Nifty forms a NR7 day, idling between supports & resistances. Big move soon.
As discussed yesterday, the Nifty had passed its test of supports and now is hovering bullishly but not able to surmount the resistances and the falling trendline. The Nifty in doing so, has formed a NR7 day yesterday and a big move on the either side may be expected soon. The critical levels to watch out for during the next couple of trading sessions would be 6250 and 6350 on either side.
1) The Elder Ray readings : Bull Power rises from +50 to +65 Bear Power reduces from -14 to +32 indicating that the Bears have lost their grounds within two days of recovering it. For today, the Bulls need to overcome the levels of 6345 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6270 to regain their lost grounds.
2) The stochastics keep on hovering just below the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Nifty tests supports and rises above 6300, just to test resistances yet again.
As discussed yesterday, the Nifty had returned back to neutral territory. However, the Bears were unable to breach the near term support zone and the Bulls then took over and crossed the psychological level of 6300. The Bulls, though were unable to cross the previous day's highs, after the Bears had breached the previous day's lows, albeit by just 3 points. The Nifty therefore stays within striking distance for both the parties. We took a trade on the short side as per our trading plan and could book a small profit of 15 points.
1) The Elder Ray readings : Bull Power reduces from +77 to +50 Bear Power rises from -3 to -14 indicating that despite the rise in the Nifty, the Bears have gained some further grounds. For today, the Bulls need to overcome the levels of 6320 to maintain their upwards momentum whereas the Bears need to breach the levels of 6250 to maintain their downwards momentum.
2) The stochastics are just below the overbought zone and are pointing across each other.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
After failing to rise above near term resistances, Nifty returns back to support levels.
As discussed on Friday, the Nifty which had retained its bullish stance, pulled back about 6o points yet remained in the Bullish zone. The Nifty opened with a 13 point negative gap down at 6306 and made a high of 6327 in the first hour itself. The Nifty failed to reach our identified resistance zone of 6355 on Friday, and just after the first hour, the sell off started gradually, and the Nifty made a new low by the hour. During this fall, our trading plan of going long triggered, and we could make a small profit of 13 points.
1) The Elder Ray readings : Bull Power reduces from +99 To +77 Bear Power rises from +52 to -3 indicating that the Bulls have given up a little, but the Bears have regained their lost grounds. For today, the Bulls need to overcome the levels of 6335 to maintain their upwards momentum whereas the Bears need to breach the levels of 6245 to maintain their downwards momentum.
2) The stochastics barely touched the overbought zone and are now pointing downwards.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Nifty consolidates after a huge up move & stays bullish but cautious at higher levels.
In our yesterday's post "Poised for a breakout", we had mentioned that the Bulls need to do more to keep the Bears at bay. The Bulls did a smart job by maintaining the Nifty well above the support zone around 6280 for the entire trading session. The Nifty opened with a 20 point positive gap up at 6341 and made a quick high of 6347 and then consolidated for the entire trading session, making a low of 6300 before closing at 6319 with a nett loss of just 1 point. None of our trading plans got triggered and we took to the sidelines for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +99 Bear Power reduces from +29 to +52 indicating that the Bulls are gaining power whereas the Bears are slipping gradually. For today, the Bulls need to surpass the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 in order to regain their lost grounds.
2) The stochastics are almost touching the overbought zone.
3) The Nifty continues to close above all its key EMAs as well as above all its key DMAs.
Bulls take the Nifty past resistances, but need to do more to keep the Bears at Bay.
After a two day off for kite flying, we are back. The Nifty, with a widening trading range, is now poised for a break out yet again. This is the fourth attempt since Nov 2013, for the Nifty to break out. The trend has not yet fully resolved, with the EMAs still in a tight range of just 12 points. If the Bears do not come in within the next couple of days, this EMA squeeze will get resolved on the up side and the Bull trend might get confirmed.
1) The Elder Ray readings : Bull Power rises from +58 to +89 Bear Power reduces from +12 to +29 indicating that the Bulls have taken the charge, but the Bears are not far off as yet. For today the Bulls need to overcome the levels of 6340 to maintain their upwards momentum whereas the Bears need to breach the levels of 6235 to regain their lost grounds.
2) The fast stochastics are already in the overbought zone, with the slow stochastics following a little below the overbought zone.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
Nifty stays put while the trading range widens. Bearishness stays technically.
As discussed on Friday, the Bearish Laziness continued on the Nifty. The Nifty opened with a positive gap of 11 points at 6179 and then traded bearishly in the first hour of trade hitting a low of 6140 (exactly at our identified point of support) and then soared to to establish newer intraday highs for the next 4 hours of trade. However, after reaching a high of 6239, the Nifty got sold off in the last couple of hours of trade and closed with a gain of just 3 points at 6171. We took 4 trades and could book a nett profit of 89 points in those. One of the trades hit its SL.
1) The Elder Ray readings : Bull Power rises from -28 to +30 Bear Power also rises from -68 to -70 indicating that the Nifty has now reached a equilibrium stage. For today, the Bulls need to overcome the levels of 6235 to maintain their upwards momentum whereas the Bears need to breach the levels of 6135 to maintain their downwards momentum.
2) The stochastics are now well and deep into the oversold zone.
3) The Nifty continues to close below all its key EMAs and its 50DMA, but above its 100DMA and 200DMA.
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