Expect a volatile session today
As suggested yesterday, the Nifty started on a bearish note and remained bearish for most of the morning session, hitting a low of around 4933. We have since covered our short position initiated at 5015 at the levels of 4950 booking a profit of 65 points.
Post the afternoon session, bears gave away the advantage and the bulls took over and never gave back their advantage for the rest of the session, managing to close the Nifty well above 5050 at 5064.
Our reading for the day ahead for 07 Sept 2011 as under
1) Nifty might find a resistance at 5110 5120 levels
2) The BullPower of the Elder Ray has increased from 42 to 74. The BearPower has also increased from -24 to -56 indicating a highly volatile session ahead with both waiting for opportunities and striking with full power.
3) The stochastics signal Nifty just entering a overbought zone.
4) In the above chart, Nifty is poised right at the center of the Bollinger Bands indicating either ways movement. The ADX is falling and MACD is showing a upmove, indicating a bullish bias.
Overall, the session ahead calls for a great amount of patience and caution. Patience, for waiting for the opportunities to enter and also for a favourable exit. Certainly, not for people who cannot see virtual losses and wait for profits. Stay in cash as far as possible would be our advise to such traders.
You can start longs around 5010 with a SL of 4980 and target of 5065. On the other hand, you may also start short positions at around 5110 with a SL of 5140 and a target of 5045.
It could be a rewarding session for both bulls and bears. Pigs will get slaughtered, so don't be a pig. Happy trading !!!
As suggested yesterday, the Nifty started on a bearish note and remained bearish for most of the morning session, hitting a low of around 4933. We have since covered our short position initiated at 5015 at the levels of 4950 booking a profit of 65 points.
Post the afternoon session, bears gave away the advantage and the bulls took over and never gave back their advantage for the rest of the session, managing to close the Nifty well above 5050 at 5064.
Our reading for the day ahead for 07 Sept 2011 as under
1) Nifty might find a resistance at 5110 5120 levels
2) The BullPower of the Elder Ray has increased from 42 to 74. The BearPower has also increased from -24 to -56 indicating a highly volatile session ahead with both waiting for opportunities and striking with full power.
3) The stochastics signal Nifty just entering a overbought zone.
4) In the above chart, Nifty is poised right at the center of the Bollinger Bands indicating either ways movement. The ADX is falling and MACD is showing a upmove, indicating a bullish bias.
Overall, the session ahead calls for a great amount of patience and caution. Patience, for waiting for the opportunities to enter and also for a favourable exit. Certainly, not for people who cannot see virtual losses and wait for profits. Stay in cash as far as possible would be our advise to such traders.
You can start longs around 5010 with a SL of 4980 and target of 5065. On the other hand, you may also start short positions at around 5110 with a SL of 5140 and a target of 5045.
It could be a rewarding session for both bulls and bears. Pigs will get slaughtered, so don't be a pig. Happy trading !!!
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