Nifty continues to drop down as Bears go on rampage. Key supports approaching.As discussed yesterday, volatile times continued on the Nifty. The Nifty opened with a gap down of 17 points and immediately started selling off, albeit slowly in the morning hour, and then galloping downwards, breaching supports after supports, to make a low of 5749 before closing at 5761 with a whopping loss of 93 points. Our trading plan(b) triggered right in the morning, but hit the SL and we lost 13 points on that trade. Post that, we were out of the market attending prior commitments.1) The Elder Ray readings : Bull Power reduces from -28 to -47 Bear Power rises from -81 to -137 indicating that the Bears have now got too strong a momentum, and may weaken a bit in days to come. For today, the Bulls need to overcome the levels of 5870 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5725 to maintain their downwards momentum.2) The Nifty has now closed below all its key EMAs, its 50DMA and its 100DMA. However, it is still above its 200DMA.3) The stochastics are well and deep into the oversold zone.4) In the above chart, the volumes have remained stagnant with the fall in the Nifty, indicating that selling pressure is about to peak out. The MACD continues to grow on the negative side. The ADX is suggesting a overall rise in the bearish momentum. The Parabolic SAR continues with its sell signal, with the SL now pegged at 5950.5) Considering the above, our trading plan for the day is as under.a) Around 5795 we will open fresh short positions with a SL of 5815 and a target of 5740. We will add to these short positions only below 5710.b) Around 5725 we will open fresh long positions with a SL of 5710 and a target of 5785. We will add to these long positions only above 5815.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty continues to drop down as Bears go on rampage. Key supports approaching.
As discussed yesterday, volatile times continued on the Nifty. The Nifty opened with a gap down of 17 points and immediately started selling off, albeit slowly in the morning hour, and then galloping downwards, breaching supports after supports, to make a low of 5749 before closing at 5761 with a whopping loss of 93 points. Our trading plan(b) triggered right in the morning, but hit the SL and we lost 13 points on that trade. Post that, we were out of the market attending prior commitments.
1) The Elder Ray readings : Bull Power reduces from -28 to -47 Bear Power rises from -81 to -137 indicating that the Bears have now got too strong a momentum, and may weaken a bit in days to come. For today, the Bulls need to overcome the levels of 5870 to regain their lost grounds, whereas the Bears need to breach the Nifty below 5725 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs, its 50DMA and its 100DMA. However, it is still above its 200DMA.
3) The stochastics are well and deep into the oversold zone.
Bears breach lows, then Bulls overcome highs, Nifty range & volatility expands.As discussed yesterday, it does seem to be a volatile week ahead of us now. The Nifty opened with a positive gap of 20 points, but right into the resistance zone suggested by us, and immediately got sold off. During the entire trading session, the Nifty breached the previous day's highs and the previous day's lows twice, highlighting the underlying volatility in trade. Finally, the Nifty, after making a high of 5878 and a low of 5825, closed at 5855, with a gain of 4 points. We had 3 trades during the day, two out of which were profitable, while one hit the SL. At the end of the day, we could book a profit of 51 points.1) The Elder Ray readings : Bull Power rises from -41 to -28 Bear Power also rises from -79 to -81 indicating that both the Bulls and Bears are putting in their effort, and thereby increasing the volatility on the Nifty. For today, the Bulls need to overcome the levels of 5895 on the Nifty to regain their lost grounds, whereas the Bears need to breach the levels of 5810 to maintain their downwards momentum.2) The Nifty continues to close below all its key EMAs and also below its 50DMA. However, it also continues to close above its 100DMA and its 200DMA.3) The stochastics are back in the oversold zone, confirming the bearish sentiments on the Nifty. 4) In the above chart, the volumes have decreased with the stagnation in the Nifty, indicating caution amongst the larger trading community. The MACD continues to be in the negative and is growing lower. The ADX is suggesting a loss of overall momentum, but is still favoring the Bears. The Parabolic SAR continues with its sell signal with a SL now of 5963.5) Considering the above, our trading plan for the day is as under.a) Around 5885, we will open fresh short positions with a SL of 5905 and a target of 5835. We will add to these short positions only below 5810.b) Around 5825, we will open fresh long positions with a SL of 5810 and a target of 5865. We will add to these long positions only above 5905.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Bears breach lows, then Bulls overcome highs, Nifty range & volatility expands.
