The range bound Nifty whipsaw continues
As discussed in yesterday's post, the Nifty has whipsawed in the range of 4900 and 5050. With positive global cues, today's opening is likely to be positive.
1) The fresh Elder Ray readings : Bull Power has actually reduced from +15 to +12 as also the Bear Power has reduced from -103 to -96 suggesting that both Bulls and Bears have shown exhaustion at their respective range boundaries. Bulls near 5050 and Bears near 4900 have not been able to carry on with follow-up.
2) The moving averages continue to fall, suggesting we are still in a longer term falling trend.
3) The NH-NL is still in the negative.
4) In the above chart, the MACD histogram is showing a upward move, the Bollinger Bands are squeezing suggesting range-bound action, so also is the ADX.
5) Considering the above, 5060 will remain a challenge for the Bulls for today, but if they are able to sustain over that level, then we can see 5120 5150 levels where again heavy selling can be expected. Below 4980 however, we may see Bears in action again trying for 4940 4900.
6) For today, our trading plan is as under.
a) Open fresh shorts at around 5060 with a SL of 5080 and a target of 4980. Below 4980 we will add to our short positions with a target of 4940 4910. Above 5080 we will be long till 5150.
b) Open fresh longs at 5010 with a SL of 4990 and a target of 5060. Above 5080 we will add we will add to our long positions. Below 4980 we will be short till 4910.
Happy Trading.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in yesterday's post, the Nifty has whipsawed in the range of 4900 and 5050. With positive global cues, today's opening is likely to be positive.
1) The fresh Elder Ray readings : Bull Power has actually reduced from +15 to +12 as also the Bear Power has reduced from -103 to -96 suggesting that both Bulls and Bears have shown exhaustion at their respective range boundaries. Bulls near 5050 and Bears near 4900 have not been able to carry on with follow-up.
2) The moving averages continue to fall, suggesting we are still in a longer term falling trend.
3) The NH-NL is still in the negative.
4) In the above chart, the MACD histogram is showing a upward move, the Bollinger Bands are squeezing suggesting range-bound action, so also is the ADX.
5) Considering the above, 5060 will remain a challenge for the Bulls for today, but if they are able to sustain over that level, then we can see 5120 5150 levels where again heavy selling can be expected. Below 4980 however, we may see Bears in action again trying for 4940 4900.
6) For today, our trading plan is as under.
a) Open fresh shorts at around 5060 with a SL of 5080 and a target of 4980. Below 4980 we will add to our short positions with a target of 4940 4910. Above 5080 we will be long till 5150.
b) Open fresh longs at 5010 with a SL of 4990 and a target of 5060. Above 5080 we will add we will add to our long positions. Below 4980 we will be short till 4910.
Happy Trading.
For cash market recommendations see our Daily Pre Market calls on NSE
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