Nifty is in a bounce back mode, but supply zone nearing.
We are resuming our trading after a 2 session gap today. The Bulls in the mean time have staged a surprise comeback, as the bears have taken a back seat. Will the bulls be able to follow up? or will the bears strike back. Some technical analysis will clear the smoke.
1) The Elder Ray readings : Bull Power increases from -142 to -42. Bear Power reduces from -216 to -134. This indicates that the Bulls are still in the opponents territory, and their recent gain in strength is not compensated by equal loss in strength by the bears. This gives rise to a belief that the bears may be waiting for an opportune time to strike back.
2) The EMAs have started turning flat from a pointing down direction. The near EMA has turned to pointing upwards now. The DMAs continue to point downwards, indicating that the downtrend is not over yet.
3) The stochastics are just out of the oversold zone now, and are threatening to rise. This is suggestive, that the immediate trend could be upwards, and that the Nifty could rise for a couple of sessions more.
4) In the above chart, the volumes have decreased in yesterday's rise raising suspicion about the sustenance of the uptrend. However, the MACD and the ADX are supporting an uptrend as of now.
5) The market is likely to swing both ways today, after a flat opening.
5) Considering the above, our trading plan for the day is as under
a) Around 4920, we will open fresh short positions with a SL of 4955 and a target of 4850. We will add to these short positions, only below 4815.
b) Around 4845, we will open fresh long positions with a SL of 4810 and a target of 4925. We will add to these long positions, only above 4955.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
We are resuming our trading after a 2 session gap today. The Bulls in the mean time have staged a surprise comeback, as the bears have taken a back seat. Will the bulls be able to follow up? or will the bears strike back. Some technical analysis will clear the smoke.
1) The Elder Ray readings : Bull Power increases from -142 to -42. Bear Power reduces from -216 to -134. This indicates that the Bulls are still in the opponents territory, and their recent gain in strength is not compensated by equal loss in strength by the bears. This gives rise to a belief that the bears may be waiting for an opportune time to strike back.
2) The EMAs have started turning flat from a pointing down direction. The near EMA has turned to pointing upwards now. The DMAs continue to point downwards, indicating that the downtrend is not over yet.
3) The stochastics are just out of the oversold zone now, and are threatening to rise. This is suggestive, that the immediate trend could be upwards, and that the Nifty could rise for a couple of sessions more.
4) In the above chart, the volumes have decreased in yesterday's rise raising suspicion about the sustenance of the uptrend. However, the MACD and the ADX are supporting an uptrend as of now.
5) The market is likely to swing both ways today, after a flat opening.
5) Considering the above, our trading plan for the day is as under
a) Around 4920, we will open fresh short positions with a SL of 4955 and a target of 4850. We will add to these short positions, only below 4815.
b) Around 4845, we will open fresh long positions with a SL of 4810 and a target of 4925. We will add to these long positions, only above 4955.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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