Nifty is near key support levels and may stage a bounce back soon.
Yesterday, we had mentioned that the up-move would continue for a while. However, the Bulls lacked the strength to stage any follow up buying and the Nifty could not sustain the positive opening, and took support at the key level of 4785, before closing at 4805. Today, the Nifty is likely to have a flattish opening, and we expect a positive bias in the market movement.
1) The Elder Ray readings : Bull Power increases from -42 to -21. Bear Power reduces from -134 to -100. This indicates that the bulls are gradually regaining lost ground, and that the bears are a bit off-color although both are in the negative zone yet.
2) The EMAs are reducing their downward gradient, supportive of a small bounce-back. The near EMA is almost flat, suggesting a immediate arrest of the current downtrend.
3) The stochastics are also just touching the oversold zone boundary, and are supportive of a bounce-back.
4) In the above chart, the Nifty has alternating positive and negative closing candles since last 7 sessions, indicating indecision on part of both bulls and bears. The MACD is supportive of a bounce back. Also the ADX is suggesting loss of steam for the downtrend. However, the ADX is also suggesting that the up-move has not gathered enough momentum yet.
5) Considering the above, our trading plan for the day is as under
a) Around 4780, we will open fresh long positions with a SL of 4755 and a target of 4850. We will add to these long positions only above 4875.
b) Around 4865, we will open fresh short positions with a SL of 4885 and a target of 4785. We will add to these short positions only below 4750.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we had mentioned that the up-move would continue for a while. However, the Bulls lacked the strength to stage any follow up buying and the Nifty could not sustain the positive opening, and took support at the key level of 4785, before closing at 4805. Today, the Nifty is likely to have a flattish opening, and we expect a positive bias in the market movement.
1) The Elder Ray readings : Bull Power increases from -42 to -21. Bear Power reduces from -134 to -100. This indicates that the bulls are gradually regaining lost ground, and that the bears are a bit off-color although both are in the negative zone yet.
2) The EMAs are reducing their downward gradient, supportive of a small bounce-back. The near EMA is almost flat, suggesting a immediate arrest of the current downtrend.
3) The stochastics are also just touching the oversold zone boundary, and are supportive of a bounce-back.
4) In the above chart, the Nifty has alternating positive and negative closing candles since last 7 sessions, indicating indecision on part of both bulls and bears. The MACD is supportive of a bounce back. Also the ADX is suggesting loss of steam for the downtrend. However, the ADX is also suggesting that the up-move has not gathered enough momentum yet.
5) Considering the above, our trading plan for the day is as under
a) Around 4780, we will open fresh long positions with a SL of 4755 and a target of 4850. We will add to these long positions only above 4875.
b) Around 4865, we will open fresh short positions with a SL of 4885 and a target of 4785. We will add to these short positions only below 4750.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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