Nifty - 20 Feb 2013 - Bulls stage a comeback

On a low volume day, Bulls stage a smart comeback. But need to do more now.

As discussed yesterday, Bearish outlook remained on the Nifty for most of the trading session. The Nifty opened flat and traded within a confined range of 20 points for most part of the trading session with a negative bias. However, in the last hour of trade, the Bulls staged a smart rally and took the Nifty swiftly past its resistance levels, to make a high of 5948 before closing at 5940 with a whopping gain of 42 points. Our trading plan (a) triggered. However, we jumped the gun too soon, and booked a loss of 48 points.

1) The Elder Ray readings : Bull Power rises from -25 to +11 Bear Power reduces from -58 to -54 indicating that though the Bulls have recovered a lot, they still need to do more today. For today, the Bulls need to overcome the levels of 5955 to retain their upwards momentum whereas the Bears need to breach the Nifty below 5875 to maintain their downwards momentum.

2) The Nifty has closed above its 8EMA and 13EMA. However, it has closed below its 21EMA(5952) and 200DMA(5961) which could be near term resistance.

3) The stochastics are just out of the oversold zone and are now pointing upwards.

 

4) In the above chart, the volumes have remained low with the rise in the Nifty indicating that the rise needs to be confirmed yet. The MACD is in the negative, but is seen rising, though it has not triggered a reversal yet. The ADX is suggesting equilibrium between the Bulls and the Bears. The Parabolic SAR continues with its sell signal with a SL of 5948.

5) Considering the above, our trading plan for the day is as under.

a) Around 5920 we will open fresh long positions with a SL of 5900 and a target of 5965. We will add to these long positions only above 5980.

b) Around 5970 we will open fresh short positions with a SL of 5980 and a target of 5925. We will add to these short positions only below 5900.

Happy Trading !!!   

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 20 Feb 2013 - Bulls stage a comeback

On a low volume day, Bulls stage a smart comeback. But need to do more now.

As discussed yesterday, Bearish outlook remained on the Nifty for most of the trading session. The Nifty opened flat and traded within a confined range of 20 points for most part of the trading session with a negative bias. However, in the last hour of trade, the Bulls staged a smart rally and took the Nifty swiftly past its resistance levels, to make a high of 5948 before closing at 5940 with a whopping gain of 42 points. Our trading plan (a) triggered. However, we jumped the gun too soon, and booked a loss of 48 points.

1) The Elder Ray readings : Bull Power rises from -25 to +11 Bear Power reduces from -58 to -54 indicating that though the Bulls have recovered a lot, they still need to do more today. For today, the Bulls need to overcome the levels of 5955 to retain their upwards momentum whereas the Bears need to breach the Nifty below 5875 to maintain their downwards momentum.

2) The Nifty has closed above its 8EMA and 13EMA. However, it has closed below its 21EMA(5952) and 200DMA(5961) which could be near term resistance.

3) The stochastics are just out of the oversold zone and are now pointing upwards.

Nifty - 19 Feb 2013 - Bearish outlook remains

Bulls try hard, but fail to conquer resistances, as the Bearish outlook persists.

As discussed yesterday, we expected the down move to continue. However, the Nifty after opening flat, made a low of 5878 and then consolidated in a narrow band of 25 points, making a high of 5911 before closing at 5989, with a net gain of 10 points. Our trading plan (a) got triggered and we were able to book 25 points profit on two lots traded.

1) The Elder Ray readings : Bull Power rises from -43 to -25 Bear Power reduces from -89 to -58 indicating that the Bulls have tried hard but have failed to garner enough momentum. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.

2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However it is above its 100DMA and 200DMA.

3) The stochastics continue to remain in the oversold zone.

 

4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may not be a prolonged one. The MACD continues to remain in the negative and does not reflect the rise in the Nifty. The ADX is still favoring the down move. The Parabolic SAR continues with its sell signal with a SL now at 5960.

5) Considering the above, our trading plan for the day is as under.

a) Around 5920 we will open fresh short positions with a SL of 5940 and a target of 5880. We will add to these short positions only below 5860.

b) Around 5870 we will open fresh long positions with a SL of 5860 and a target of 5900. We will add to these long positions only above 5940.

Happy Trading !!!   

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 19 Feb 2013 - Bearish outlook remains

Bulls try hard, but fail to conquer resistances, as the Bearish outlook persists.

As discussed yesterday, we expected the down move to continue. However, the Nifty after opening flat, made a low of 5878 and then consolidated in a narrow band of 25 points, making a high of 5911 before closing at 5989, with a net gain of 10 points. Our trading plan (a) got triggered and we were able to book 25 points profit on two lots traded.

1) The Elder Ray readings : Bull Power rises from -43 to -25 Bear Power reduces from -89 to -58 indicating that the Bulls have tried hard but have failed to garner enough momentum. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.

2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However it is above its 100DMA and 200DMA.

3) The stochastics continue to remain in the oversold zone.

Nifty - 18 Feb 2013 - Downtrend continues

Nifty continues to move down, even as Bulls fail in late attempt to recovery.

As discussed on Friday, the Bears continued to tighten the noose on the Nifty, and opened it with a down gap of 27 points and made a lower low at 5854. The Bulls attempt at a late hour recovery on the Nifty, fizzled out at 5900 and the Nifty closed at 5887 with a loss of 10 points. Our trading plan (b) which was aimed at this attempt to recovery, got triggered and hit its stop loss before the rise came in. We had to book a loss of 15 points.

1) The Elder Ray readings : Bull Power reduces from -12 to -43 Bear Power rises from -67 to -89 indicating that the Bears are now firmly in the driver's seat as the Nifty seems to be headed downwards. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds whereas the Bears need to breach the levels of 5840 on the Nifty to maintain their downwards momentum.

2) The Nifty continues to close below all its key EMAs and also below its 50DMA(5961). However it has closed above its 100DMA(5830) and also its 200DMA.

3) The stochastics continue to remain in the oversold zone.

 

4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the fall may get arrested soon. The MACD is again growing on the negative side. The ADX is suggesting a gain of momentum for the down move. The Parabolic SAR continues with its sell signal with a SL of 5978.

5) Considering the above, our trading plan for the day is as under.

a) Around 5915 we will open fresh short positions with a SL of 5930 and a target of 5870. We will add to these short positions only below 5845.

b) Around 5860 we will open fresh long positions with a SL of 5845 and a target of 5905. We will add to these long positions only above 5930.  

Happy Trading !!! 

Also visit Just Nifty and the Nifty Range blogs.


For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 18 Feb 2013 - Downtrend continues

Nifty continues to move down, even as Bulls fail in late attempt to recovery.

As discussed on Friday, the Bears continued to tighten the noose on the Nifty, and opened it with a down gap of 27 points and made a lower low at 5854. The Bulls attempt at a late hour recovery on the Nifty, fizzled out at 5900 and the Nifty closed at 5887 with a loss of 10 points. Our trading plan (b) which was aimed at this attempt to recovery, got triggered and hit its stop loss before the rise came in. We had to book a loss of 15 points.

1) The Elder Ray readings : Bull Power reduces from -12 to -43 Bear Power rises from -67 to -89 indicating that the Bears are now firmly in the driver's seat as the Nifty seems to be headed downwards. For today, the Bulls need to overcome the levels of 5930 to regain their lost grounds whereas the Bears need to breach the levels of 5840 on the Nifty to maintain their downwards momentum.

2) The Nifty continues to close below all its key EMAs and also below its 50DMA(5961). However it has closed above its 100DMA(5830) and also its 200DMA.

3) The stochastics continue to remain in the oversold zone.