Nifty may fill recent gaps between 5320 and 5220
As discussed yesterday, the Nifty was in the overbought zone and remained under pressure throughout the trading session. Today, given the global cues, the Nifty is likely to open below 5320 and may try to fill the gap till 5220.
1) The Elder Ray readings : Bull Power reduced from +272 to +204 Bear Power increased from +195 to +159. Indicating that Bulls are stopping to catch some breath and the Bears are still in the opponents territory. Any dips should be used to open long positions.
2) The EMAs are still pointing northwards with a unsustainable gradient. A cooling off on the Nifty may be round the corner. However, the immediate trend is still upwards.
3) The stochastics indicate Nifty is still in overbought zone and ready to dip down any moment now.
4) In the above chart, the MACD is truly in the positive zone and pointing upwards. The ADX indicates that the uptrend is slowing down. However, it also indicates that the downtrend has no momentum as of now.
5) Considering the above, we have devised our trading plan for the day as under
a) Around 5210 we will open fresh long positions with a SL of 5180 and a target of 5310. We will add to these long positions only above 5360.
b) Around 5320 we will open fresh short positions with a SL of 5355 and a target of 5220. We will add to these short positions only below 5175.
c) We will patiently wait for our start prices to arrive. When in profit, we will trail our stop loss so as to preserve our positions.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty was in the overbought zone and remained under pressure throughout the trading session. Today, given the global cues, the Nifty is likely to open below 5320 and may try to fill the gap till 5220.
1) The Elder Ray readings : Bull Power reduced from +272 to +204 Bear Power increased from +195 to +159. Indicating that Bulls are stopping to catch some breath and the Bears are still in the opponents territory. Any dips should be used to open long positions.
2) The EMAs are still pointing northwards with a unsustainable gradient. A cooling off on the Nifty may be round the corner. However, the immediate trend is still upwards.
3) The stochastics indicate Nifty is still in overbought zone and ready to dip down any moment now.
4) In the above chart, the MACD is truly in the positive zone and pointing upwards. The ADX indicates that the uptrend is slowing down. However, it also indicates that the downtrend has no momentum as of now.
5) Considering the above, we have devised our trading plan for the day as under
a) Around 5210 we will open fresh long positions with a SL of 5180 and a target of 5310. We will add to these long positions only above 5360.
b) Around 5320 we will open fresh short positions with a SL of 5355 and a target of 5220. We will add to these short positions only below 5175.
c) We will patiently wait for our start prices to arrive. When in profit, we will trail our stop loss so as to preserve our positions.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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