All eyes on the RBI monetary policy now
As discussed yesterday, the whipsaw of the Nifty continued between 4967 and 5076. In the end the Bulls could break out of the range and have managed to close above the near term resistance of 5060. Today also the Nifty seems to open with a up gap of about 50 points.
1) The Elder Ray readings as of now - Bull Power increased from +12 to +68. Bear Power reduced from -96 to -55. Gives out a fresh buy signal and to look out for short covering opportunities.
2) The stochastics are threatening to go into the overbought area.
3) The moving averages continue to point downwards, emphasizing that we are in a overall downtrend, and that this could turn out to be just a relief rally and not a trend reversal.
4) In the above chart, MACD points a upward movement and the ADX shows bull run strengthening.
5) While the bull run may last for another couple of sessions, we must not forget that we are in a overall downtrend, and buying should be with caution and profits in Long positions should be taken away as quickly as possible.
6) Today, the markets might open near 5120 and we will be bullish till the open breaks with a target of 5170. Below the open, we will be bearish till 5060 with a SL of the opening mark. Above 5170, the next targets will be 5220 and 5320.
7) Watch out keenly for a close below 5060. If that happens, we are in for a retest of 4900, which seems to be a bottom now in place.
Happy Trading,
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the whipsaw of the Nifty continued between 4967 and 5076. In the end the Bulls could break out of the range and have managed to close above the near term resistance of 5060. Today also the Nifty seems to open with a up gap of about 50 points.
1) The Elder Ray readings as of now - Bull Power increased from +12 to +68. Bear Power reduced from -96 to -55. Gives out a fresh buy signal and to look out for short covering opportunities.
2) The stochastics are threatening to go into the overbought area.
3) The moving averages continue to point downwards, emphasizing that we are in a overall downtrend, and that this could turn out to be just a relief rally and not a trend reversal.
4) In the above chart, MACD points a upward movement and the ADX shows bull run strengthening.
5) While the bull run may last for another couple of sessions, we must not forget that we are in a overall downtrend, and buying should be with caution and profits in Long positions should be taken away as quickly as possible.
6) Today, the markets might open near 5120 and we will be bullish till the open breaks with a target of 5170. Below the open, we will be bearish till 5060 with a SL of the opening mark. Above 5170, the next targets will be 5220 and 5320.
7) Watch out keenly for a close below 5060. If that happens, we are in for a retest of 4900, which seems to be a bottom now in place.
Happy Trading,
For cash market recommendations see our Daily Pre Market calls on NSE
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