With the Nifty hovering at resistances, a downtrend may emerge soon.
As discussed yesterday, the Nifty traded both-ways in an undecided market. Today, the Nifty is likely to open with a slight positive bias and may trade in a narrow range.
1) The Elder Ray readings : Bull Power reduces from +113 to +95 Bear Power rises from +77 to +30 Bulls will have to defend 4775 level to prevent the Bears from returning to their safe zone, making it a key level to watch out for.
2) The key EMAs are pointing upwards, and the Nifty is trading right between the EMAs and the DMAs.
3) The stochastics are in the overbought zone and have now remained in the overbought zone for 3 consecutive trading sessions.
4) In the above chart, the volumes have increased in yesterday's negative close. The Nifty is moving away from the upper Bollinger Band, suggesting the start of a down move. The MACD is rising still, pointing at the continuation of the current up-move. And the ADX is giving out a sustainable sell signal.
5) Considering the above, our trading plan for the day is as under
a) Above 4795, we will open fresh long positions with a SL of 4770 and a target of 4870. We will add to these long positions only above 4895.
b) Below 4880, we will open fresh short positions with a SL of 4890 and a target of 4795. We will add to these short positions only below 4765.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty traded both-ways in an undecided market. Today, the Nifty is likely to open with a slight positive bias and may trade in a narrow range.
1) The Elder Ray readings : Bull Power reduces from +113 to +95 Bear Power rises from +77 to +30 Bulls will have to defend 4775 level to prevent the Bears from returning to their safe zone, making it a key level to watch out for.
2) The key EMAs are pointing upwards, and the Nifty is trading right between the EMAs and the DMAs.
3) The stochastics are in the overbought zone and have now remained in the overbought zone for 3 consecutive trading sessions.
4) In the above chart, the volumes have increased in yesterday's negative close. The Nifty is moving away from the upper Bollinger Band, suggesting the start of a down move. The MACD is rising still, pointing at the continuation of the current up-move. And the ADX is giving out a sustainable sell signal.
5) Considering the above, our trading plan for the day is as under
a) Above 4795, we will open fresh long positions with a SL of 4770 and a target of 4870. We will add to these long positions only above 4895.
b) Below 4880, we will open fresh short positions with a SL of 4890 and a target of 4795. We will add to these short positions only below 4765.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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