Bulls in control now
The Nifty managed to hold on to its gains and closed at a healthy gain of 61 points at 5124. Much of it could be attributed to the gap up opening. Yes, Bulls managed to open with a gap up and were also able to hold on to their gains. Bears tried at the end of the session but could not follow it up.
1) This is clearly evident from the Elder Ray readings where Bull Power has risen from +74 to +137 and the Bear Power has fallen from -56 to +59 (Remember Bear Power has to be in the negative).
2) The ATR is gradually decreasing and this again favours the Bulls.
3) However, the Simple Daily Moving averages are still falling and the Bulls still have a lot to do before we can hand over the winner to the bulls. Yesterday, Nifty faced a stiff resistance at 5154 the 30DMA and then there is 5170 the recent two double bottoms.
4) In the above chart, Nifty is above the center of the Bollinger Bands and the volumes are at their highs. MACD is showing a upmove which is also supported by the ADX.
5) Also to be noted is that the Nifty future is still trading at a hefty discount.
6) Our view is that if the Nifty can sustain the bear onslaught between 5154 and 5180 then it will reach 5230 where again the bears will attack. Once 5230 is cleared, 5320 will be the next level to watch out for. But 5170 still remains a major hurdle to be crossed.
Nifty Strategies for the day :
Buy above 5170 with a SL of 5140 and a target of 5230
Sell below 5076 with a SL of 5100 and a target of 5000
Observe 5080 5170 as a NO TRADING ZONE
Happy Trading.
The Nifty managed to hold on to its gains and closed at a healthy gain of 61 points at 5124. Much of it could be attributed to the gap up opening. Yes, Bulls managed to open with a gap up and were also able to hold on to their gains. Bears tried at the end of the session but could not follow it up.
1) This is clearly evident from the Elder Ray readings where Bull Power has risen from +74 to +137 and the Bear Power has fallen from -56 to +59 (Remember Bear Power has to be in the negative).
2) The ATR is gradually decreasing and this again favours the Bulls.
3) However, the Simple Daily Moving averages are still falling and the Bulls still have a lot to do before we can hand over the winner to the bulls. Yesterday, Nifty faced a stiff resistance at 5154 the 30DMA and then there is 5170 the recent two double bottoms.
4) In the above chart, Nifty is above the center of the Bollinger Bands and the volumes are at their highs. MACD is showing a upmove which is also supported by the ADX.
5) Also to be noted is that the Nifty future is still trading at a hefty discount.
6) Our view is that if the Nifty can sustain the bear onslaught between 5154 and 5180 then it will reach 5230 where again the bears will attack. Once 5230 is cleared, 5320 will be the next level to watch out for. But 5170 still remains a major hurdle to be crossed.
Nifty Strategies for the day :
Buy above 5170 with a SL of 5140 and a target of 5230
Sell below 5076 with a SL of 5100 and a target of 5000
Observe 5080 5170 as a NO TRADING ZONE
Happy Trading.
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