After a big leap, the Nifty is waiting for the next big move.
As discussed yesterday, the up-move on the Nifty continued, but was met with resistance at higher levels, and the Nifty was not able to topple 4880. Today, the markets are likely to open flat and are likely to consolidate again.
1) The Elder Ray readings : Bull Power rises from +108 to +113 Bear Power reduces from +20 to +77, indicating that the Bears are now in the opponents territory, and the Bulls have grasped their breath, after a big effort two days ago.
2) The key EMAs are pointing upwards and are also indicating a buy signal for the short term. However, the Nifty is trading just below its 50DMA which is at 4867. This is a key level to watch out for.
3) The stochastics are deep in the overbought zone and the fast stochastics are pointing downwards. However, again it must be noted, that the stochastics can remain in the overbought zone over a prolonged period.
4) In the above chart, the volumes have increased in yesterday's closed ranged market, indicating build up of shorts in the system. The Nifty is touching the upper Bollinger Band, indicating that the market is in the overbought zone. The ADX is signalling a Buy.
5) Considering the above, we find that there is not enough head room for the Nifty to suggest opening of fresh longs. Also there are no indications that fresh shorts can be opened as yet. Hence, we will refrain from trading the Nifty for today and wait for a clear signal at the end of the day.
Happy Trading !!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the up-move on the Nifty continued, but was met with resistance at higher levels, and the Nifty was not able to topple 4880. Today, the markets are likely to open flat and are likely to consolidate again.
1) The Elder Ray readings : Bull Power rises from +108 to +113 Bear Power reduces from +20 to +77, indicating that the Bears are now in the opponents territory, and the Bulls have grasped their breath, after a big effort two days ago.
2) The key EMAs are pointing upwards and are also indicating a buy signal for the short term. However, the Nifty is trading just below its 50DMA which is at 4867. This is a key level to watch out for.
3) The stochastics are deep in the overbought zone and the fast stochastics are pointing downwards. However, again it must be noted, that the stochastics can remain in the overbought zone over a prolonged period.
4) In the above chart, the volumes have increased in yesterday's closed ranged market, indicating build up of shorts in the system. The Nifty is touching the upper Bollinger Band, indicating that the market is in the overbought zone. The ADX is signalling a Buy.
5) Considering the above, we find that there is not enough head room for the Nifty to suggest opening of fresh longs. Also there are no indications that fresh shorts can be opened as yet. Hence, we will refrain from trading the Nifty for today and wait for a clear signal at the end of the day.
Happy Trading !!
For cash market recommendations see our Daily Pre Market calls on NSE
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