Nifty refuses to fall amidst mixed signals.
As discussed yesterday, the upward bias remained active throughout the session, with the Nifty trying to force its way up at the very fag end of the day. We had also mentioned that the focus should be on whether the Nifty is able to break out of the current range and in which direction. That focus still remains as the Nifty is still within that range.
1) The Elder Ray readings : Bull Power reduces from +140 to +127 Bear Power also reduces from +70 to +77, indicating that the Nifty could again be range bound with a positive bias.
2) The Nifty continues to trade above its key EMAs and key DMAs. However, the 200 DMA is still pointing downwards, indicating that the up-move might be restricted.
3) The ATR has now reduced from levels of about 120 in Dec 2011 to levels of around 80. This confirms that the volatility in the market has decreased considerably.
4) The stochastics continue to be in the overbought zone.
5) In the above chart, the volumes are still low in the modest rise in the Nifty yesterday. The MACD histogram continues to fall but is still in the positive. The ADX is also indicating that there is loss of momentum in both the up and the down moves.
6) Considering the above, our trading plan for the day is as under
a) Above 5410, we will open fresh long positions with a SL of 5385 and a target of 5455. We will add to these long positions only above 5480.
b) Below 5380, we will open fresh short positions with a SL of 5410 and a target of 5330. We will add to these short positions only below 5305.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the upward bias remained active throughout the session, with the Nifty trying to force its way up at the very fag end of the day. We had also mentioned that the focus should be on whether the Nifty is able to break out of the current range and in which direction. That focus still remains as the Nifty is still within that range.
1) The Elder Ray readings : Bull Power reduces from +140 to +127 Bear Power also reduces from +70 to +77, indicating that the Nifty could again be range bound with a positive bias.
2) The Nifty continues to trade above its key EMAs and key DMAs. However, the 200 DMA is still pointing downwards, indicating that the up-move might be restricted.
3) The ATR has now reduced from levels of about 120 in Dec 2011 to levels of around 80. This confirms that the volatility in the market has decreased considerably.
4) The stochastics continue to be in the overbought zone.
5) In the above chart, the volumes are still low in the modest rise in the Nifty yesterday. The MACD histogram continues to fall but is still in the positive. The ADX is also indicating that there is loss of momentum in both the up and the down moves.
6) Considering the above, our trading plan for the day is as under
a) Above 5410, we will open fresh long positions with a SL of 5385 and a target of 5455. We will add to these long positions only above 5480.
b) Below 5380, we will open fresh short positions with a SL of 5410 and a target of 5330. We will add to these short positions only below 5305.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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