Bears still driving the markets, despite a positive close yesterday. As discussed yesterday, the expiry jitters were felt throughout the trading session, before the Nifty recovered due to some short covering in the late trade, to close in the positive zone. Given the global cues today, the Nifty is likely to open with a negative bias. Technical indications show that the Bears still hold their grip on the markets, and the trend is unlikely to reverse in a hurry.1) The Elder Ray readings : Bull Power rises from -194 to -171. Bear Power reduces from -332 to -303. This shows that Bears have given away some ground after a long haul, however, the Bulls have not been able to take full advantage of the opportunity.2) The EMAs continue to point downwards, so are the DMAs too. The EMAs are tending to define the Nifty trading range between 4610 and 4870, which could be quite decisive during the December 11 series.3) The stochastics are still in the oversold zone, and a bounce back cannot be ruled out here.4) In the above chart, Nifty is just about leaving the lower Bollinger Band, which is suggestive of a bounce back. The MACD is also supportive of a bounce back. The ADX is showing loss of momentum in the downtrend. However, the vital strengthening of the uptrend is missing. This suggests that any bounce back will be short-lived and weak.5) Given the above indications, our trading plan for the day is as under,a) Around 4770, we will open fresh short positions with a SL of 4795 and a target of 4680. We will add to these short positions only below 4640.b) Around 4670, we will open fresh long positions with a SL of 4645 and a target of 4750. We will add to these long positions only above 4800. Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Bears still driving the markets, despite a positive close yesterday.
As discussed yesterday, the expiry jitters were felt throughout the trading session, before the Nifty recovered due to some short covering in the late trade, to close in the positive zone. Given the global cues today, the Nifty is likely to open with a negative bias. Technical indications show that the Bears still hold their grip on the markets, and the trend is unlikely to reverse in a hurry.
1) The Elder Ray readings : Bull Power rises from -194 to -171. Bear Power reduces from -332 to -303. This shows that Bears have given away some ground after a long haul, however, the Bulls have not been able to take full advantage of the opportunity.
2) The EMAs continue to point downwards, so are the DMAs too. The EMAs are tending to define the Nifty trading range between 4610 and 4870, which could be quite decisive during the December 11 series.
3) The stochastics are still in the oversold zone, and a bounce back cannot be ruled out here.
4) In the above chart, Nifty is just about leaving the lower Bollinger Band, which is suggestive of a bounce back. The MACD is also supportive of a bounce back. The ADX is showing loss of momentum in the downtrend. However, the vital strengthening of the uptrend is missing. This suggests that any bounce back will be short-lived and weak.
5) Given the above indications, our trading plan for the day is as under,
a) Around 4770, we will open fresh short positions with a SL of 4795 and a target of 4680. We will add to these short positions only below 4640.
b) Around 4670, we will open fresh long positions with a SL of 4645 and a target of 4750. We will add to these long positions only above 4800.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty downtrend to continue for a while.As discussed in our posts off late, the downtrend on the Nifty continues unabated. However, given that today is expiry day for the current series, the Nifty might be volatile. Also to be noted, is that the technicals are showing no signs of the downtrend losing its steam as yet.1) The Elder Ray readings : Bull Power reduces from -164 to -194. Bear Power rises from -235 to -332. This indicates that the Bulls are out of breath now and that the Bears have really gained a strong grip on the market.2) The EMAs are pointing downwards and are now stacked against the Bulls.3) The stochastics are deep in the oversold zone, and a small bounce back cannot be ruled out.4) In the above chart, the Bollinger Bands are indicating that the downtrend may slowdown from hereon, and the Nifty could stabilize in a narrow range. The ADX is showing a strengthening of the downtrend and is supported by the MACD. However, the fast MACD has just entered the oversold zone.5) Today being expiry day for the current series, our trading plan is comprised entirely to trade options, instead of futures.a) Around 4740, we will buy 4700 put and wait till the last half an hour of trade.b) Around 4620, we will sell 4500 put and wait till the last half an hour of trade.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty downtrend to continue for a while.
As discussed in our posts off late, the downtrend on the Nifty continues unabated. However, given that today is expiry day for the current series, the Nifty might be volatile. Also to be noted, is that the technicals are showing no signs of the downtrend losing its steam as yet.
1) The Elder Ray readings : Bull Power reduces from -164 to -194. Bear Power rises from -235 to -332. This indicates that the Bulls are out of breath now and that the Bears have really gained a strong grip on the market.
2) The EMAs are pointing downwards and are now stacked against the Bulls.
3) The stochastics are deep in the oversold zone, and a small bounce back cannot be ruled out.
4) In the above chart, the Bollinger Bands are indicating that the downtrend may slowdown from hereon, and the Nifty could stabilize in a narrow range. The ADX is showing a strengthening of the downtrend and is supported by the MACD. However, the fast MACD has just entered the oversold zone.
5) Today being expiry day for the current series, our trading plan is comprised entirely to trade options, instead of futures.
a) Around 4740, we will buy 4700 put and wait till the last half an hour of trade.
b) Around 4620, we will sell 4500 put and wait till the last half an hour of trade.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to remain volatile with a downward bias Due to a family marriage, we will not be trading for the day, and hence, we will not be presenting our trading plan for the day.However, our view of downward bias continues.For the day, the Nifty has a support at 4720 and a resistance at 4835.We will be back on the terminals tomorrow onwards. For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to remain volatile with a downward bias
Due to a family marriage, we will not be trading for the day, and hence, we will not be presenting our trading plan for the day.
However, our view of downward bias continues.
For the day, the Nifty has a support at 4720 and a resistance at 4835.
We will be back on the terminals tomorrow onwards.
For cash market recommendations see our Daily Pre Market calls on NSE
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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.
