Nifty to consolidate in a narrow range today.
As discussed on Friday, the Nifty opened with a positive gap up at 4884 but found resistance at 4925 and retreated back to close at 4888. Today, the Nifty is likely to be range bound as it is poised right between its near term supports and resistances. Also as we approach the results season, there is some amount of anxiety reflecting in the Nifty movements. The following technical analysis will attempt to throw some more clarity on this.
1) The Elder Ray readings : Bull Power rises from -80 to +17 Bear Power reduces from -167 to -44. This clearly shows that both the Bulls and Bears are safely within their own halves of the territory, and waiting for a trigger.
2) The moving averages have started to flatten out, indicating a consolidation ahead.
3) The stochastics are in favor of a small bullish trend, as the slow stochastics are still in the oversold zone.
4) In the above chart, the MACD is still in the negative, but showing signs of a rise. The ADX is again converging, giving equal weight-age to the bulls and the bears.
5) The immediate resistance for an up move is in the 4950 5000 zone. The immediate support to the down trend is in the zone of 4850 4820 zone.
6) Considering the above, we have made our trading plan for the day as under
a) We will open long positions, near 4850 with a SL of 4810 and a target of 4940. We will add to our longs above 4890 only.
b) We will open short positions, near 4940 with a SL of 4980 and a target of 4850. We will add to our short positions only below 4800.
c) We will tighten our trailing stop losses as our trades enter profiting zones.
Today's market range we feel will be 4850 4950
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the Nifty opened with a positive gap up at 4884 but found resistance at 4925 and retreated back to close at 4888. Today, the Nifty is likely to be range bound as it is poised right between its near term supports and resistances. Also as we approach the results season, there is some amount of anxiety reflecting in the Nifty movements. The following technical analysis will attempt to throw some more clarity on this.
1) The Elder Ray readings : Bull Power rises from -80 to +17 Bear Power reduces from -167 to -44. This clearly shows that both the Bulls and Bears are safely within their own halves of the territory, and waiting for a trigger.
2) The moving averages have started to flatten out, indicating a consolidation ahead.
3) The stochastics are in favor of a small bullish trend, as the slow stochastics are still in the oversold zone.
4) In the above chart, the MACD is still in the negative, but showing signs of a rise. The ADX is again converging, giving equal weight-age to the bulls and the bears.
5) The immediate resistance for an up move is in the 4950 5000 zone. The immediate support to the down trend is in the zone of 4850 4820 zone.
6) Considering the above, we have made our trading plan for the day as under
a) We will open long positions, near 4850 with a SL of 4810 and a target of 4940. We will add to our longs above 4890 only.
b) We will open short positions, near 4940 with a SL of 4980 and a target of 4850. We will add to our short positions only below 4800.
c) We will tighten our trailing stop losses as our trades enter profiting zones.
Today's market range we feel will be 4850 4950
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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