Nifty might trade in a tight range with a positive bias
As discussed yesterday, the Nifty found resistance at 5040 levels and ended mildly in the red at 4974. Even with positive global cues and with a good positive opening, the Nifty was not able to sustain intermediate resistance, and profit booking was seen ahead of the results season. Today, the Nifty is likely to trade in a tight range, with 4910 as the intermediate support.
1) The Elder Ray readings : Bull Power rises from +75 to +121 Bear Power reduces from -34 to +40. This indicates that the Bears are now taking a back step while the Bulls seem to have exhausted. A clear sign of sideways trading.
2) The moving averages have flattened out as the market awaits a new trigger. The stochastics are in the neutral range between the overbought and oversold zones.
3) The volumes are also in the higher end of their normal range. The ATR is hovering around 120.
4) In the above chart, the MACD is showing a upward diverision, and the ADX is showing a sustainable upmove.
5) Considering the above, our trading plan is based on the near term supports and resistances for the Nifty as under
a) Near 4910, we will open long positions with a target of 5000 and a SL of 4890. We will add to our positions only above 5060.
b) Near 5020, we will open fresh shorts with a SL of 5050 and a target of 4950. We will add to our positions only below 4880.
Today's trading range, 4910 5020.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty found resistance at 5040 levels and ended mildly in the red at 4974. Even with positive global cues and with a good positive opening, the Nifty was not able to sustain intermediate resistance, and profit booking was seen ahead of the results season. Today, the Nifty is likely to trade in a tight range, with 4910 as the intermediate support.
1) The Elder Ray readings : Bull Power rises from +75 to +121 Bear Power reduces from -34 to +40. This indicates that the Bears are now taking a back step while the Bulls seem to have exhausted. A clear sign of sideways trading.
2) The moving averages have flattened out as the market awaits a new trigger. The stochastics are in the neutral range between the overbought and oversold zones.
3) The volumes are also in the higher end of their normal range. The ATR is hovering around 120.
4) In the above chart, the MACD is showing a upward diverision, and the ADX is showing a sustainable upmove.
5) Considering the above, our trading plan is based on the near term supports and resistances for the Nifty as under
a) Near 4910, we will open long positions with a target of 5000 and a SL of 4890. We will add to our positions only above 5060.
b) Near 5020, we will open fresh shorts with a SL of 5050 and a target of 4950. We will add to our positions only below 4880.
Today's trading range, 4910 5020.
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.