Having the Nifty risen consistently throughout the month, expect volatility today.
As discussed yesterday, all eyes were on the RBI monetary policy, and the Nifty traded nervously before that announcement, after which the Bulls never let go. Today being the expiry of the series, some volatility is expected on the bourses, although the trend is likely to have a positive bias.
1) The Elder Ray readings : Bull Power increases from +144 to +196 Bear Power also increases from +106 to +104, indicating that the Bulls have run away now and the Bears are caught watching.
2) On the EMA front, the charts remain the same with the Nifty trading above all its key EMAs and also above its 50 & 100 DMAs. The 200 DMA stands at 5214 and that will be a key level to watch out for now.
3) The stochastics have had a extended stay in the overbought zone. However, they are showing no signs of retreat as yet.
4) In the above chart, the volumes have increased in yesterday's up-move. The MACD is touching its peak and the ADX is also signalling a uptrend, however with the rising neutral ADX, the sustainability of this uptrend will be questionable going forward.
5) Considering the above, our trading plan for the day is as under,
a) Above 5080, we will open fresh long positions with a SL of 5060 and a target of 5140. We will add to these long positions only above 5175.
b) Around 5170, we will open fresh short positions with a SL of 5185 and a target of 5100. We will add to these short positions only below 5055.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, all eyes were on the RBI monetary policy, and the Nifty traded nervously before that announcement, after which the Bulls never let go. Today being the expiry of the series, some volatility is expected on the bourses, although the trend is likely to have a positive bias.
1) The Elder Ray readings : Bull Power increases from +144 to +196 Bear Power also increases from +106 to +104, indicating that the Bulls have run away now and the Bears are caught watching.
2) On the EMA front, the charts remain the same with the Nifty trading above all its key EMAs and also above its 50 & 100 DMAs. The 200 DMA stands at 5214 and that will be a key level to watch out for now.
3) The stochastics have had a extended stay in the overbought zone. However, they are showing no signs of retreat as yet.
4) In the above chart, the volumes have increased in yesterday's up-move. The MACD is touching its peak and the ADX is also signalling a uptrend, however with the rising neutral ADX, the sustainability of this uptrend will be questionable going forward.
5) Considering the above, our trading plan for the day is as under,
a) Above 5080, we will open fresh long positions with a SL of 5060 and a target of 5140. We will add to these long positions only above 5175.
b) Around 5170, we will open fresh short positions with a SL of 5185 and a target of 5100. We will add to these short positions only below 5055.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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