The Nifty has gone too far too fast and is likely to meet resistance ahead.
As discussed yesterday, the Nifty opened with a gap up and maintained its positive bias throughout the day. Yesterday, the second part of our plan b came into action straightaway and the entire session stuck to that scenario. During the current series, we have seen the Nifty rise sharply and then consolidate thrice. If that continues, today could well be the day of consolidation.
1) The Elder Ray readings : Bull Power rises from +81 to +152 Bear Power reduces from +28 to +81 indicating that the Bulls are in full control of the market and unless the Bears are able to break 4825, they will have hard times in this market. 4825 seems far away as of now.
2) The Nifty is now trading well above all its key EMAs and also above the 50 and the 100DMA. The 200DMA stands at 5233.
3) The stochastics are well and deeply in the overbought zone and have remained there for 8 consecutive sessions now, indicating that the bears could strike any moment now.
4) In the above chart, the volumes have increased in yesterday's rise, confirming the up trend. However, the Nifty has pierced the upper Bollinger Band, and it is time for caution in any long positions now. The MACD histogram is at its peak again cautioning to safeguard any long positions. However, the ADX is signaling strong momentum for the up-move.
5) Considering the above, our trading plan for the day is as under,
a) Around 5010, we will open fresh short positions with a SL of 5030 and a target of 4930. We will add to these short positions only below 4905.
b) Around 4925, we will open fresh long positions with a SL of 4900 and a target of 4990. We will add to these long positions only above 5040.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty opened with a gap up and maintained its positive bias throughout the day. Yesterday, the second part of our plan b came into action straightaway and the entire session stuck to that scenario. During the current series, we have seen the Nifty rise sharply and then consolidate thrice. If that continues, today could well be the day of consolidation.
1) The Elder Ray readings : Bull Power rises from +81 to +152 Bear Power reduces from +28 to +81 indicating that the Bulls are in full control of the market and unless the Bears are able to break 4825, they will have hard times in this market. 4825 seems far away as of now.
2) The Nifty is now trading well above all its key EMAs and also above the 50 and the 100DMA. The 200DMA stands at 5233.
3) The stochastics are well and deeply in the overbought zone and have remained there for 8 consecutive sessions now, indicating that the bears could strike any moment now.
4) In the above chart, the volumes have increased in yesterday's rise, confirming the up trend. However, the Nifty has pierced the upper Bollinger Band, and it is time for caution in any long positions now. The MACD histogram is at its peak again cautioning to safeguard any long positions. However, the ADX is signaling strong momentum for the up-move.
5) Considering the above, our trading plan for the day is as under,
a) Around 5010, we will open fresh short positions with a SL of 5030 and a target of 4930. We will add to these short positions only below 4905.
b) Around 4925, we will open fresh long positions with a SL of 4900 and a target of 4990. We will add to these long positions only above 5040.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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