Nifty may see-saw in a profitable range today.
As discussed yesterday, the uptrend continued, with the Nifty opening with a big positive gap. However, as suggested, the Nifty hit the resistances and saw some amount of profit booking, thereby giving away most of the positive gap and closing way below the opening mark. Today, after a subdued opening, the Nifty is expected to swing in a good profitable range.
1) The Elder Ray readings : Bull Power rises from -28 to +124 Bear Power reduces from -125 to +29. This indicates that now the Bulls have recovered all their lost ground and are safe in the positive territory. Also indicated is that the Bears have given away more ground and are now in the positive zone, which is not favorable for the Bears.
2) The near EMAs have turned to point upwards. The far EMA is flat from pointing downwards. This is a favorable indication for the Bullish trend to continue.
3) The stochastics are right in the center of the neutral zone, indicating a directionless or a volatile market.
4) In the above chart, the volumes in yesterday's trade have gone down, indicating that the bullish trend has slowed down. Also indicating that the bears have not been able to pull down the nifty to their fullest strength. The MACD is in negative but rising, giving hopes of a rally in coming sessions. The ADX is indicating a strengthening up-move and a weakening down-move. However, it is also suggesting that still the up-move is weaker than the down-move. The neutral ADX is just near the unsustainable levels, indicating that neither move would be sustainable for long.
5) There is still a gap at 4850 to 4920 that needs to be filled up. Gaps in a up-move usually get filled quickly.
6) Considering the above, we have devised our trading plan for the day as under.
a) Around 4885, we will open fresh long positions with a SL of 4845 and a target of 4965. We will add to these long positions only above 4995.
b) Around 4975, we will open fresh short positions with a SL of 5005 and a target of 4875. We will add to these short positions only below 4845.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the uptrend continued, with the Nifty opening with a big positive gap. However, as suggested, the Nifty hit the resistances and saw some amount of profit booking, thereby giving away most of the positive gap and closing way below the opening mark. Today, after a subdued opening, the Nifty is expected to swing in a good profitable range.
1) The Elder Ray readings : Bull Power rises from -28 to +124 Bear Power reduces from -125 to +29. This indicates that now the Bulls have recovered all their lost ground and are safe in the positive territory. Also indicated is that the Bears have given away more ground and are now in the positive zone, which is not favorable for the Bears.
2) The near EMAs have turned to point upwards. The far EMA is flat from pointing downwards. This is a favorable indication for the Bullish trend to continue.
3) The stochastics are right in the center of the neutral zone, indicating a directionless or a volatile market.
4) In the above chart, the volumes in yesterday's trade have gone down, indicating that the bullish trend has slowed down. Also indicating that the bears have not been able to pull down the nifty to their fullest strength. The MACD is in negative but rising, giving hopes of a rally in coming sessions. The ADX is indicating a strengthening up-move and a weakening down-move. However, it is also suggesting that still the up-move is weaker than the down-move. The neutral ADX is just near the unsustainable levels, indicating that neither move would be sustainable for long.
5) There is still a gap at 4850 to 4920 that needs to be filled up. Gaps in a up-move usually get filled quickly.
6) Considering the above, we have devised our trading plan for the day as under.
a) Around 4885, we will open fresh long positions with a SL of 4845 and a target of 4965. We will add to these long positions only above 4995.
b) Around 4975, we will open fresh short positions with a SL of 5005 and a target of 4875. We will add to these short positions only below 4845.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.