Nifty in "No Man's Land" yet
Yesterday, we had discussed that the Nifty is dangerously close to the near term resistance of 5170. Nifty never crossed that threshold. However, the Bears were not able to take down the Nifty even once below the support level of 5100. Today, considering the weak global cues, the Nifty is likely to open lower. But the tug of war continues.
1) The Elder Ray readings - Bull Power increased from +102 to +108. Bear Power decreased from -12 to +50. Indicating that Bulls have stopped for re-energizing whereas the Bears are still regrouping.
2) The 30 DMA has started to flatten out from a falling line. The 8EMA has now crossed over the 21EMA signaling advantage for a upward movement. However, this trend has to sustain, at least consolidate, before it gets confirmed.
3) The stochastics are well in the overbought region, indicating that a heavy supply is just round the corner.
4) In the above chart, MACD and ADX are showing that Bulls are in control. But the Nifty has found resistance at 20EMA.
5) Our plan for the day: Given the weak global cues, we expect the Nifty to open weak. We expect the Nifty to take support near the 50EMA around 5070 and resistance around 5170.
a) Go long on Nifty at 5080 with a SL of 5060 and a target of 5140. Keep booking interim profits. Add to longs above 5170 for a target of 5220
b) Go short on Nifty at 5160 with a SL of 5185 and a target of 5110. Add to shorts below 5060 for a target of 4990. Book interim profits.
Happy Trading.
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we had discussed that the Nifty is dangerously close to the near term resistance of 5170. Nifty never crossed that threshold. However, the Bears were not able to take down the Nifty even once below the support level of 5100. Today, considering the weak global cues, the Nifty is likely to open lower. But the tug of war continues.
1) The Elder Ray readings - Bull Power increased from +102 to +108. Bear Power decreased from -12 to +50. Indicating that Bulls have stopped for re-energizing whereas the Bears are still regrouping.
2) The 30 DMA has started to flatten out from a falling line. The 8EMA has now crossed over the 21EMA signaling advantage for a upward movement. However, this trend has to sustain, at least consolidate, before it gets confirmed.
3) The stochastics are well in the overbought region, indicating that a heavy supply is just round the corner.
4) In the above chart, MACD and ADX are showing that Bulls are in control. But the Nifty has found resistance at 20EMA.
5) Our plan for the day: Given the weak global cues, we expect the Nifty to open weak. We expect the Nifty to take support near the 50EMA around 5070 and resistance around 5170.
a) Go long on Nifty at 5080 with a SL of 5060 and a target of 5140. Keep booking interim profits. Add to longs above 5170 for a target of 5220
b) Go short on Nifty at 5160 with a SL of 5185 and a target of 5110. Add to shorts below 5060 for a target of 4990. Book interim profits.
Happy Trading.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.