Profit booking post positive opening on the cards
As discussed yesterday, the opportunity to go long using the negative opening could prove correct with the positive opening that is expected today. But as said in our earlier posts, it will require a good follow up by either the Bulls or the Bears to set a trend. Currently, Nifty is on a tricky wicket, and could start a slide any time.
1) The Elder Ray readings : Bull Power decreased from +151 to +44 Bear Power increased from +75 to -2. This shows that both the Bulls and the Bears are in their respective territories, and either of them could take the lead. Bulls have an additional task to fill up the yesterday's down gaps.
2) The EMAs which were recently pointing upwards, have turned flat, indicating a pause in the up move. The DMAs are pointing downwards still.
3) The fast stochastics have come out of the overbought zone, while the slow stochastics are still in the overbought zone. A slide down on the Nifty cannot be ruled out in coming few sessions, unless the Bulls really work hard.
4) In the above chart, the MACD has started sliding down, though it is still in a positive territory. The ADX shows a rise in the down move and a fall in the up move.
5) The trading range and the volumes have fallen in the last two trading sessions.
6) Based on this, our trading plan for the day is as under.
a) Wait for Nifty to form a trend in the range of 5060 5090, with 5080 as the pivot.
b) Below 5060, we will open fresh short positions with a SL of 5090 and a target of 5000 4960.
c) Above 5090 , we will open fresh long positions with a SL of 5060 and a target of 5130 5160.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the opportunity to go long using the negative opening could prove correct with the positive opening that is expected today. But as said in our earlier posts, it will require a good follow up by either the Bulls or the Bears to set a trend. Currently, Nifty is on a tricky wicket, and could start a slide any time.
1) The Elder Ray readings : Bull Power decreased from +151 to +44 Bear Power increased from +75 to -2. This shows that both the Bulls and the Bears are in their respective territories, and either of them could take the lead. Bulls have an additional task to fill up the yesterday's down gaps.
2) The EMAs which were recently pointing upwards, have turned flat, indicating a pause in the up move. The DMAs are pointing downwards still.
3) The fast stochastics have come out of the overbought zone, while the slow stochastics are still in the overbought zone. A slide down on the Nifty cannot be ruled out in coming few sessions, unless the Bulls really work hard.
4) In the above chart, the MACD has started sliding down, though it is still in a positive territory. The ADX shows a rise in the down move and a fall in the up move.
5) The trading range and the volumes have fallen in the last two trading sessions.
6) Based on this, our trading plan for the day is as under.
a) Wait for Nifty to form a trend in the range of 5060 5090, with 5080 as the pivot.
b) Below 5060, we will open fresh short positions with a SL of 5090 and a target of 5000 4960.
c) Above 5090 , we will open fresh long positions with a SL of 5060 and a target of 5130 5160.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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