Bulls fritter their advantage as the Bears stamp their authority. No respite in view.
In our yesterday's post, we had suggested "Bears take a breather". A day ago, we had also suggested "Short it. Forget it". The Nifty opened with a huge positive gap of 93 points at 5494, which was just near our infliction point of 5495. The Nifty then made a really quick high of 5504 and was threatening a breakout. However, some sustained selling at those levels, saw the Nifty pull down and then it was one way for the Bears. The Nifty kept on going down continuously, with a occasional pause of course, and went down to breach the weekly and monthly lows, and went down to 5268 before closing at 5303. We took three trades, all in the short direction, and could book a total profit of 253 points on those trades.
Summary : The trend on the Nifty is assertively down. However, the trading range has expanded exponentially, and a bullish backlash can come in anytime and from any level.
1) The Elder Ray readings : Bull Power rises from -188 to -58 Bear Power reduces mildly from -294 to -299 indicating that though the Bulls have recovered majorly, their safe zone is still out of bounds for them. For today, the Bulls need to overcome the levels of 5525 to regain their lost grounds whereas the Bears need to breach the levels of 5225 to maintain their downwards momentum.
2) The stochastics continue to remain in 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 increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to point downwards, the histogram continues to grow in the negative. The ADX is suggesting a fall in the Bearish momentum and a rise in the Bullish momentum. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5727.
5) Considering the above, our trading plan for the day is as under.
a) Around 5370 we will open fresh short positions with a SL of 5400 and a target of 5240. We will add to these short positions only below 5205.
b) Around 5225 we will open fresh long positions with a SL of 5205 and a target of 5360. We will add to these long positions only above 5400.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post, we had suggested "Bears take a breather". A day ago, we had also suggested "Short it. Forget it". The Nifty opened with a huge positive gap of 93 points at 5494, which was just near our infliction point of 5495. The Nifty then made a really quick high of 5504 and was threatening a breakout. However, some sustained selling at those levels, saw the Nifty pull down and then it was one way for the Bears. The Nifty kept on going down continuously, with a occasional pause of course, and went down to breach the weekly and monthly lows, and went down to 5268 before closing at 5303. We took three trades, all in the short direction, and could book a total profit of 253 points on those trades.
Summary : The trend on the Nifty is assertively down. However, the trading range has expanded exponentially, and a bullish backlash can come in anytime and from any level.
1) The Elder Ray readings : Bull Power rises from -188 to -58 Bear Power reduces mildly from -294 to -299 indicating that though the Bulls have recovered majorly, their safe zone is still out of bounds for them. For today, the Bulls need to overcome the levels of 5525 to regain their lost grounds whereas the Bears need to breach the levels of 5225 to maintain their downwards momentum.
2) The stochastics continue to remain in 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 increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to point downwards, the histogram continues to grow in the negative. The ADX is suggesting a fall in the Bearish momentum and a rise in the Bullish momentum. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5727.
5) Considering the above, our trading plan for the day is as under.
a) Around 5370 we will open fresh short positions with a SL of 5400 and a target of 5240. We will add to these short positions only below 5205.
b) Around 5225 we will open fresh long positions with a SL of 5205 and a target of 5360. We will add to these long positions only above 5400.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Sitting out quietly, watching nifty gyrate.
ReplyDeleteIn such markets you can lose 30 40 points easily by getting whipsawed, even if your direction is correct.
It is better to preserve capital as of now and wait for the right opportunity.
I agree with you
Deletesir
ReplyDeleteplz guide as if we can enter near levels mentioned in plan A
Opened fresh short position at 5365 with a SL of 5395 as per trading plan (a)
ReplyDeleteSL Hit. Booked loss of 30 points.
ReplyDeleteRe-opened fresh short position at 5385 with a SL of 5415 looking at the overbought stochastics in the 15 min, chart
ReplyDeleteI shorted nifty at 5405 with sl 5422
ReplyDeleteSeems to be a good trade. Keep it up
DeleteCarrying forward shorts for tomorrow.
ReplyDeleteNifty has entered into expiry zone and the expiry game is on seems like.
Booked profits around 5365 closed positions
ReplyDeleteGood trade. 40 points reward for a 17 point risk is really a good trade.
DeleteKeep it up.
Thank you, I check your posts and I appreciate your work and analysis. Before this trade I read your comments about market but some how I buyed Nifty at 5292 with SL of 5274 closed 50% at 5315 and rest 50% at 5365.
DeleteThanks for your work I appreciate...
Good work. Keep it up.
Delete