AD Code

Tuesday 21 February 2012

Nifty - 21 Feb 2012 - Upmove to continue

The Nifty uptrend seems likely to continue unabated.

As discussed on Friday, it was Bulls all the way, throughout the session, with the Nifty never ever coming below its opening mark and then closing with a gain of 42 points. Today, given the global cues, the Nifty is likely to open even higher and then stay afloat for yet another winning day.

1) The Elder Ray readings : Bull Power rises from +171 to +217 Bear Power reduces from +123 to +156 indicating that there is really no point in trading with the Bears or expecting the Bears to move in for the kill, unless they are able to close the Nifty below the previous day's low for two consecutive days.

2) The Nifty continues to trade well above the 200 DMA and all its other key EMAs and key DMAs. 

3) The stochastics continue to remain in the overbought zone with no signs of drifting downwards.



4) In the above chart, the volumes keep on increasing with the Nifty showing no signs of falling, indicating the strength in the upwards momentum. The MACD is reaching the peak, but is showing no weakness, while the ADX maintains its indication of a strengthening up-move.

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

a) Above 5575, we will open fresh long positions with a SL of 5550 and a target of 5635. We will add to these long positions only above 5675.

b) Around 5655, we will open fresh short positions with a SL of 5680 and a target of 5580. We will add to these short positions only below 5545.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

No comments:

Post a Comment

Please add your comments here. Comments will be moderated.

Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.