It is time for caution as the Nifty may be near to topping out.
As discussed yesterday, the positive bias continued on the Nifty, with the Nifty opening with a positive gap up and then never ever looking back, to close with a whopping gain of 116 points. Today, given the global cues, the Nifty is likely to have a subdued opening and then a volatile session may be witnessed. A close below 5460 will provide the much needed tonic to the Bears.
1) The Elder Ray readings : Bull Power increases from +127 to +208 Bear Power reduces from +77 to +127 indicating that the Bulls are still in control and the Bears have almost resigned.
2) The Nifty continues to trade well above its key EMAs and key DMAs.
3) The stochastics too continue to be in the overbought zone and are showing no indications of dropping out of that zone.
4) In the above charts, the volumes have increased with a whopping rise in the Nifty confirming participatory interest. The MACD has started to rise again, indicating continuation of the Bull run. However, the ADX has now started indicating extremely unsustainable levels for the Bull run.
5) Considering the above, our trading plan for the day is as under
a) Above 5490, we will open fresh long positions with a SL of 5460 and a target of 5580. We will add to these long positions only above 5600.
b) Around 5580, we will open fresh short positions with a SL of 5605 and a target of 5500. We will add to these short positions only below 5460.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the positive bias continued on the Nifty, with the Nifty opening with a positive gap up and then never ever looking back, to close with a whopping gain of 116 points. Today, given the global cues, the Nifty is likely to have a subdued opening and then a volatile session may be witnessed. A close below 5460 will provide the much needed tonic to the Bears.
1) The Elder Ray readings : Bull Power increases from +127 to +208 Bear Power reduces from +77 to +127 indicating that the Bulls are still in control and the Bears have almost resigned.
2) The Nifty continues to trade well above its key EMAs and key DMAs.
3) The stochastics too continue to be in the overbought zone and are showing no indications of dropping out of that zone.
4) In the above charts, the volumes have increased with a whopping rise in the Nifty confirming participatory interest. The MACD has started to rise again, indicating continuation of the Bull run. However, the ADX has now started indicating extremely unsustainable levels for the Bull run.
5) Considering the above, our trading plan for the day is as under
a) Above 5490, we will open fresh long positions with a SL of 5460 and a target of 5580. We will add to these long positions only above 5600.
b) Around 5580, we will open fresh short positions with a SL of 5605 and a target of 5500. We will add to these short positions only below 5460.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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