As the technicals point to a sideways market, the Nifty may see a volatile expiry.
On Friday, we had suggested "Choppiness to continue", and we saw the Nifty grinding within a very small trading range of 46 points between 4889 and 4936. Today, the Nifty is likely to open flat with a slightly negative bias, but is expected to again exhibit a choppy trading session with a slightly widened trading range.
1) The Elder Ray readings : Bull Power rises from -4 to +2 Bear Power reduces from -106 to -45, indicating that the Bears are now losing momentum at a high pace, but the Bulls are not able to capitalize at the same speed. For today, the Bulls need to overcome 4930 to remain in the positive zone, whereas the Bears need to breach the Nifty below 4885 to maintain their downwards momentum.
2) The Nifty continues to trade below its key DMAs and its 21 and 13 EMA, but above its 8EMA.
3) The Stochastics are now out of the oversold zone, and are pointing horizontal.
4) In the above chart, the volumes have gone down with the Nifty going nowhere, highlighting the choppiness in the trade on the Nifty. The MACD is now about to rise with the histogram also coming in the positive, indicating that a up move is just round the corner. The ADX is suggesting that the trend momentum is coming down, and there is a slight bias towards 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) Around 4970, we will open fresh short positions with a SL of 4990 and a target of 4895. We will add to these short positions only below 4855.
b) Around 4870, we will open fresh long positions with a SL of 4855 and a target of 4915 and then 4960. We will add to these long positions only above 4990.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, we had suggested "Choppiness to continue", and we saw the Nifty grinding within a very small trading range of 46 points between 4889 and 4936. Today, the Nifty is likely to open flat with a slightly negative bias, but is expected to again exhibit a choppy trading session with a slightly widened trading range.
1) The Elder Ray readings : Bull Power rises from -4 to +2 Bear Power reduces from -106 to -45, indicating that the Bears are now losing momentum at a high pace, but the Bulls are not able to capitalize at the same speed. For today, the Bulls need to overcome 4930 to remain in the positive zone, whereas the Bears need to breach the Nifty below 4885 to maintain their downwards momentum.
2) The Nifty continues to trade below its key DMAs and its 21 and 13 EMA, but above its 8EMA.
3) The Stochastics are now out of the oversold zone, and are pointing horizontal.
4) In the above chart, the volumes have gone down with the Nifty going nowhere, highlighting the choppiness in the trade on the Nifty. The MACD is now about to rise with the histogram also coming in the positive, indicating that a up move is just round the corner. The ADX is suggesting that the trend momentum is coming down, and there is a slight bias towards 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) Around 4970, we will open fresh short positions with a SL of 4990 and a target of 4895. We will add to these short positions only below 4855.
b) Around 4870, we will open fresh long positions with a SL of 4855 and a target of 4915 and then 4960. We will add to these long positions only above 4990.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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