In a truncated trading week, the Nifty stays up, but caution prevails.
As discussed yesterday, the Nifty drifted directionless within a narrow range of 50 points, in spite of previous day's bullish sentiment. However, action on the Nifty was muted yesterday, with low volumes. Today, the Nifty is likely to open positive, but again we could witness a range bound trade with Bullish undertones to it.
1) The Elder Ray readings : Bull Power rises from +40 to +57 Bear Power reduces from -64 to +4 indicating that the Bears have given up on their territory, even as the Bulls have remained steady almost. For today, the Bears need to breach 5265 to regain lost grounds and the Bulls need to cross over 5345 to maintain their momentum.
2) The Nifty is trading above its key EMAs which are pointing upwards, and the 100 and 200 DMAs. However, it is just below its 50DMA.
3) The stochastics are in the neutral zone, and are pointing upwards, confirming the Bullish undertones in the market.
4) In the above chart, the volumes have dried up, indicating lack of participation. The MACD is in the negative, but the fast MACD has turned up, signalling a bullish move might be developing. The ADX continues to signal a directionless market, with slight bias towards the up-move. The Parabolic SAR continues with its sell signal, but the Nifty has reached very close to the Parabolic SAR, and hence, it signals a time for caution, as the signal could either change or assert itself.
5) Considering the above, our trading plan for the day is as under.
a) Above 5310, we will open fresh long positions with a SL of 5285 and a target of 5365. We will add to these long positions only above 5395.
b) Around 5365, we will open fresh short positions with a SL of 5390 and a target of 5315. We will add to these short positions only below 5285.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty drifted directionless within a narrow range of 50 points, in spite of previous day's bullish sentiment. However, action on the Nifty was muted yesterday, with low volumes. Today, the Nifty is likely to open positive, but again we could witness a range bound trade with Bullish undertones to it.
1) The Elder Ray readings : Bull Power rises from +40 to +57 Bear Power reduces from -64 to +4 indicating that the Bears have given up on their territory, even as the Bulls have remained steady almost. For today, the Bears need to breach 5265 to regain lost grounds and the Bulls need to cross over 5345 to maintain their momentum.
2) The Nifty is trading above its key EMAs which are pointing upwards, and the 100 and 200 DMAs. However, it is just below its 50DMA.
3) The stochastics are in the neutral zone, and are pointing upwards, confirming the Bullish undertones in the market.
4) In the above chart, the volumes have dried up, indicating lack of participation. The MACD is in the negative, but the fast MACD has turned up, signalling a bullish move might be developing. The ADX continues to signal a directionless market, with slight bias towards the up-move. The Parabolic SAR continues with its sell signal, but the Nifty has reached very close to the Parabolic SAR, and hence, it signals a time for caution, as the signal could either change or assert itself.
5) Considering the above, our trading plan for the day is as under.
a) Above 5310, we will open fresh long positions with a SL of 5285 and a target of 5365. We will add to these long positions only above 5395.
b) Around 5365, we will open fresh short positions with a SL of 5390 and a target of 5315. We will add to these short positions only below 5285.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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