With the Nifty in neutral zone, the whipsaw might start again.
As discussed yesterday, the relief rally on the Nifty did emerge late into the trading session. The Nifty closed at 4693 before just touching our target of 4710. Today, the Nifty is likely to open flat and is likely to swing both ways in a range bound market.
1) The Elder Ray readings :Bull Power increases from -124 to -44 Bear Power reduces from -230 to -150. This shows that the Bulls have tried hard, but have not managed to get into their positive zone. The Bears have given up some of their ground, but are still safe in their negative zone.
2) The EMAs continue to point downwards, reminding of the intermediate downtrend on the Nifty. The DMAs are also sliding down.
3) The fast stochastics have moved out of the oversold zone, and are pointing upwards, hinting that the uptrend might continue for a while.
4) In the above chart, the nifty has left the lower Bollinger Band, which is expanding downwards. With the upper Bollinger Band flattening, the indication is that the Nifty may slip back to its lows in a few sessions. The MACD is in the negative but is rising, indicating that the uptrend might continue. The ADX is suggesting a strengthening of the up-move but the strength of the down-move is still more than the strength of the up-move, and there is no buy signal yet from the ADX.
5) Considering the above our trading plan for the day is as under
a) Below 4725, we will open fresh short positions with a SL of 4755 and a target of 4660. We will add to these short positions only below 4635.
b) Above 4665, we will open fresh long positions with a SL of 4640 and a target of 4710. We will add to these long positions only above 4760.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the relief rally on the Nifty did emerge late into the trading session. The Nifty closed at 4693 before just touching our target of 4710. Today, the Nifty is likely to open flat and is likely to swing both ways in a range bound market.
1) The Elder Ray readings :Bull Power increases from -124 to -44 Bear Power reduces from -230 to -150. This shows that the Bulls have tried hard, but have not managed to get into their positive zone. The Bears have given up some of their ground, but are still safe in their negative zone.
2) The EMAs continue to point downwards, reminding of the intermediate downtrend on the Nifty. The DMAs are also sliding down.
3) The fast stochastics have moved out of the oversold zone, and are pointing upwards, hinting that the uptrend might continue for a while.
4) In the above chart, the nifty has left the lower Bollinger Band, which is expanding downwards. With the upper Bollinger Band flattening, the indication is that the Nifty may slip back to its lows in a few sessions. The MACD is in the negative but is rising, indicating that the uptrend might continue. The ADX is suggesting a strengthening of the up-move but the strength of the down-move is still more than the strength of the up-move, and there is no buy signal yet from the ADX.
5) Considering the above our trading plan for the day is as under
a) Below 4725, we will open fresh short positions with a SL of 4755 and a target of 4660. We will add to these short positions only below 4635.
b) Above 4665, we will open fresh long positions with a SL of 4640 and a target of 4710. We will add to these long positions only above 4760.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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