With the Nifty nearing key support levels, a relief rally is on the cards now.
As discussed yesterday, the Nifty consolidation was on throughout the session, with the Nifty unable to cross our resistance levels of 4630 and reached our targets of 4540. Today, given the global cues, the Nifty is likely to open with a positive gap up, and continue to rally throughout the session with some bouts of selling coming in.
1) The Elder Ray readings : Bull Power rises from -175 to -124 Bear Power reduces from -242 to -230. This indicates that the Bulls are still long way from safety, and that the Bears may strike back any time.
2) The EMAs and the DMAs continue to point downwards, and any rallies will be sold off quickly is what they indicate.
3) The stochastics are well within the oversold zone and point to a short covering rally.
4) In the above chart, the upper Bollinger Band is expanding upwards and the Nifty is touching the bottom Bollinger Band, indicating that a bounce back is to be expected. However, the MACD and the ADX are still suggesting that the bearish trend will continue.
5) Considering the above, we have devised our trading plan for the day as under
a) Above 4640, we will open fresh long positions with a SL of 4610 and a target of 4710. We will add to these long positions only above 4740.
b) Around 4725, we will open fresh short positions with a SL of 4755 and a target of 4650. We will add to these short positions only below 4605.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty consolidation was on throughout the session, with the Nifty unable to cross our resistance levels of 4630 and reached our targets of 4540. Today, given the global cues, the Nifty is likely to open with a positive gap up, and continue to rally throughout the session with some bouts of selling coming in.
1) The Elder Ray readings : Bull Power rises from -175 to -124 Bear Power reduces from -242 to -230. This indicates that the Bulls are still long way from safety, and that the Bears may strike back any time.
2) The EMAs and the DMAs continue to point downwards, and any rallies will be sold off quickly is what they indicate.
3) The stochastics are well within the oversold zone and point to a short covering rally.
4) In the above chart, the upper Bollinger Band is expanding upwards and the Nifty is touching the bottom Bollinger Band, indicating that a bounce back is to be expected. However, the MACD and the ADX are still suggesting that the bearish trend will continue.
5) Considering the above, we have devised our trading plan for the day as under
a) Above 4640, we will open fresh long positions with a SL of 4610 and a target of 4710. We will add to these long positions only above 4740.
b) Around 4725, we will open fresh short positions with a SL of 4755 and a target of 4650. We will add to these short positions only below 4605.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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