Nifty found renewed resistance at 5030 and took support at 4924, before closing at 4943. Today, given the global cues, the Nifty is slated to open on a weak note. Seems like it could be a day full of trading opportunities for both the bulls and the bears.1) The Elder Ray readings : Bull Power reduced slightly from 48 to 46 also the Bear Power reduced from -80 to -56. This indicates that both are safe in their zone. The Bulls are in the positive and the Bears are in the negative. However, both are weakening. This coupled with the falling ATR, is a first indication of the range tightening and consolidation periods in forthcoming sessions.2) The 7DMA and the 50DMA have started to flatten out. While the EMAs are still pointing downwards. The stochastics are also right in the middle of the overbought and oversold range.3) In the above chart, the Bollinger bands are flattening out. The +ADX is converging with the -ADX showing sustainable consolidation ahead of us.4) Today, the market after opening with down gaps, can try to refill this gap.5) Considering the above, a) We will look out for opening longs 20 points above the opening mark, with a SL 20 points below the opening mark and a target of 4910. We will add to our longs only above 4960.b) Till the Nifty continues to trade below its opening, we will refrain from opening any new positions, as 4800 is a very strong support and opening shorts below 4850 will not be that rewarding as compared to the risk.For today, 4850 4950 could be the trading range for the Nifty.Happy trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to consolidate in a tight range after a weak opening
On Friday, the Nifty found renewed resistance at 5030 and took support at 4924, before closing at 4943. Today, given the global cues, the Nifty is slated to open on a weak note. Seems like it could be a day full of trading opportunities for both the bulls and the bears.
1) The Elder Ray readings : Bull Power reduced slightly from 48 to 46 also the Bear Power reduced from -80 to -56. This indicates that both are safe in their zone. The Bulls are in the positive and the Bears are in the negative. However, both are weakening. This coupled with the falling ATR, is a first indication of the range tightening and consolidation periods in forthcoming sessions.
2) The 7DMA and the 50DMA have started to flatten out. While the EMAs are still pointing downwards. The stochastics are also right in the middle of the overbought and oversold range.
3) In the above chart, the Bollinger bands are flattening out. The +ADX is converging with the -ADX showing sustainable consolidation ahead of us.
4) Today, the market after opening with down gaps, can try to refill this gap.
5) Considering the above,
a) We will look out for opening longs 20 points above the opening mark, with a SL 20 points below the opening mark and a target of 4910. We will add to our longs only above 4960.
b) Till the Nifty continues to trade below its opening, we will refrain from opening any new positions, as 4800 is a very strong support and opening shorts below 4850 will not be that rewarding as compared to the risk.
For today, 4850 4950 could be the trading range for the Nifty.
Happy trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty Weekly Review Last week, Nifty ended up gaining 75 points against the backdrop of a loss of 200 points in the previous week. During the week, Nifty registered a high of 5034 and a low of 4759, forming a range of about 270 points. Last week also saw the expiry of the Sept 2011 series, amidst high volatility. The whipsaw does not look like slowing down and we presume that the market will witness wild swings during the forthcoming week.In the above chart, MACD is showing decline on weekly basis, whereas Bollinger Bands suggest that the fall will be limited in the immediate future. For the next week, we will be looking at 4850 as the support area and 5030 as a resistance area for the Nifty.
We somehow need to tame this whipsaw, and having an open mind before the trading session and believing that the Nifty can go wild will get us there.
Happy Trading.
Bulls for the Next Week :BAJAJELEC CMAHENDRA IDEA INVENTURE MPHASIS POWERGRID RSSOFTWARE SATYAMCOMP SELAN VARDMNPOLY
Bears for the Next Week :COREEDUTEC DEEPIND GREENPLY HEG HITACHIHOM HOVS LAOPALA MANDHANA ONMOBILE RAJPALAYAM SMSPHARMA SOBHA UBENGG WOCKPHARMA
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty Weekly Review
Last week, Nifty ended up gaining 75 points against the backdrop of a loss of 200 points in the previous week. During the week, Nifty registered a high of 5034 and a low of 4759, forming a range of about 270 points.
Last week also saw the expiry of the Sept 2011 series, amidst high volatility. The whipsaw does not look like slowing down and we presume that the market will witness wild swings during the forthcoming week.
In the above chart, MACD is showing decline on weekly basis, whereas Bollinger Bands suggest that the fall will be limited in the immediate future.
For the next week, we will be looking at 4850 as the support area and 5030 as a resistance area for the Nifty.
We somehow need to tame this whipsaw, and having an open mind before the trading session and believing that the Nifty can go wild will get us there.
Happy Trading.
Bulls for the Next Week :
BAJAJELEC CMAHENDRA IDEA INVENTURE MPHASIS POWERGRID RSSOFTWARE SATYAMCOMP SELAN VARDMNPOLY
Bears for the Next Week :
COREEDUTEC DEEPIND GREENPLY HEG HITACHIHOM HOVS LAOPALA MANDHANA ONMOBILE RAJPALAYAM SMSPHARMA SOBHA UBENGG WOCKPHARMA
For cash market recommendations see our Daily Pre Market calls on NSE
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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.
