Nifty may open with a big positive gap. But resistance not far away.
As discussed in our last two posts, the expected up-move came in the Nifty and this up-move may now continue for a while. Today, the Nifty may open with a nice positive gap and may continue the rally towards the next destination of 4930.
1) The Elder Ray readings : Bull Power reduces from -21 to -28 Bear Power increases from -100 to -125. This indicates that the Bears are still driving the markets, whereas the Bulls have some more ground to cover. Any up-move would meet with stiff resistance around key levels of 4930.
2) The EMAs and the DMAs continue to point downwards, reminding that we are still in a intermediate downtrend, and that this could as well be a up-move within a downtrend.
3) The stochastics are in the neutral territory and are pointing flat, indicating that any trend would meet opposing forces frequently.
4) In the above chart, the volumes have spiked up in yesterday's up-move, suggesting a stronger opening of the markets today. Global cues also support this opening with positive gap. However, the ADX is suggesting otherwise, and the MACD is also indicating that markets are still in a downtrend.
5) Considering the above, we have devised our trading plan for the day as under.
a) Around 4920, we will open fresh short positions with a SL of 4955 and a target of 4840. We will add to these short positions only below 4810.
b) Around 4820, we will open fresh long positions with a SL of 4780 and a target of 4910. We will add to these long positions only above 4960.
c) We will book profits in our overnight long positions at around 4890 and avoid re-entry for overnight positions.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last two posts, the expected up-move came in the Nifty and this up-move may now continue for a while. Today, the Nifty may open with a nice positive gap and may continue the rally towards the next destination of 4930.
1) The Elder Ray readings : Bull Power reduces from -21 to -28 Bear Power increases from -100 to -125. This indicates that the Bears are still driving the markets, whereas the Bulls have some more ground to cover. Any up-move would meet with stiff resistance around key levels of 4930.
2) The EMAs and the DMAs continue to point downwards, reminding that we are still in a intermediate downtrend, and that this could as well be a up-move within a downtrend.
3) The stochastics are in the neutral territory and are pointing flat, indicating that any trend would meet opposing forces frequently.
4) In the above chart, the volumes have spiked up in yesterday's up-move, suggesting a stronger opening of the markets today. Global cues also support this opening with positive gap. However, the ADX is suggesting otherwise, and the MACD is also indicating that markets are still in a downtrend.
5) Considering the above, we have devised our trading plan for the day as under.
a) Around 4920, we will open fresh short positions with a SL of 4955 and a target of 4840. We will add to these short positions only below 4810.
b) Around 4820, we will open fresh long positions with a SL of 4780 and a target of 4910. We will add to these long positions only above 4960.
c) We will book profits in our overnight long positions at around 4890 and avoid re-entry for overnight positions.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Sir,
ReplyDeleteYou missed the levels today. But you were right in saying that nifty will meet resistance. Should we short nifty at these levels now? or should we buy on dips?