Do not discount the Bulls yet As discussed yesterday, the Nifty found itself close to the top end of its trading range and as expected, some profit booking came in. The Nifty halted its progress at 5137 before shutting shop at 5078. The technicals indicate that, in spite of yesterday's mild correction, the Bull run cannot be discounted yet, and a further rally could be expected in the next few trading sessions. Let us see these technicals.1) The Elder Ray readings : Bull Power increased from +161 to +169 Bear Power decreased from +48 to +100. A clear indication that the Bulls have stopped to catch breath, while the Bears have lost a lots of ground.2) The simple moving averages have really flattened out now. The exponential moving averages are pointing upwards, and more importantly, the 8EMA is above both the 13EMA and the 21EMA. 3) The slow stochastics are well in the overbought zone, the fast stochastics have a small distance to catch up. This indicates that there is still some steam that might be left in the upward movement, although not much.4) In the above chart, the MACD is still showing upward diversion, and the ADX is indicating a sustainable up move. Also the volumes in yesterday's fall have reduced.5) Given the global cues, the markets are likely to have a soft opening today. The technicals indicate a positive bias and a limited downfall.6) Considering the above, our trading plan for the day is as follows.a) We will look out to open long positions around 5020 with a SL of 4980 and a target of 5100 5130. We will add to these long positions only above 5180.b) Around 5130 we will look out to open short positions with a SL of 5170 and a target of 5080. In a falling market, we will avoid to open positions in the range of 5040 and 5080.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Do not discount the Bulls yet
As discussed yesterday, the Nifty found itself close to the top end of its trading range and as expected, some profit booking came in. The Nifty halted its progress at 5137 before shutting shop at 5078. The technicals indicate that, in spite of yesterday's mild correction, the Bull run cannot be discounted yet, and a further rally could be expected in the next few trading sessions. Let us see these technicals.
1) The Elder Ray readings : Bull Power increased from +161 to +169 Bear Power decreased from +48 to +100. A clear indication that the Bulls have stopped to catch breath, while the Bears have lost a lots of ground.
2) The simple moving averages have really flattened out now. The exponential moving averages are pointing upwards, and more importantly, the 8EMA is above both the 13EMA and the 21EMA.
3) The slow stochastics are well in the overbought zone, the fast stochastics have a small distance to catch up. This indicates that there is still some steam that might be left in the upward movement, although not much.
4) In the above chart, the MACD is still showing upward diversion, and the ADX is indicating a sustainable up move. Also the volumes in yesterday's fall have reduced.
5) Given the global cues, the markets are likely to have a soft opening today. The technicals indicate a positive bias and a limited downfall.
6) Considering the above, our trading plan for the day is as follows.
a) We will look out to open long positions around 5020 with a SL of 4980 and a target of 5100 5130. We will add to these long positions only above 5180.
b) Around 5130 we will look out to open short positions with a SL of 5170 and a target of 5080. In a falling market, we will avoid to open positions in the range of 5040 and 5080.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
5170 a key level on the Nifty As discussed in our last two posts, the Bulls have been on the roll, and the positive bias continued during the entire trading session yesterday. The Nifty, once it traded above the key resistance of 5040, shot up and ended at 5099 after showing a day high of 5110. Now, one has to watch out how the Nifty reacts to 5170 which has been a key resistance point during the past few weeks. It is interesting to note, that the same level of 5170 had been a key support to the Nifty since June 2010 till Aug 2011. Will this level be taken out easily? No easy answers to that one.1) The Elder Ray readings : Bull Power rises from +121 to +161 Bear Power loses from +40 to +48. This is the maximum reading for the Bulls since 1st July 2011. It is also interesting to note that the current fall in the Nifty started 5 sessions since that day. The Bears seem to be taking a pause and regrouping, by not losing much ground on the Bear Power.2) The simple moving averages continue to point downwards, but the important exponential moving averages have started to point upwards. The Nifty yesterday closed above its 50DMA for the first time since 27th July 2011. This is a positive for the uptrend to continue, and 5035 the current 50DMA could be used as a good SL ( on closing basis ) for any long positions initiated now.3) The fast stochastics have already entered the overbought zone and the slow stochastics are following very closely, indicating