Huge volatility could be seen on the Nifty prior to expiry
As discussed in our last post, the Bulls exhibited their full control over the Nifty, and recovered all the intra-day losses to close the Nifty with a gain of 30 points. The Nifty opened with a gap up and the Bears were unable to pull down the Nifty to those gaps. Now we have three runaway gaps unfilled in this current series, which could play a roadblock to this Bull run.
1) The Elder Ray readings : Bull Power rises from +156 to +171 Bear Power also rises from +124 to +111 indicating that the market is currently in no man's land. However the Bulls are still strong and the Bears have a huge challenge to get back into their own territory.
2) The Nifty is trading well above its key EMAs and also above its 50 & 100 DMAs.
3) The stochastics are still in the overbought zone, and have remained their now for 9 consecutive trading sessions. It is high time for the Nifty to exhibit a downtrend now.
4) In the above chart, the Nifty is trading since last 4 sessions touching the upper Bollinger Band. The volumes on this rise are increasing. The MACD is also rising and the ADX is suggesting a continuation of the uptrend.
5) Considering the above, our trading plan for the day is as under
a) Around 5080, we will open fresh short positions with a SL of 5105 and a target of 5010. We will add to these short positions only below 4965.
b) Around 5005, we will open fresh long positions with a SL of 4990 and a target of 5075. We will add to these long positions only above 5015.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, the Bulls exhibited their full control over the Nifty, and recovered all the intra-day losses to close the Nifty with a gain of 30 points. The Nifty opened with a gap up and the Bears were unable to pull down the Nifty to those gaps. Now we have three runaway gaps unfilled in this current series, which could play a roadblock to this Bull run.
1) The Elder Ray readings : Bull Power rises from +156 to +171 Bear Power also rises from +124 to +111 indicating that the market is currently in no man's land. However the Bulls are still strong and the Bears have a huge challenge to get back into their own territory.
2) The Nifty is trading well above its key EMAs and also above its 50 & 100 DMAs.
3) The stochastics are still in the overbought zone, and have remained their now for 9 consecutive trading sessions. It is high time for the Nifty to exhibit a downtrend now.
4) In the above chart, the Nifty is trading since last 4 sessions touching the upper Bollinger Band. The volumes on this rise are increasing. The MACD is also rising and the ADX is suggesting a continuation of the uptrend.
5) Considering the above, our trading plan for the day is as under
a) Around 5080, we will open fresh short positions with a SL of 5105 and a target of 5010. We will add to these short positions only below 4965.
b) Around 5005, we will open fresh long positions with a SL of 4990 and a target of 5075. We will add to these long positions only above 5015.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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