Nifty likely to trade in a confined range yet again in a two way swinging market.
As discussed yesterday, the Nifty continued its range-bound trade but maintained a positive bias. On the charts, the Nifty has yet again formed a "Doji" indicating indecision in the minds of market participants. This trend seems to continue today as well, giving a good chance for traders to earn in both swings.
1) The Elder Ray readings : Bull Power increases from +126 to +151 Bear Power reduces +73 to +84. This indicates that a bullish rally might be in the offing in a few trading sessions. Also supports the positive bias in this volatile market.
2) The EMAs continue to point upwards, indicating sustainability to the current positive bias. The Nifty continues to trade above its 50 DMA which is currently at 5016.
3) The stochastics are well in the overbought zone, and hence indicate that the headroom for a big rally upwards is limited.
4) In the above chart, the upper Bollinger Band is falling steeply, indicating falling targets for any up-move. The MACD is rising, indicating a positive bias to the markets. The ADX is also supporting the positive bias, but indicates suspicion on the sustainability of the up-move.
5) Considering the above, we have devised our trading plan for the day as under
a) Around 5020, we will open fresh long positions with a SL of 4980 and a target of 5090. We will add to these long positions only above 5120.
b) Around 5100, we will open fresh short positions with a SL of 5130 and a target of 5010. We will add to these short positions only below 4975.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty continued its range-bound trade but maintained a positive bias. On the charts, the Nifty has yet again formed a "Doji" indicating indecision in the minds of market participants. This trend seems to continue today as well, giving a good chance for traders to earn in both swings.
1) The Elder Ray readings : Bull Power increases from +126 to +151 Bear Power reduces +73 to +84. This indicates that a bullish rally might be in the offing in a few trading sessions. Also supports the positive bias in this volatile market.
2) The EMAs continue to point upwards, indicating sustainability to the current positive bias. The Nifty continues to trade above its 50 DMA which is currently at 5016.
3) The stochastics are well in the overbought zone, and hence indicate that the headroom for a big rally upwards is limited.
4) In the above chart, the upper Bollinger Band is falling steeply, indicating falling targets for any up-move. The MACD is rising, indicating a positive bias to the markets. The ADX is also supporting the positive bias, but indicates suspicion on the sustainability of the up-move.
5) Considering the above, we have devised our trading plan for the day as under
a) Around 5020, we will open fresh long positions with a SL of 4980 and a target of 5090. We will add to these long positions only above 5120.
b) Around 5100, we will open fresh short positions with a SL of 5130 and a target of 5010. We will add to these short positions only below 4975.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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