Nifty - 19 Nov 2013 - Bulls need to follow up

After 2 days of rise, Bulls must show some follow up buying. Gaps need to sustain.

As discussed yesterday, we got a Bullish start to a fresh week. Riding on positive global cues and after a long weekend, the Nifty opened with a positive gap up of 55 points at 6111 and immediately crossed 6150. The Nifty then traded in a narrow range of 6165 and 6140 for most of the trading session. However, in the last hour of trade, the Nifty raged up to 6197 before closing at 6189 with a gain of 133 points. As intraday traders, we did not get any opportunity to Buy the Nifty in the morning hour and there was no trade available on the short side either. So, we watched the Nifty and sat outside on the fence.

1) The Elder Ray readings : Bull Power rises from -20 to +65 Bear Power reduces from -85 to -21 indicating that both the Bulls and the Bears are now in their respective zones and some fireworks can be expected. For today, the Bulls need to overcome the levels of 6210 to maintain their upwards momentum whereas the Bears need to breach the levels of 6140 to maintain their downwards momentum. 

2) The stochastics are in the neutral zone and are pointing upwards.

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

Nifty - 18 Nov 2013 - Bullish start of a fresh week

Owing to global cues, the Nifty to start on a Bullish note after a long weekend.

In our last post, which now seems to be long ago, owing to this long weekend, we had said that "Bears tighten the noose". However, the Nifty opened at 6037 with a whopping 47 points positive up gap and then never really broke that opening mark. The Nifty then ventured near the two days high of 6109, but did not cross it. The Nifty made a high of 6102 before closing at 6056 with a gain of 67 points. We had to alter our trading plan on the trot and took a trade in the short direction, which yielded us a profit of 35 points.

1) The Elder Ray readings : Bull Power rises from -91 to -20 Bear Power reduces from -160 to -85 indicating that the Bulls are on the verge of making a comeback, however the Bears cannot be written off as yet. For today, the Bulls need to overcome the levels of 6115 to regain their lost grounds whereas the Bears need to breach the levels of 6025 to maintain their downwards momentum.

2) The stochastics are in the oversold zone and are pointing upwards.

3) The Nifty has closed below its key EMAs but has closed above all its key DMAs.

Nifty - 14 Nov 2013 - Bears tighten the noose

Nifty gets bearish pounding for 8 straight sessions. Sell on Rise, and then Sell at will.

In our yesterday's post, we were expecting some green on the screen as Nifty was nearing intermediate supports. The Nifty opened with a 19 point negative gap down at 5999 and immediately ventured into the green making a intermediate high of 6032 during the initial hours of trade. The Nifty then hovered in a 25 point range between 6030 and 6005 for the next two hours of trade. We immediately saw a trading opportunity then, and posted a comment that the Nifty was moving in a expanding triangle and the next higher top would present a handsome shorting opportunity. As such, the Nifty made a higher high at 6042 and then slipped off to not only break the day's opening mark and the intraday low, but to make a new low at 5972 before closing at 5990. We took a short trade at 5940 and booked out at EOD with a profit of 55 points on that trade.

1) The Elder Ray readings : Bull Power reduces from -48 to -91 Bear Power rises from -145 to -160 indicating that the Bears are tightening their vice like grip on the Nifty, and that the Bulls have made their own task that much harder. For today, the Bulls need to overcome the levels of 6105 to regain their lost grounds whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.

2) The stochastics are well and deep into the oversold zone.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.

Nifty - 13 Nov 2013 - Nearing intermediate supports

After 7 consecutive red candles, there may be some green on the screen expected.

In our yesterday's post we had said "Down move may accelerate", and the markets obliged us. The Nifty opened with a minor positive gap up of 8 points at 6087 and made a quick high of 6109 (which was the trigger of our trading plan a) and then came the sell off and the Nifty accelerated its downfall in the last hour of trade. The Nifty made a low of 6012 before closing at 6018 with a loss of 61 points. Our trade taken in the short direction, yielded us a profit of 71 points as our trading plan(a) hit its target of 6035.

1) The Elder Ray readings : Bull Power reduces from -38 to -48 Bear Power rises from -112 to -145 indicating that the Bears are now firmly in the driver's seat. For today, the Bulls need to overcome the levels of 6130 to regain their lost grounds whereas the Bears need to breach the levels of 5985 to maintain their downwards momentum.

2) The stochastics are deep into the oversold zone now.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.

Nifty - 12 Nov 2013 - Downmove may accelerate

After 6 consecutive down days, Nifty may look to consolidate. Sell on Rise continues.
As discussed yesterday, we saw the Nifty get a Weekly start on a weak note. The Nifty opened with a 30 point gap down at 6110 and then traded bearishly for most of the trading session. One rise on the Nifty by the Bulls, saw the Nifty close the gap and make a high of 6142, but that one got fizzled out by the end of the day, with the Nifty making a low of 6068 and closing at 6079 with a loss of 62 points. During this down move, the Bears have allowed the Bulls to touch the Nifty in the green on each trading day and then they have punished the Nifty and closed it near the day's lows.

1) The Elder Ray readings : Bull Power reduces from -11 to -38 Bear Power rises from -76 to -112 indicating that the Bears are now driving the Nifty and that the Bulls need to rise to the occasion soon, else be left out. For today, the Bulls need to overcome the levels of 6165 to regain their lost grounds whereas the Bears need to breach the levels of 6050 to maintain their downwards momentum.

2) The stochastics are pointing downwards but are fast approaching the oversold zone.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.

Nifty - 11 Nov 2013 - Weekly start on a weak note.

Start of a fresh week, sees Nifty in a Sell on Rise mode. Look out for resistances.

As discussed on Friday, the Nifty continued its journey heading southwards. The Nifty opened with a negative gap down of 17 points and barely made that up when it made a day high of 6186 before dipping down again to make a low of 6121 after which the Nifty closed at 6141 with a loss of 47 points. Our trading plan for going long at near 6120 almost triggered but it was at the fag end of the trading session and we did not take that trade.

1) The Elder Ray readings : Bull Power reduces from +83 to -11 Bear Power rises from -25 to -76 indicating that the Bears are now in the driving seat and that the Bulls need to get into their safe zone as their first priority. For today, the Bulls need to overcome the levels of 6185 to regain their lost grounds, whereas the Bears need to breach the levels of 6105 to maintain their downwards momentum.

2) The stochastics are still in the neutral zone and are still pointing downwards.

3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.