The Nifty is like to still be volatile, as the next trend tries to emerge.
As discussed yesterday, it was a volatile day, with the Nifty opening at a high and then immediately hitting roadblocks. However, the Bulls were able to successfully defend the previous day's lows and were able to maintain their positive momentum at the end of the day. Today the Nifty is likely to open slightly in the negative and a range bound volatility could be on for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +134 Bear Power reduces from +41 to +72 indicating that the Bulls are in control as of now. However, to retain their momentum, the Bulls will have to cross 5510 intraday. To maintain their space in their own territory, the Bulls will have to defend 5380, failing which, the Bears will regain their lost territory.
2) The Nifty is trading above its key EMAs and key DMAs. All of them have started pointing upwards, indicating that the current trend is in favor of the Bulls.
3) The stochastics are almost touching the overbought zone, indicating that a trend reversal might be lurking round the corner.
4) In the above chart, the MACD is showing a positive divergence, which is suggesting that the Bulls are in favor. The Parabolic SAR continues with its Buy signal. However, the ADX is suggesting a range bound movement, with a bias towards up-move.
5) Considering the above, our trading plan for the day is as under.
a) Around 5430, we will open fresh long positions with a SL of 5410 and a target of 5500. We will add to these long positions above 5520.
b) Around 5500, we will open fresh short positions with a SL of 5515 and a target of 5430. We will add to these short positions below 5410.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it was a volatile day, with the Nifty opening at a high and then immediately hitting roadblocks. However, the Bulls were able to successfully defend the previous day's lows and were able to maintain their positive momentum at the end of the day. Today the Nifty is likely to open slightly in the negative and a range bound volatility could be on for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +134 Bear Power reduces from +41 to +72 indicating that the Bulls are in control as of now. However, to retain their momentum, the Bulls will have to cross 5510 intraday. To maintain their space in their own territory, the Bulls will have to defend 5380, failing which, the Bears will regain their lost territory.
2) The Nifty is trading above its key EMAs and key DMAs. All of them have started pointing upwards, indicating that the current trend is in favor of the Bulls.
3) The stochastics are almost touching the overbought zone, indicating that a trend reversal might be lurking round the corner.
4) In the above chart, the MACD is showing a positive divergence, which is suggesting that the Bulls are in favor. The Parabolic SAR continues with its Buy signal. However, the ADX is suggesting a range bound movement, with a bias towards up-move.
5) Considering the above, our trading plan for the day is as under.
a) Around 5430, we will open fresh long positions with a SL of 5410 and a target of 5500. We will add to these long positions above 5520.
b) Around 5500, we will open fresh short positions with a SL of 5515 and a target of 5430. We will add to these short positions below 5410.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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