that a near term top may be just around the corner, before prices start dropping.4) In the above chart, the MACD is about to form a double top, which is a caution for the bullish trend. The upper band of the Bollinger is opening up slightly, indicating volatility at the top levels.5) Overall, the Bulls seem to be overexcited and the Bears are just watching the fun and regrouping.6) Our trading plan for the day is based on 5170 as key resistance and 5035 as a key support. So,a) We will open long positions near 5060, with a SL of 5025 and a target of 5160. We will add to long positions only above 5190 with a fresh target of 5250 and 5320.b) Near 5160 we will open fresh short positions with a SL of 5190 and a target of 5050. We will add to short positions only below 5020 with a fresh target of 4960 and 4920.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
5170 a key level on the Nifty
As discussed in our last two posts, the Bulls have been on the roll, and the positive bias continued during the entire trading session yesterday. The Nifty, once it traded above the key resistance of 5040, shot up and ended at 5099 after showing a day high of 5110. Now, one has to watch out how the Nifty reacts to 5170 which has been a key resistance point during the past few weeks. It is interesting to note, that the same level of 5170 had been a key support to the Nifty since June 2010 till Aug 2011. Will this level be taken out easily? No easy answers to that one.
1) The Elder Ray readings : Bull Power rises from +121 to +161 Bear Power loses from +40 to +48. This is the maximum reading for the Bulls since 1st July 2011. It is also interesting to note that the current fall in the Nifty started 5 sessions since that day. The Bears seem to be taking a pause and regrouping, by not losing much ground on the Bear Power.
2) The simple moving averages continue to point downwards, but the important exponential moving averages have started to point upwards. The Nifty yesterday closed above its 50DMA for the first time since 27th July 2011. This is a positive for the uptrend to continue, and 5035 the current 50DMA could be used as a good SL ( on closing basis ) for any long positions initiated now.
3) The fast stochastics have already entered the overbought zone and the slow stochastics are following very closely, indicating that a near term top may be just around the corner, before prices start dropping.
4) In the above chart, the MACD is about to form a double top, which is a caution for the bullish trend. The upper band of the Bollinger is opening up slightly, indicating volatility at the top levels.
5) Overall, the Bulls seem to be overexcited and the Bears are just watching the fun and regrouping.
6) Our trading plan for the day is based on 5170 as key resistance and 5035 as a key support. So,
a) We will open long positions near 5060, with a SL of 5025 and a target of 5160. We will add to long positions only above 5190 with a fresh target of 5250 and 5320.
b) Near 5160 we will open fresh short positions with a SL of 5190 and a target of 5050. We will add to short positions only below 5020 with a fresh target of 4960 and 4920.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty might trade in a tight range with a positive bias As discussed yesterday, the Nifty found resistance at 5040 levels and ended mildly in the red at 4974. Even with positive global cues and with a good positive opening, the Nifty was not able to sustain intermediate resistance, and profit booking was seen ahead of the results season. Today, the Nifty is likely to trade in a tight range, with 4910 as the intermediate support.1) The Elder Ray readings : Bull Power rises from +75 to +121 Bear Power reduces from -34 to +40. This indicates that the Bears are now taking a back step while the Bulls seem to have exhausted. A clear sign of sideways trading.2) The moving averages have flattened out as the market awaits a new trigger. The stochastics are in the neutral range between the overbought and oversold zones.3) The volumes are also in the higher end of their normal range. The ATR is hovering around 120.4) In the above chart, the MACD is showing a upward diverision, and the ADX is showing a sustainable upmove.5) Considering the above, our trading plan is based on the near term supports and resistances for the Nifty as undera) Near 4910, we will open long positions with a target of 5000 and a SL of 4890. We will add to our positions only above 5060.b) Near 5020, we will open fresh shorts with a SL of 5050 and a target of 4950. We will add to our positions only below 4880.Today's trading range, 4910 5020.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty might trade in a tight range with a positive bias
As discussed yesterday, the Nifty found resistance at 5040 levels and ended mildly in the red at 4974. Even with positive global cues and with a good positive opening, the Nifty was not able to sustain intermediate resistance, and profit booking was seen ahead of the results season. Today, the Nifty is likely to trade in a tight range, with 4910 as the intermediate support.
