Use today's gap up opening to book profits and create new short positions.
As discussed yesterday, the Nifty traded in a tight range and found support at 5200 with a sharp bounce back to 5266. Today, given the global cues, the Nifty is likely to open with a large gap up. As seen in recent past, up gaps can continue to remain unstable and get filled soon. We will be on look out for shorting opportunities around 5380 5400.
1) The Elder Ray readings :Bull Power reduces from +117 to +87 Bear Power increases from +22 to +7, indicating that the Bulls have yet again loosened their grip and that the Bears have been gaining strength all the while. However, the Bears have lacked that "one last" push that would have brought them into the negative zone.
2) The EMAs continue to point upwards, and now the 100 DMA also is showing inclination to support an up-move. However, the 200 DMA is still pointing downwards, reminding us that this still is an up-move within a larger downtrend.
3) The stochastics are just below the overbought zone, indicating that any up-move from here might be capped.
4) In the above chart, the MACD is showing divergence with the worm climbing up while the histogram is falling steadily. The ADX shows that the up-move is losing momentum. However, the volumes are on the rise again.
5) Considering the above, our trading plan is based on the premise that the Nifty has a major support at 5220 and a major resistance at 5380.
a) Around 5365 we will open fresh short positions with a SL of 5390 and a target of 5260. We will add to these short positions only below 5210 for a target of 5175.
b) Around 5250 we will open fresh long positions with a SL of 5210 and a target of 5365. We will add to these positions only above 5400 for a target of 5450.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty traded in a tight range and found support at 5200 with a sharp bounce back to 5266. Today, given the global cues, the Nifty is likely to open with a large gap up. As seen in recent past, up gaps can continue to remain unstable and get filled soon. We will be on look out for shorting opportunities around 5380 5400.
1) The Elder Ray readings :Bull Power reduces from +117 to +87 Bear Power increases from +22 to +7, indicating that the Bulls have yet again loosened their grip and that the Bears have been gaining strength all the while. However, the Bears have lacked that "one last" push that would have brought them into the negative zone.
2) The EMAs continue to point upwards, and now the 100 DMA also is showing inclination to support an up-move. However, the 200 DMA is still pointing downwards, reminding us that this still is an up-move within a larger downtrend.
3) The stochastics are just below the overbought zone, indicating that any up-move from here might be capped.
4) In the above chart, the MACD is showing divergence with the worm climbing up while the histogram is falling steadily. The ADX shows that the up-move is losing momentum. However, the volumes are on the rise again.
5) Considering the above, our trading plan is based on the premise that the Nifty has a major support at 5220 and a major resistance at 5380.
a) Around 5365 we will open fresh short positions with a SL of 5390 and a target of 5260. We will add to these short positions only below 5210 for a target of 5175.
b) Around 5250 we will open fresh long positions with a SL of 5210 and a target of 5365. We will add to these positions only above 5400 for a target of 5450.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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