The bulls are in the drivers seat and may take the Nifty past 5070.
We were absent from the market yesterday, owing to our social engagements. However, we are back today and here are the technicals as of now.
1) The Elder Ray readings : Bull Power increases from +138 to +156 Bear Power reduces further from +89 to +124, indicating the steam in the Bullish uptrend in the near term is intact, however extreme caution must be exercised for opening up of fresh long positions at current levels.
2) The Nifty is still trading above all its key EMAs and also above its 50DMA and 100DMA which indicates that the bulls are in control of the market. However, the 200DMA is still pointing downwards, which should not be ignored.
3) The stochastics continue to be in the overbought zone.
4) In the above chart, the Nifty continues to touch the upper Bollinger Band and that is an indication that the up-move may be nearing its end. The MACD s still Bullish however the ADX is indicating that the up-move may continue, but its sustainability is reducing.
5) Considering the above, our trading plan for the day is as under.
a) Around 5040, we will open fresh short positions with a SL of 5070 and a target of 4990. We will add to these long positions only below 4965.
b) Around 5005, we will open fresh long positions with a SL of 4985 and a target of 5065. We will add to these long positions only above 5080.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
We were absent from the market yesterday, owing to our social engagements. However, we are back today and here are the technicals as of now.
1) The Elder Ray readings : Bull Power increases from +138 to +156 Bear Power reduces further from +89 to +124, indicating the steam in the Bullish uptrend in the near term is intact, however extreme caution must be exercised for opening up of fresh long positions at current levels.
2) The Nifty is still trading above all its key EMAs and also above its 50DMA and 100DMA which indicates that the bulls are in control of the market. However, the 200DMA is still pointing downwards, which should not be ignored.
3) The stochastics continue to be in the overbought zone.
4) In the above chart, the Nifty continues to touch the upper Bollinger Band and that is an indication that the up-move may be nearing its end. The MACD s still Bullish however the ADX is indicating that the up-move may continue, but its sustainability is reducing.
5) Considering the above, our trading plan for the day is as under.
a) Around 5040, we will open fresh short positions with a SL of 5070 and a target of 4990. We will add to these long positions only below 4965.
b) Around 5005, we will open fresh long positions with a SL of 4985 and a target of 5065. We will add to these long positions only above 5080.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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