1) The Elder Ray readings : Bull Power rises from +75 to +121 Bear Power reduces from -34 to +40. This indicates that the Bears are now taking a back step while the Bulls seem to have exhausted. A clear sign of sideways trading.
2) The moving averages have flattened out as the market awaits a new trigger. The stochastics are in the neutral range between the overbought and oversold zones.
3) The volumes are also in the higher end of their normal range. The ATR is hovering around 120.
4) In the above chart, the MACD is showing a upward diverision, and the ADX is showing a sustainable upmove.
5) Considering the above, our trading plan is based on the near term supports and resistances for the Nifty as under
a) Near 4910, we will open long positions with a target of 5000 and a SL of 4890. We will add to our positions only above 5060.
b) Near 5020, we will open fresh shorts with a SL of 5050 and a target of 4950. We will add to our positions only below 4880.
Today's trading range, 4910 5020.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Bullish trend to continue for now In yesterday's post, we had mentioned that the Nifty can demonstrate a bullish trend, citing the stochastics in the oversold zone. The Nifty did close at 4980 which was our resistance for yesterday. Today, however, riding on global cues, the Nifty is likely to open with a large gap up opening. It is also possible that the Nifty may test the higher end of the current range at 5150 within the next 2 to 3 trading sessions, if it is able to cross the near term resistance of 5040 decisively.1) The Elder Ray readings : Bull Power rises from +17 to +75 Bear Power reduces from -44 to -34. This shows that although the Bulls are gaining strength, the Bears are still safe in the negative zone, and it will be hard work for the Bulls in the coming sessions. 2) The near term moving averages have started flattening out, which suggest a slowing down of the downtrend and support for the bulls. However, the ATR has risen 10 points in the last two trading sessions, which indicates increase in volatility.3) The stochastics are right in the middle of the overbought and oversold range, but are pointing upwards.4) In the above chart, the MACD is still in negative and is flattening out from its rising position. This is an early sign of bears waiting eagerly to strike. The ADX is also converging. The Nifty is also right in the center of the Bollinger Bands, indicating that it will start meeting some resistance at higher levels.5) Considering the above, our trading plan for the day is with a positive bias, but with caution.a) The market is likely to open with a strong positive gap.b) We will open long positions 20 points above the opening mark with a target of 5110 and a SL 20 points below the opening mark. If the risk reward ratio, does not justify this trade, we will skip the trade. Above 5110, we will add to these long positions with a target of 5160.c) If the opening mark remains the day high for the first two hours of the trading session, we will open short positions with a target of 4910 and a SL 20 points above the opening mark. d) Near 5100, we will open positional shorts with a SL of 5170 and a target of 4910 as we are still in a long to medium term downtrend.Needless to say, that we will take positions, with whichever scenario happens first.Today's trading range expected for above plan , 4980 5100 Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Bullish trend to continue for now
In yesterday's post, we had mentioned that the Nifty can demonstrate a bullish trend, citing the stochastics in the oversold zone. The Nifty did close at 4980 which was our resistance for yesterday. Today, however, riding on global cues, the Nifty is likely to open with a large gap up opening. It is also possible that the Nifty may test the higher end of the current range at 5150 within the next 2 to 3 trading sessions, if it is able to cross the near term resistance of 5040 decisively.
1) The Elder Ray readings : Bull Power rises from +17 to +75 Bear Power reduces from -44 to -34. This shows that although the Bulls are gaining strength, the Bears are still safe in the negative zone, and it will be hard work for the Bulls in the coming sessions.
2) The near term moving averages have started flattening out, which suggest a slowing down of the downtrend and support for the bulls. However, the ATR has risen 10 points in the last two trading sessions, which indicates increase in volatility.
