Nifty may continue the up-move with some bouts of profit taking.
As discussed in our last post, the two way move did not come out, and the nifty continued to rise unabated throughout the entire session on Friday, to close near its high. Today, given the global cues, the Nifty is expected to open flat and stay with a positive bias, with a few bouts of profit taking.
1) The Elder Ray readings : Bull Power rises from +124 to +152 Bear Power also rises from +29 to +8. Indicating that the run away rally may hit stumbling blocks ahead, however, the bullish trend may continue for a while now.
2) The EMAs are now pointing upwards, and are supportive of the current bullish trend. Also the Nifty is trading above 5020 its 50DMA, which could play as a good immediate support for the markets.
3) The fast stochastics are nearing the overbought zone now, but the slow stochastics are trailing way behind, indicating that the bullish trend might continue, but can slow down a bit.
4) In the above chart, the MACD is in the negative and rising. The histogram has just turned into positive, and is supporting the up-move on the nifty. The ADX has generated a fresh buy signal, but the neutral ADX is on top and falling, indicating that the fresh buy signal may not last long.
5) Considering the above, our trading plan for the day will be as under
a) Around 5025, we will open fresh long positions with a SL of 5005 and a target of 5090. We will add to these long positions only above 5115.
b) Around 5140, we will open fresh short positions with a SL of 5170 and a target of 5015. We will add to these short positions only below 5000.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, the two way move did not come out, and the nifty continued to rise unabated throughout the entire session on Friday, to close near its high. Today, given the global cues, the Nifty is expected to open flat and stay with a positive bias, with a few bouts of profit taking.
1) The Elder Ray readings : Bull Power rises from +124 to +152 Bear Power also rises from +29 to +8. Indicating that the run away rally may hit stumbling blocks ahead, however, the bullish trend may continue for a while now.
2) The EMAs are now pointing upwards, and are supportive of the current bullish trend. Also the Nifty is trading above 5020 its 50DMA, which could play as a good immediate support for the markets.
3) The fast stochastics are nearing the overbought zone now, but the slow stochastics are trailing way behind, indicating that the bullish trend might continue, but can slow down a bit.
4) In the above chart, the MACD is in the negative and rising. The histogram has just turned into positive, and is supporting the up-move on the nifty. The ADX has generated a fresh buy signal, but the neutral ADX is on top and falling, indicating that the fresh buy signal may not last long.
5) Considering the above, our trading plan for the day will be as under
a) Around 5025, we will open fresh long positions with a SL of 5005 and a target of 5090. We will add to these long positions only above 5115.
b) Around 5140, we will open fresh short positions with a SL of 5170 and a target of 5015. We will add to these short positions only below 5000.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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