Nifty ready to soar again as the Bulls march on almost unstoppable now.
As discussed yesterday, it was time for caution, as the Bulls booked some profit but never let the Nifty drift down below 5485. It has now become a case of the last of the Bears getting squeezed out, and if that be the case, the Nifty may well soar high above its all time highs in a very short period now.
1) The Elder Ray readings : Bull Power reduces from +208 to +171 Bear Power increases from +127 to +123, indicating that even during sessions when the Bulls are taking rest, the Bears are unable to topple them, making it an even strong case for the Bulls.
2) The Nifty continues to trade well above its key EMAs and key DMAs. After yesterday's trade, even the 200DMA which was till now falling, has now started to climb up. It had started to fall down during May 2011. This confirms that the major trend now is bullish.
3) The stochastics continue to be in the overbought zone and are not showing any signs of coming down.
4) In the above chart, the volumes are falling in yesterday's minor cut in the Nifty, indicating no participation from sellers. The MACD continues to rise, and the -ADX continues to touch the bottom. These are all indications that the Bears will have a very very tough task ahead.
5) Considering the above, our trading plan for the day is as under,
a) Around 5540, we will open fresh long positions with a SL of 5510 and a target of 5600. We will add to these long positions only above 5625.
b) Around 5605, we will open fresh short positions with a SL of 5620 and a target of 5550. We will add to these short positions only below 5510.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it was time for caution, as the Bulls booked some profit but never let the Nifty drift down below 5485. It has now become a case of the last of the Bears getting squeezed out, and if that be the case, the Nifty may well soar high above its all time highs in a very short period now.
1) The Elder Ray readings : Bull Power reduces from +208 to +171 Bear Power increases from +127 to +123, indicating that even during sessions when the Bulls are taking rest, the Bears are unable to topple them, making it an even strong case for the Bulls.
2) The Nifty continues to trade well above its key EMAs and key DMAs. After yesterday's trade, even the 200DMA which was till now falling, has now started to climb up. It had started to fall down during May 2011. This confirms that the major trend now is bullish.
3) The stochastics continue to be in the overbought zone and are not showing any signs of coming down.
4) In the above chart, the volumes are falling in yesterday's minor cut in the Nifty, indicating no participation from sellers. The MACD continues to rise, and the -ADX continues to touch the bottom. These are all indications that the Bears will have a very very tough task ahead.
5) Considering the above, our trading plan for the day is as under,
a) Around 5540, we will open fresh long positions with a SL of 5510 and a target of 5600. We will add to these long positions only above 5625.
b) Around 5605, we will open fresh short positions with a SL of 5620 and a target of 5550. We will add to these short positions only below 5510.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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