Nifty likely to get choppy as it prepares for expiry. Buy on dips. Sell on rise.As discussed yesterday, on the Nifty the undertone remained bearish. The Nifty opened with a positive up gap of 17 points at 5607 and traded bearishly for the first two hours and established a low of 5570. Then, the Bulls took over and the Nifty charged up to make a high of 5666. In the last two hours, however, the Nifty again got sold off and closed at 5609 with a gain of 19 points. We took a short trade, and that trade hit the SL and we booked a small loss of 23 points.1) The Elder Ray readings : Bull Power rises from -134 to -85 Bear Power reduces from -208 to -181 indicating that though the Bulls have shown some resolve to recover, they are still far away from their safe zone, while the Bears are sitting merrily enjoying their profits. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the Nifty below 5540 to maintain their downwards momentum.2) The stochastics remain in the oversold zone.3) The Nifty continues to close below all its key EMAs and also below all its key DMAs. 4) In the above chart, the volumes have increased with the Nifty remaining stagnant, indicating that the choppiness may increase. The MACD continues to point downwards in the negative zone. The ADX is suggesting a loss of momentum for the Bears but is still favoring them over the Bulls. The Parabolic SAR continues to give out its sell signal with a SL of 5830.5) Considering the above, our trading plan for the day is as under.a) Around 5660 we will open fresh short positions with a SL of 5680 and a target of 5580. We will add to these short positions only below 5540.b) Around 5560 we will open fresh long positions with a SL of 5540 and a target of 5610. We will add to these long positions only above 5680.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty likely to get choppy as it prepares for expiry. Buy on dips. Sell on rise.
As discussed yesterday, on the Nifty the undertone remained bearish. The Nifty opened with a positive up gap of 17 points at 5607 and traded bearishly for the first two hours and established a low of 5570. Then, the Bulls took over and the Nifty charged up to make a high of 5666. In the last two hours, however, the Nifty again got sold off and closed at 5609 with a gain of 19 points. We took a short trade, and that trade hit the SL and we booked a small loss of 23 points.
1) The Elder Ray readings : Bull Power rises from -134 to -85 Bear Power reduces from -208 to -181 indicating that though the Bulls have shown some resolve to recover, they are still far away from their safe zone, while the Bears are sitting merrily enjoying their profits. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the Nifty below 5540 to maintain their downwards momentum.
2) The stochastics remain in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
Although the Nifty remains under a bearish spell, key supports are approaching.As discussed yesterday, we saw choppiness with a downward bias on the Nifty all through the trading session. The Nifty opened with a negative gap down of 30 points at 5638 and then immediately got sold off to breach the 5600 level. It made a new low of 5566 before closing at 5590 with a loss of 78 points. We got two trades in, with a profit of 40 points in both trades put together.1) The Elder Ray readings : Bull Power reduces from -119 to -134 Bear Power rises from -188 to -208 indicating the strong control that the Bears are having on the Nifty. For today, the Bulls need to overcome the levels of 5745 to regain their lost grounds whereas the Bears need to breach the Nifty below 5535 to maintain their downwards momentum.2) The stochastics are well and deep into the oversold zone and are still pointing downwards.3) The Nifty continues to close below all its key EMAs and also below all its key DMAs. 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 continues to point downwards and is deep in the negative with the histogram also growing in the negative. The ADX is suggesting a strong favor to the Bears. The Parabolic SAR continues with its sell signal with the SL now at 5847.5) Considering the above, our trading plan for the day is as under.a) Around 5635 we will open fresh short positions with a SL of 5660 and a target of 5550. We will add to these short positions only below 5520.b) Around 5545 we will open fresh long positions with a SL of 5520 and a target of 5600. We will add to these long positions only above 5660.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Although the Nifty remains under a bearish spell, key supports are approaching.
As discussed yesterday, we saw choppiness with a downward bias on the Nifty all through the trading session. The Nifty opened with a negative gap down of 30 points at 5638 and then immediately got sold off to breach the 5600 level. It made a new low of 5566 before closing at 5590 with a loss of 78 points. We got two trades in, with a profit of 40 points in both trades put together.
1) The Elder Ray readings : Bull Power reduces from -119 to -134 Bear Power rises from -188 to -208 indicating the strong control that the Bears are having on the Nifty. For today, the Bulls need to overcome the levels of 5745 to regain their lost grounds whereas the Bears need to breach the Nifty below 5535 to maintain their downwards momentum.
2) The stochastics are well and deep into the oversold zone and are still pointing downwards.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
Nifty attempted a pullback and failed at first resistance. Choppy markets expected.In our Friday's post, "Bulls get mauled", we were expecting a red Friday, and were waiting for the Nifty to breach 5600 levels. However, that was not to be. The Nifty opened with a bearish undertone at 5640, went down to 5617, pulled back up to 5686 before closing at 5668 with a minor gain of 12 points. We sat at the sidelines watching the gyrations of the Nifty.1) The Elder Ray readings : Bull Power reduces from -73 to -119 Bear Power rises from -182 to -188 indicating that though the attempted pullback and a positive closing, the Bulls are at the losing end of the sentiment. For today, the Bulls need to overcome the levels of 5790 to regain their lost grounds, whereas the Bears need to breach the levels of 5595 to retain their downwards momentum.2) The stochastics are in the oversold zone, confirming the bearish undertone.3) The Nifty continues to close below all its key EMAs and also below all its key DMAs. 4) In the above chart, the volumes have increased with the small rise in the Nifty indicating that there could be choppiness in the markets now. The MACD is pointing down in the negative zone with the histogram also growing in the negative zone. The ADX is suggesting a strong favor for the Bears. The Parabolic SAR continues with its sell signal with the SL now at 5858.5) Considering the above, our trading plan for the day is as under.a) Around 5690 we will open fresh short positions with a SL of 5715 and a target of 5625. We will add to these short positions only below 5600.b) Around 5620 we will open fresh long positions with a SL of 5600 and a target of 5665. We will add to these long positions only above 5715.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty attempted a pullback and failed at first resistance. Choppy markets expected.
In our Friday's post, "Bulls get mauled", we were expecting a red Friday, and were waiting for the Nifty to breach 5600 levels. However, that was not to be. The Nifty opened with a bearish undertone at 5640, went down to 5617, pulled back up to 5686 before closing at 5668 with a minor gain of 12 points. We sat at the sidelines watching the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power reduces from -73 to -119 Bear Power rises from -182 to -188 indicating that though the attempted pullback and a positive closing, the Bulls are at the losing end of the sentiment. For today, the Bulls need to overcome the levels of 5790 to regain their lost grounds, whereas the Bears need to breach the levels of 5595 to retain their downwards momentum.
2) The stochastics are in the oversold zone, confirming the bearish undertone.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
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