The strong rally on the Nifty may well get arrested soon as it runs into resistance.
Unlike our discussion yesterday, the Bears gave away much of their control, and the Bulls took off with a strong rally of about 90 points adding on to the positive gap of about 40 points. Today, given the global cues, the Nifty is likely to open in the positive, but selling pressure may be seen soon, and the Bulls have their work cut out in defending their long positions.
1) The Elder Ray readings : Bull Power increases from -57 to +61 Bear Power reduces from -115 to -36. The Bulls have recovered their lost ground and are in the positive. However, the Bears are still in their zone and cannot be ignored as yet. A huge increase in volatility may be on the cards as of now.
2) The Nifty has closed above its key EMAs but is still trading below key DMAs.
3) The fast stochastics are almost touching the overbought zone. However, the slow stochastics are still in the neutral zone and are trailing well behind, indicating that the rally may lose strength but can continue for a couple of sessions still.
4) In the above chart, the volumes have increased in yesterday's rally confirming continuation of the up-move. The MACD is showing an abrupt rise, raising suspicion on the sustainability of the up-move. The ADX is still continuing with its sell on rally signal and has not given out a buy signal as yet.
5) Considering the above, our trading plan for the day is as under
a) Above 4755, we will open fresh long positions with a SL of 4740 and a target of 4810. We will add to these long positions only above 4840.
b) Below 4820, we will open fresh short positions with a SL of 4835 and a target of 4710. We will add to these short positions only below 4685.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Unlike our discussion yesterday, the Bears gave away much of their control, and the Bulls took off with a strong rally of about 90 points adding on to the positive gap of about 40 points. Today, given the global cues, the Nifty is likely to open in the positive, but selling pressure may be seen soon, and the Bulls have their work cut out in defending their long positions.
1) The Elder Ray readings : Bull Power increases from -57 to +61 Bear Power reduces from -115 to -36. The Bulls have recovered their lost ground and are in the positive. However, the Bears are still in their zone and cannot be ignored as yet. A huge increase in volatility may be on the cards as of now.
2) The Nifty has closed above its key EMAs but is still trading below key DMAs.
3) The fast stochastics are almost touching the overbought zone. However, the slow stochastics are still in the neutral zone and are trailing well behind, indicating that the rally may lose strength but can continue for a couple of sessions still.
4) In the above chart, the volumes have increased in yesterday's rally confirming continuation of the up-move. The MACD is showing an abrupt rise, raising suspicion on the sustainability of the up-move. The ADX is still continuing with its sell on rally signal and has not given out a buy signal as yet.
5) Considering the above, our trading plan for the day is as under
a) Above 4755, we will open fresh long positions with a SL of 4740 and a target of 4810. We will add to these long positions only above 4840.
b) Below 4820, we will open fresh short positions with a SL of 4835 and a target of 4710. We will add to these short positions only below 4685.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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