As discussed yesterday, it does seem to be a volatile week ahead of us now. The Nifty opened with a positive gap of 20 points, but right into the resistance zone suggested by us, and immediately got sold off. During the entire trading session, the Nifty breached the previous day's highs and the previous day's lows twice, highlighting the underlying volatility in trade. Finally, the Nifty, after making a high of 5878 and a low of 5825, closed at 5855, with a gain of 4 points. We had 3 trades during the day, two out of which were profitable, while one hit the SL. At the end of the day, we could book a profit of 51 points.
1) The Elder Ray readings : Bull Power rises from -41 to -28 Bear Power also rises from -79 to -81 indicating that both the Bulls and Bears are putting in their effort, and thereby increasing the volatility on the Nifty. For today, the Bulls need to overcome the levels of 5895 on the Nifty to regain their lost grounds, whereas the Bears need to breach the levels of 5810 to maintain their downwards momentum.
2) The Nifty continues to close below all its key EMAs and also below its 50DMA. However, it also continues to close above its 100DMA and its 200DMA.
3) The stochastics are back in the oversold zone, confirming the bearish sentiments on the Nifty.
Bulls look weak in a eventful week ahead. Sell on rise will be the mantra for trade.As discussed on Friday, Bears reclaimed their losses, as the Nifty opened with a negative gap of 14 points. The Nifty thereafter, traded within a narrow range of 40 points or so, making a high of 5874 and a low of 5836, before ending the day at 5850 with a minor loss of 2 points. The forthcoming week, being an eventful one, we expect a rise in the volatility on the Nifty. On Friday, during the last volatile hour, we could book a profit of 32 points on two lots traded in the short direction.1) The Elder Ray readings : Bull Power reduces from -4 to -41 Bear Power also reduces mildly from -81 to -79 indicating that the Bears have rested for now as the Bulls have lost further strength. For today, the Bulls need to overcome the levels of 5905 to regain their lost grounds whereas the Bears need to breach the levels of 5825 to maintain their downwards momentum.2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However, it has closed above its 100DMA(5842) and its 200DMA.3) The fast stochastics are in the oversold zone and are looking up, whereas the slow stochastics are just above the oversold zone and are pointing downwards. 4) In the above chart, the volumes have decreased with the Nifty being stagnant, indicating that the market is in wait and watch mode. The MACD continues to grow on the negative side. The ADX is suggesting a favor towards the down move. The Parabolic SAR maintains its sell signal with a SL at 5968.5) Considering the above, our trading plan for the day is as under.a) Around 5875 we will open fresh short positions with a SL of 5895 and a target of 5830. We will add to these short positions only below 5805.b) Around 5815 we will open fresh long positions with a SL of 5805 and a target of 5855. We will add to these long positions only above 5895.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Bulls look weak in a eventful week ahead. Sell on rise will be the mantra for trade.
As discussed on Friday, Bears reclaimed their losses, as the Nifty opened with a negative gap of 14 points. The Nifty thereafter, traded within a narrow range of 40 points or so, making a high of 5874 and a low of 5836, before ending the day at 5850 with a minor loss of 2 points. The forthcoming week, being an eventful one, we expect a rise in the volatility on the Nifty. On Friday, during the last volatile hour, we could book a profit of 32 points on two lots traded in the short direction.
1) The Elder Ray readings : Bull Power reduces from -4 to -41 Bear Power also reduces mildly from -81 to -79 indicating that the Bears have rested for now as the Bulls have lost further strength. For today, the Bulls need to overcome the levels of 5905 to regain their lost grounds whereas the Bears need to breach the levels of 5825 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However, it has closed above its 100DMA(5842) and its 200DMA.
3) The fast stochastics are in the oversold zone and are looking up, whereas the slow stochastics are just above the oversold zone and are pointing downwards.
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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.
