As we enter the expiry week, the Nifty is still clueless on direction, stuck in a range.
As discussed in our last post, we saw the bullish undertones on the Nifty, for almost the entire trading session on Friday. Even after the 'freak trade' that dragged the Nifty down, the Nifty was able to charge back and close at a respectable level of 5291, much higher than the day's lows. Today, the Nifty is likely to open flat and is likely to drift listlessly within its confined range.
1) The Elder Ray readings : Bull Power reduces from +66 to +58 Bear Power rises from +15 to -33 indicating that both the Bulls and Bears are now safe in their own zones, with the Bears having regained their lost territory. For today, the Bulls need to cross over 5340 and the Bears need to drag the Nifty below 5245 to retain their respective momentum. These could well become the trading boundaries for the day.
2) The Nifty is trading just above its key EMAs which are clustered around 5280. The 50 DMA which is at 5337 could act as a major resistance to any up move.
3) The stochastics are still in the neutral zone, but are now pointing downwards.
4) In the above chart, the volumes have been static with the Nifty actually going nowhere in the past three trading sessions, indicating lack of participation. The MACD is in the Negative and is horizontal, negating any directional bias. The ADX too is pointing to a direction less market and is showing no bias either to the Bulls or to the Bears. The Parabolic SAR is continuing with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5340, we will open fresh short positions with a SL of 5360 and a target of 5270. We will add to these short positions only below 5240.
b) Around 5260, we will open fresh long positions with a SL of 5240 and a target of 5315. We will add to these long positions only above 5365.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, we saw the bullish undertones on the Nifty, for almost the entire trading session on Friday. Even after the 'freak trade' that dragged the Nifty down, the Nifty was able to charge back and close at a respectable level of 5291, much higher than the day's lows. Today, the Nifty is likely to open flat and is likely to drift listlessly within its confined range.
1) The Elder Ray readings : Bull Power reduces from +66 to +58 Bear Power rises from +15 to -33 indicating that both the Bulls and Bears are now safe in their own zones, with the Bears having regained their lost territory. For today, the Bulls need to cross over 5340 and the Bears need to drag the Nifty below 5245 to retain their respective momentum. These could well become the trading boundaries for the day.
2) The Nifty is trading just above its key EMAs which are clustered around 5280. The 50 DMA which is at 5337 could act as a major resistance to any up move.
3) The stochastics are still in the neutral zone, but are now pointing downwards.
4) In the above chart, the volumes have been static with the Nifty actually going nowhere in the past three trading sessions, indicating lack of participation. The MACD is in the Negative and is horizontal, negating any directional bias. The ADX too is pointing to a direction less market and is showing no bias either to the Bulls or to the Bears. The Parabolic SAR is continuing with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5340, we will open fresh short positions with a SL of 5360 and a target of 5270. We will add to these short positions only below 5240.
b) Around 5260, we will open fresh long positions with a SL of 5240 and a target of 5315. We will add to these long positions only above 5365.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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