Can the Bulls maintain the momentum?
The bulls made a good comeback yesterday, and have got the Nifty above 5120 and never really gave up any ground during the entire trading session. Having said that, they are now dangerously close to the near term resistance of 5170. Above that there is a huge unfilled gap between 5220 and 5320.
1) The Elder Ray readings as of now - Bull Power has increased from +36 to +102, Bear Power has remained constant at -12. This indicates tough posturing between Bears and Bulls in coming sessions. Bulls have the current advantage.
2) The 13EMA now has made a higher top giving a signal of tough times for the Bears. However the DMAs are still pointing downwards.
3) The stochastics are now again in the overbought zone and it indicates a tough time for the Bulls to keep the Nifty afloat.
4) In the above chart, Nifty is dangerously near the top of the Bollinger Bands and has found resistance at the 50 EMA. The ADX is signalling a upward rally on the cards. Clearly mixed signals those. Making a trading plan and trading that plan becomes extremely important.
5) Our trading plan for the day.
a) Wait for a break out above 5180 and then go long on the Nifty for 5220 with a SL just below 5160. Add to the longs above 5240 and stay long till 5320, with a SL of just below 5200.
b) If 5180 is not crossed, then stay away from the Nifty, till 5100 is broken. Observe 5100 to 5180 as no trading zone. Below 5090 short Nifty with a SL of 5120 and a target of 5000.
Happy Trading
For cash market recommendations see our Daily Pre Market calls on NSE
The bulls made a good comeback yesterday, and have got the Nifty above 5120 and never really gave up any ground during the entire trading session. Having said that, they are now dangerously close to the near term resistance of 5170. Above that there is a huge unfilled gap between 5220 and 5320.
1) The Elder Ray readings as of now - Bull Power has increased from +36 to +102, Bear Power has remained constant at -12. This indicates tough posturing between Bears and Bulls in coming sessions. Bulls have the current advantage.
2) The 13EMA now has made a higher top giving a signal of tough times for the Bears. However the DMAs are still pointing downwards.
3) The stochastics are now again in the overbought zone and it indicates a tough time for the Bulls to keep the Nifty afloat.
4) In the above chart, Nifty is dangerously near the top of the Bollinger Bands and has found resistance at the 50 EMA. The ADX is signalling a upward rally on the cards. Clearly mixed signals those. Making a trading plan and trading that plan becomes extremely important.
5) Our trading plan for the day.
a) Wait for a break out above 5180 and then go long on the Nifty for 5220 with a SL just below 5160. Add to the longs above 5240 and stay long till 5320, with a SL of just below 5200.
b) If 5180 is not crossed, then stay away from the Nifty, till 5100 is broken. Observe 5100 to 5180 as no trading zone. Below 5090 short Nifty with a SL of 5120 and a target of 5000.
Happy Trading
For cash market recommendations see our Daily Pre Market calls on NSE
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