With the Bulls failing to cross resistance at 5025, the expiry whipsaw is about to start.
As discussed yesterday, "The Bulls regain their footing", and as such the Nifty traded in the positive for almost the entire session. However, the Nifty closed below its opening mark, which is a signal of Bulls getting exhausted at some point. The Bears however, are yet to rise and strike. This, when added to the fact that yesterday was a NR7 day, makes up for a scenario, where the whipsaw may be unleashed.
1) The Elder Ray readings : Bull Power rises from +54 to +72 Bear Power reduces from -10 to +34, indicating that the Bears have now lost their footing and have to be quick to strike. For today, the Bulls need to surpass 5030 to maintain their upwards momentum, whereas the Bears need to breach 4950 to regain their lost grounds.
2) The Nifty is now poised above all its key EMAs, but is below its key DMAs.
3) The Stochastics are still in the neutral zone, very near to the overbought area.
4) In the above chart, the volumes have increased with the Nifty going almost nowhere, giving a indication of a big move ahead. The MACD is indicating a up-move, the ADX is supporting this up-move but is suggesting a lower momentum to this trend. The Parabolic SAR continues with its Buy Signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 4950, we will open fresh long positions with a SL of 4920 and a target of 5020. We will add to these long positions only above 5045.
b) Below 5005, we will open fresh short positions with a SL of 5025 and a target of 4950. We will add to these short positions only below 5020.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, "The Bulls regain their footing", and as such the Nifty traded in the positive for almost the entire session. However, the Nifty closed below its opening mark, which is a signal of Bulls getting exhausted at some point. The Bears however, are yet to rise and strike. This, when added to the fact that yesterday was a NR7 day, makes up for a scenario, where the whipsaw may be unleashed.
1) The Elder Ray readings : Bull Power rises from +54 to +72 Bear Power reduces from -10 to +34, indicating that the Bears have now lost their footing and have to be quick to strike. For today, the Bulls need to surpass 5030 to maintain their upwards momentum, whereas the Bears need to breach 4950 to regain their lost grounds.
2) The Nifty is now poised above all its key EMAs, but is below its key DMAs.
3) The Stochastics are still in the neutral zone, very near to the overbought area.
4) In the above chart, the volumes have increased with the Nifty going almost nowhere, giving a indication of a big move ahead. The MACD is indicating a up-move, the ADX is supporting this up-move but is suggesting a lower momentum to this trend. The Parabolic SAR continues with its Buy Signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 4950, we will open fresh long positions with a SL of 4920 and a target of 5020. We will add to these long positions only above 5045.
b) Below 5005, we will open fresh short positions with a SL of 5025 and a target of 4950. We will add to these short positions only below 5020.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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