3) The stochastics are right in the middle of the overbought and oversold range, but are pointing upwards.
4) In the above chart, the MACD is still in negative and is flattening out from its rising position. This is an early sign of bears waiting eagerly to strike. The ADX is also converging. The Nifty is also right in the center of the Bollinger Bands, indicating that it will start meeting some resistance at higher levels.
5) Considering the above, our trading plan for the day is with a positive bias, but with caution.
a) The market is likely to open with a strong positive gap.
b) We will open long positions 20 points above the opening mark with a target of 5110 and a SL 20 points below the opening mark. If the risk reward ratio, does not justify this trade, we will skip the trade. Above 5110, we will add to these long positions with a target of 5160.
c) If the opening mark remains the day high for the first two hours of the trading session, we will open short positions with a target of 4910 and a SL 20 points above the opening mark.
d) Near 5100, we will open positional shorts with a SL of 5170 and a target of 4910 as we are still in a long to medium term downtrend.
Needless to say, that we will take positions, with whichever scenario happens first.
Today's trading range expected for above plan , 4980 5100
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to consolidate in a narrow range today.As discussed on Friday, the Nifty opened with a positive gap up at 4884 but found resistance at 4925 and retreated back to close at 4888. Today, the Nifty is likely to be range bound as it is poised right between its near term supports and resistances. Also as we approach the results season, there is some amount of anxiety reflecting in the Nifty movements. The following technical analysis will attempt to throw some more clarity on this.1) The Elder Ray readings : Bull Power rises from -80 to +17 Bear Power reduces from -167 to -44. This clearly shows that both the Bulls and Bears are safely within their own halves of the territory, and waiting for a trigger.2) The moving averages have started to flatten out, indicating a consolidation ahead.3) The stochastics are in favor of a small bullish trend, as the slow stochastics are still in the oversold zone.4) In the above chart, the MACD is still in the negative, but showing signs of a rise. The ADX is again converging, giving equal weight-age to the bulls and the bears.5) The immediate resistance for an up move is in the 4950 5000 zone. The immediate support to the down trend is in the zone of 4850 4820 zone.6) Considering the above, we have made our trading plan for the day as undera) We will open long positions, near 4850 with a SL of 4810 and a target of 4940. We will add to our longs above 4890 only.b) We will open short positions, near 4940 with a SL of 4980 and a target of 4850. We will add to our short positions only below 4800.c) We will tighten our trailing stop losses as our trades enter profiting zones.Today's market range we feel will be 4850 4950Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to consolidate in a narrow range today.
As discussed on Friday, the Nifty opened with a positive gap up at 4884 but found resistance at 4925 and retreated back to close at 4888. Today, the Nifty is likely to be range bound as it is poised right between its near term supports and resistances. Also as we approach the results season, there is some amount of anxiety reflecting in the Nifty movements. The following technical analysis will attempt to throw some more clarity on this.
1) The Elder Ray readings : Bull Power rises from -80 to +17 Bear Power reduces from -167 to -44. This clearly shows that both the Bulls and Bears are safely within their own halves of the territory, and waiting for a trigger.
2) The moving averages have started to flatten out, indicating a consolidation ahead.
3) The stochastics are in favor of a small bullish trend, as the slow stochastics are still in the oversold zone.
4) In the above chart, the MACD is still in the negative, but showing signs of a rise. The ADX is again converging, giving equal weight-age to the bulls and the bears.
5) The immediate resistance for an up move is in the 4950 5000 zone. The immediate support to the down trend is in the zone of 4850 4820 zone.
6) Considering the above, we have made our trading plan for the day as under
a) We will open long positions, near 4850 with a SL of 4810 and a target of 4940. We will add to our longs above 4890 only.
b) We will open short positions, near 4940 with a SL of 4980 and a target of 4850. We will add to our short positions only below 4800.
c) We will tighten our trailing stop losses as our trades enter profiting zones.
Today's market range we feel will be 4850 4950
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
|
Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.
