The nifty may remain rangebound in a volatile market.
As discussed on Friday, the whipsaw like movements in the Nifty continued, with the Nifty opening in the positive, and closing slightly in the negative after trading in a 70 point range. Today, given the global cues, again the nifty is likely to open with a positive bias, but is likely to meet stiff resistance soon.
1) The Elder Ray readings :Bull Power rises from -9 to +19 Bear Power reduces from -116 to -51, indicating that the Bulls have now fully recovered their lost ground, but they look exhausted for now. A bit of consolidation might inject some energy for the Bulls. On the other hand, the Bears have been watching the show from the sidelines, and may strike soon.
2) Only the near EMA is flat, else all the EMAs and the DMAs continue to point downwards.
3) The fast stochastics have turned downwards again, and point to a revisit to the oversold zone soon.
4) In the above chart, the volumes have depleted, suggesting the current rise might not sustain. The MACD is threatening to turn down again, and all the efforts by the Bulls have not been able to generate a fresh buy signal on the ADX.
5) Considering the above, we have devised our trading plan for the day as under.
a) Around 4765, we will open fresh short positions with a SL of 4800 and a target of 4665. We will add to these short positions only below 4625.
b) Around 4645, we will open fresh long positions with a SL of 4630 and a target of 4725. We will add to these long positions only above 4810.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the whipsaw like movements in the Nifty continued, with the Nifty opening in the positive, and closing slightly in the negative after trading in a 70 point range. Today, given the global cues, again the nifty is likely to open with a positive bias, but is likely to meet stiff resistance soon.
1) The Elder Ray readings :Bull Power rises from -9 to +19 Bear Power reduces from -116 to -51, indicating that the Bulls have now fully recovered their lost ground, but they look exhausted for now. A bit of consolidation might inject some energy for the Bulls. On the other hand, the Bears have been watching the show from the sidelines, and may strike soon.
2) Only the near EMA is flat, else all the EMAs and the DMAs continue to point downwards.
3) The fast stochastics have turned downwards again, and point to a revisit to the oversold zone soon.
4) In the above chart, the volumes have depleted, suggesting the current rise might not sustain. The MACD is threatening to turn down again, and all the efforts by the Bulls have not been able to generate a fresh buy signal on the ADX.
5) Considering the above, we have devised our trading plan for the day as under.
a) Around 4765, we will open fresh short positions with a SL of 4800 and a target of 4665. We will add to these short positions only below 4625.
b) Around 4645, we will open fresh long positions with a SL of 4630 and a target of 4725. We will add to these long positions only above 4810.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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