Do not discount the Bulls yet
As discussed yesterday, the Nifty found itself close to the top end of its trading range and as expected, some profit booking came in. The Nifty halted its progress at 5137 before shutting shop at 5078. The technicals indicate that, in spite of yesterday's mild correction, the Bull run cannot be discounted yet, and a further rally could be expected in the next few trading sessions. Let us see these technicals.
1) The Elder Ray readings : Bull Power increased from +161 to +169 Bear Power decreased from +48 to +100. A clear indication that the Bulls have stopped to catch breath, while the Bears have lost a lots of ground.
2) The simple moving averages have really flattened out now. The exponential moving averages are pointing upwards, and more importantly, the 8EMA is above both the 13EMA and the 21EMA.
3) The slow stochastics are well in the overbought zone, the fast stochastics have a small distance to catch up. This indicates that there is still some steam that might be left in the upward movement, although not much.
4) In the above chart, the MACD is still showing upward diversion, and the ADX is indicating a sustainable up move. Also the volumes in yesterday's fall have reduced.
5) Given the global cues, the markets are likely to have a soft opening today. The technicals indicate a positive bias and a limited downfall.
6) Considering the above, our trading plan for the day is as follows.
a) We will look out to open long positions around 5020 with a SL of 4980 and a target of 5100 5130. We will add to these long positions only above 5180.
b) Around 5130 we will look out to open short positions with a SL of 5170 and a target of 5080. In a falling market, we will avoid to open positions in the range of 5040 and 5080.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty found itself close to the top end of its trading range and as expected, some profit booking came in. The Nifty halted its progress at 5137 before shutting shop at 5078. The technicals indicate that, in spite of yesterday's mild correction, the Bull run cannot be discounted yet, and a further rally could be expected in the next few trading sessions. Let us see these technicals.
1) The Elder Ray readings : Bull Power increased from +161 to +169 Bear Power decreased from +48 to +100. A clear indication that the Bulls have stopped to catch breath, while the Bears have lost a lots of ground.
2) The simple moving averages have really flattened out now. The exponential moving averages are pointing upwards, and more importantly, the 8EMA is above both the 13EMA and the 21EMA.
3) The slow stochastics are well in the overbought zone, the fast stochastics have a small distance to catch up. This indicates that there is still some steam that might be left in the upward movement, although not much.
4) In the above chart, the MACD is still showing upward diversion, and the ADX is indicating a sustainable up move. Also the volumes in yesterday's fall have reduced.
5) Given the global cues, the markets are likely to have a soft opening today. The technicals indicate a positive bias and a limited downfall.
6) Considering the above, our trading plan for the day is as follows.
a) We will look out to open long positions around 5020 with a SL of 4980 and a target of 5100 5130. We will add to these long positions only above 5180.
b) Around 5130 we will look out to open short positions with a SL of 5170 and a target of 5080. In a falling market, we will avoid to open positions in the range of 5040 and 5080.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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