Nifty may trade within a narrow range with a upward bias.
As discussed yesterday, the bullish trend continued on the Nifty, and amidst a narrow trading range the Nifty closed with a modest gain of 9 points. Today, given the global cues, the Nifty is likely to open flat to positive, and our focus will be to see whether a breakout occurs, and if it does occur, then in which direction.
1) The Elder Ray readings : Bull Power reduces from +165 to +140 Bear Power increases from +78 to +70, indicating that it will be difficult for the Bulls to breakout over the recent highs, as there power has been reducing consistently since last 4 trading sessions.
2) The Nifty continues to trade well above all its key EMAs and DMAs.
3) The stochastics too continue to be in the overbought zone and are not giving any signals of a breakdown yet.
4) In the above chart, the volumes have been depleting consistently for the last 4 trading sessions, indicating lack of participation while the Nifty has been holding its highs. The MACD histogram is falling but is still in the positive, indicating that the up-move might be nearing its end. The ADX on the other hand indicates a slowing in the up-move, but negates any strength in the down move.
5) Considering the above, our trading plan for the day is as under.
a) Above 5350, we will open fresh long positions with a SL of 5320 and a target of 5420. We will add to these long positions only above 5455.
b) Around 5430, we will open fresh short positions with a SL of 5460 and a target of 5385. We will add to these short positions only below 5340.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the bullish trend continued on the Nifty, and amidst a narrow trading range the Nifty closed with a modest gain of 9 points. Today, given the global cues, the Nifty is likely to open flat to positive, and our focus will be to see whether a breakout occurs, and if it does occur, then in which direction.
1) The Elder Ray readings : Bull Power reduces from +165 to +140 Bear Power increases from +78 to +70, indicating that it will be difficult for the Bulls to breakout over the recent highs, as there power has been reducing consistently since last 4 trading sessions.
2) The Nifty continues to trade well above all its key EMAs and DMAs.
3) The stochastics too continue to be in the overbought zone and are not giving any signals of a breakdown yet.
4) In the above chart, the volumes have been depleting consistently for the last 4 trading sessions, indicating lack of participation while the Nifty has been holding its highs. The MACD histogram is falling but is still in the positive, indicating that the up-move might be nearing its end. The ADX on the other hand indicates a slowing in the up-move, but negates any strength in the down move.
5) Considering the above, our trading plan for the day is as under.
a) Above 5350, we will open fresh long positions with a SL of 5320 and a target of 5420. We will add to these long positions only above 5455.
b) Around 5430, we will open fresh short positions with a SL of 5460 and a target of 5385. We will add to these short positions only below 5340.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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