With the Nifty hitting into resistance, a day of consolidation lies ahead
As discussed yesterday, the strong rally ran into resistance and the Nifty saw some profit booking at higher levels before closing with a minor loss of 15 points. Today, the Nifty is likely to open flat with a negative bias, but may find strong support around 4700 4685 levels and a strong resistance at 4760 4785 zone.
1) The Elder Ray readings :Bull Power increases from +61 to +65 and the Bear Power reduces from -36 to +11, indicating that the Bulls are gaining but with less force and that the Bears are now in the unsafe positive zone. This scenario points to a struggle for position between the Bulls and the Bears.
2) The Nifty is trading just above the 21EMA, however, the 8 13 and 21 EMAs are still stacked in favour of the Bears. The DMAs continue to point downwards.
3) The stochastics are nearing the overbought zone, indicating some more room for an up-move.
4) In the above chart, the volumes have started to increase with the Nifty not marching ahead, indicating a consolidation phase. The MACD is indicating strength for the up-move, whereas the ADX is suggesting that it is "no man's" market as yet.
5) Considering the above, our trading plan for the day is as under
a) Above 4705, we will initiate fresh long positions with a SL of 4685 and a target of 4765. We will add to these long positions only above 4815.
b) Around 4775, we will initiate fresh short positions with a SL of 4810 and a target of 4690. We will add to these short positions only below 4660.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the strong rally ran into resistance and the Nifty saw some profit booking at higher levels before closing with a minor loss of 15 points. Today, the Nifty is likely to open flat with a negative bias, but may find strong support around 4700 4685 levels and a strong resistance at 4760 4785 zone.
1) The Elder Ray readings :Bull Power increases from +61 to +65 and the Bear Power reduces from -36 to +11, indicating that the Bulls are gaining but with less force and that the Bears are now in the unsafe positive zone. This scenario points to a struggle for position between the Bulls and the Bears.
2) The Nifty is trading just above the 21EMA, however, the 8 13 and 21 EMAs are still stacked in favour of the Bears. The DMAs continue to point downwards.
3) The stochastics are nearing the overbought zone, indicating some more room for an up-move.
4) In the above chart, the volumes have started to increase with the Nifty not marching ahead, indicating a consolidation phase. The MACD is indicating strength for the up-move, whereas the ADX is suggesting that it is "no man's" market as yet.
5) Considering the above, our trading plan for the day is as under
a) Above 4705, we will initiate fresh long positions with a SL of 4685 and a target of 4765. We will add to these long positions only above 4815.
b) Around 4775, we will initiate fresh short positions with a SL of 4810 and a target of 4690. We will add to these short positions only below 4660.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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