Aided by short covering, the Bulls have staged a up move that can sustain.
Yesterday, we had suggested "Volatile expiry week ahead", and we saw hints of that volatility during the trading session yesterday, when the Nifty first struggled to cross the hurdles near 4970 and kept on coming back from there. However, the Bears could not breach the day low even once during the entire trading session, and that is where they lost the battle. The Bulls then took the Nifty past the resistance and closed it above at 4986. Today, again we could see a bout of volatility between 4950 and 5050 levels.
1) The Elder Ray readings : Bull Power increases from +2 to +54 Bear Power reduces from -45 to -10, indicating that now both the Bulls and the Bears are in their respective zones, and that could increase the volatility in the trade. For today, the Bulls need to overcome 5005 to maintain their rising momentum, whereas the Bears need to breach below 4940 to remain in their safe zone.
2) The Nifty is now above all its key EMAs but is below all its key DMAs.
3) The stochastics are in the neutral zone, and are pointing upwards. The fast stochastics are almost about to touch the overbought zone.
4) In the above chart, the volumes have decreased in yesterday's rise on the Nifty, making it slightly susceptible. The MACD has now shown a positive divergence while being in the negative zone, indicating a strong support to the up move. The ADX is also now shifting bias towards the Bulls, but the trend momentum is coming down. The Parabolic SAR continues to hold its buy signal.
5) Considering the above, our trading plan for the day is as under,
a) Above 4955, we will open fresh long positions with a SL of 4930 and a target of 5020. We will add to these long positions only above 5050.
b) Around 5025, we will open fresh short positions with a SL of 5050 and a target of 4950. We will add to these short positions only below 4930.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we had suggested "Volatile expiry week ahead", and we saw hints of that volatility during the trading session yesterday, when the Nifty first struggled to cross the hurdles near 4970 and kept on coming back from there. However, the Bears could not breach the day low even once during the entire trading session, and that is where they lost the battle. The Bulls then took the Nifty past the resistance and closed it above at 4986. Today, again we could see a bout of volatility between 4950 and 5050 levels.
1) The Elder Ray readings : Bull Power increases from +2 to +54 Bear Power reduces from -45 to -10, indicating that now both the Bulls and the Bears are in their respective zones, and that could increase the volatility in the trade. For today, the Bulls need to overcome 5005 to maintain their rising momentum, whereas the Bears need to breach below 4940 to remain in their safe zone.
2) The Nifty is now above all its key EMAs but is below all its key DMAs.
3) The stochastics are in the neutral zone, and are pointing upwards. The fast stochastics are almost about to touch the overbought zone.
4) In the above chart, the volumes have decreased in yesterday's rise on the Nifty, making it slightly susceptible. The MACD has now shown a positive divergence while being in the negative zone, indicating a strong support to the up move. The ADX is also now shifting bias towards the Bulls, but the trend momentum is coming down. The Parabolic SAR continues to hold its buy signal.
5) Considering the above, our trading plan for the day is as under,
a) Above 4955, we will open fresh long positions with a SL of 4930 and a target of 5020. We will add to these long positions only above 5050.
b) Around 5025, we will open fresh short positions with a SL of 5050 and a target of 4950. We will add to these short positions only below 4930.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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