Nifty ready to break the range on the upside
As discussed in our last post, the RBI played the role of the trend decider. Also we had earlier suggested that the Nifty's trading range is all set to widen which is being witnessed now. Having said that, it would be better to gauge upto what extent the Nifty can grow unheeded, and a little bit of technical analysis would be the order of the day.
1) The Elder Ray readings : Bull Power reduces from +141 to +131 whereas the Bear Power also reduces from +16 to +107. This indicates that the Bulls have taken their well deserved break and are ready to take the Nifty way up from their recent highs.
2) The EMAs are pointing well in the upward direction supporting the bullish move ahead.
3) The stochastics are well into the overbought zone and show signs of some profit booking at higher levels.
4) In the above chart, the MACD is showing an up-move, as also the ADX is supporting the up-move too. However, the -ADX is suggesting that there is no further room for it to fall and that the Bears may be on the prowl just round the corner.
5) There is a down-gap that needs to be filled in the range of 5220 5320. This gap will be filled very quickly and once this gap is filled, there could be a quick fall in the Nifty. We will have to be ready for that development to happen.
5) Keeping the above in view, we have devised our trading plan for the day as under.
a) Around 5220, we will open fresh longs with a SL of 5190 and a target of 5310. We will add to these long positions only above 5335 for a fresh target of 5410.
b) Below 5180 we will open fresh shorts with a SL of 5210 and a target of 5110.
c) Around 5310 we will open fresh shorts with a SL of 5330 and a target of 5230.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, the RBI played the role of the trend decider. Also we had earlier suggested that the Nifty's trading range is all set to widen which is being witnessed now. Having said that, it would be better to gauge upto what extent the Nifty can grow unheeded, and a little bit of technical analysis would be the order of the day.
1) The Elder Ray readings : Bull Power reduces from +141 to +131 whereas the Bear Power also reduces from +16 to +107. This indicates that the Bulls have taken their well deserved break and are ready to take the Nifty way up from their recent highs.
2) The EMAs are pointing well in the upward direction supporting the bullish move ahead.
3) The stochastics are well into the overbought zone and show signs of some profit booking at higher levels.
4) In the above chart, the MACD is showing an up-move, as also the ADX is supporting the up-move too. However, the -ADX is suggesting that there is no further room for it to fall and that the Bears may be on the prowl just round the corner.
5) There is a down-gap that needs to be filled in the range of 5220 5320. This gap will be filled very quickly and once this gap is filled, there could be a quick fall in the Nifty. We will have to be ready for that development to happen.
5) Keeping the above in view, we have devised our trading plan for the day as under.
a) Around 5220, we will open fresh longs with a SL of 5190 and a target of 5310. We will add to these long positions only above 5335 for a fresh target of 5410.
b) Below 5180 we will open fresh shorts with a SL of 5210 and a target of 5110.
c) Around 5310 we will open fresh shorts with a SL of 5330 and a target of 5230.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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