Nifty to remain largely range bound as key events are awaited.
Yesterday, we suggested, "Beware of the whipsaw" and it proved apt for the trading session. The Nifty opened with a large up gap of 86 points, and immediately dwindled down before one could blink an eye. It whipsawed the entire day, before closing with modest gains of 26 points. Today, the Nifty is likely to open flat and once more likely to gyrate within the current trading range of 5250 to 5400.
1) The Elder Ray readings : Bull Power rises from +10 to +86 Bear Power falls from -41 to -9 indicating that the Bears have started weakening but are still safe in their negative zone and cannot be counted out as yet.
2) The Nifty is trading well above all its key EMAs and key DMAs now, and this indicates that any dips now should be used to cut outstanding short positions if any.
3) The Stochastics are now in the neutral zone just above the oversold zone and are pointing upwards.
4) In the above chart, the volumes have only just slightly increased in yesterday's fall. The MACD is still in the positive and falling. The Histogram is rising. Both indicating indecision among market participants. The ADX too is indicating a weak trend and is supportive of a range bound trade in the Nifty.
5) Considering the above, our trading plan for the day is as under.
a) Around 5335, 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 5440.
b) Around 5400, we will open fresh short positions with a SL of 5420 and a target of 5440. We will add to these short positions only below 5305.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we suggested, "Beware of the whipsaw" and it proved apt for the trading session. The Nifty opened with a large up gap of 86 points, and immediately dwindled down before one could blink an eye. It whipsawed the entire day, before closing with modest gains of 26 points. Today, the Nifty is likely to open flat and once more likely to gyrate within the current trading range of 5250 to 5400.
1) The Elder Ray readings : Bull Power rises from +10 to +86 Bear Power falls from -41 to -9 indicating that the Bears have started weakening but are still safe in their negative zone and cannot be counted out as yet.
2) The Nifty is trading well above all its key EMAs and key DMAs now, and this indicates that any dips now should be used to cut outstanding short positions if any.
3) The Stochastics are now in the neutral zone just above the oversold zone and are pointing upwards.
4) In the above chart, the volumes have only just slightly increased in yesterday's fall. The MACD is still in the positive and falling. The Histogram is rising. Both indicating indecision among market participants. The ADX too is indicating a weak trend and is supportive of a range bound trade in the Nifty.
5) Considering the above, our trading plan for the day is as under.
a) Around 5335, 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 5440.
b) Around 5400, we will open fresh short positions with a SL of 5420 and a target of 5440. 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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