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Monday 13 February 2012

Nifty - 13 Feb 2012 - Bullish trend continues

Bullish up-trend may continue for now as the Bears are still weak.

After a few choppy sessions, the Nifty is still going strong, as the Bears have not been able to drag it down below 5325 effectively. Today, given the global cues, the Nifty is likely to open in the negative, and there will be a fair chance for the bears to suppress the Nifty. If they fail to do so, then the Bullish trend may continue and take the Nifty further out of reach of the Bears.

1) The Elder Ray readings : Bull Power reduces from +180 to +165 Bear Power increases from +95 to +78, indicating that the Bears are now withing a striking distance of safety and if they fail today, then they will have a lot of hard work in coming days.

2) The Nifty continues to trade above all its key EMAs and DMAs, the 8EMA at 5327 and the 13EMA at 5263 will act as key supports to this rally today.

3) The stochastics continue to be in the overbought zone without showing any signs of decline.



4) In the above chart, the volumes in Friday's consolidation have depleted. The Nifty is seen leaving the upper Bollinger Band, while the lower Band is rising steeply, indicating that the Bull run may still be intact. The MACD histogram is lowering but is still in the positive and the ADX is suggesting that the up-move and the down-move both are weakening,.

5) Considering the above, our trading plan for the day is as under

a) Around 5330, we will open fresh long positions with a SL of 5310 and a target of 5390. We will add to these long positions only above 5430.

b) Around 5395, we will open fresh short positions with a SL of 5415 and a target of 5340. We will add to these short positions only below 5300.

Happy Trading !!! 

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