Nifty may continue trading within a tight range.
As discussed yesterday, it was a day of consolidation on the Nifty, with the Bulls failing to take it above the previous day's high and the Bears failing to break the previous day's low. Today, the Nifty is likely to open with a negative bias, but buying could emerge at lower levels.
1) The Elder Ray readings : Bull Power reduces from +65 to +58 Bear Power increases from +11 to +8. This is giving mixed indications that the Bulls are losing momentum but are safe in the positive zone, whereas the Bears are gaining strength but are in the opponents territory.
2) The EMAs are pointing upwards and the Nifty is trading above key EMAs, however, the EMAs are stacked in favour of the Bears, indicating a downtrend may resume soon. The DMAs are pointing downwards.
3) The stochastics are almost touching the overbought zone.
4) In the above chart, the Bollinger Bands are squeezing, indicating consolidation phase. The MACD is giving out a positive divergence, whereas the ADX is indicating a directionless market as of now.
5) Based on the above, our trading plan for the day is as under
a) Above 4725, we will open fresh long positions with a SL of 4710 and a target of 4770. We will add to these positions only above 4790.
b) Around, 4785, we will open fresh short positions with a SL of 4790 and a target of 4730. We will add to these short positions only below 4700.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it was a day of consolidation on the Nifty, with the Bulls failing to take it above the previous day's high and the Bears failing to break the previous day's low. Today, the Nifty is likely to open with a negative bias, but buying could emerge at lower levels.
1) The Elder Ray readings : Bull Power reduces from +65 to +58 Bear Power increases from +11 to +8. This is giving mixed indications that the Bulls are losing momentum but are safe in the positive zone, whereas the Bears are gaining strength but are in the opponents territory.
2) The EMAs are pointing upwards and the Nifty is trading above key EMAs, however, the EMAs are stacked in favour of the Bears, indicating a downtrend may resume soon. The DMAs are pointing downwards.
3) The stochastics are almost touching the overbought zone.
4) In the above chart, the Bollinger Bands are squeezing, indicating consolidation phase. The MACD is giving out a positive divergence, whereas the ADX is indicating a directionless market as of now.
5) Based on the above, our trading plan for the day is as under
a) Above 4725, we will open fresh long positions with a SL of 4710 and a target of 4770. We will add to these positions only above 4790.
b) Around, 4785, we will open fresh short positions with a SL of 4790 and a target of 4730. We will add to these short positions only below 4700.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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