Nifty continues to grind into a consolidation. Today's range could be 4835 4900.
As discussed yesterday, "Nifty enters consolidation mode", the Nifty traded within a confined range of 50 points, with a bullish bias, as it was in the positive zone for most of the day. However, in the end, it lost all the gains. Today again it seems, would be a similar day.
1) The Elder Ray readings : Bull Power rises from -60 to -12 Bear Power reduces from -148 to -63, indicating that though the Bulls are gaining some strength, they have a lot to do yet, and the Bears are still in their safe zone. For today, the Bulls need to overcome 4900 to regain their safety, whereas the Bears need to breach 4835 to maintain their downwards momentum.
2) The Nifty continues to trade well below its key EMAs and its key DMAs.
3) The stochastics are in the neutral zone, with the slow stochastics pointing upwards and the fast stochastics pointing downwards, indicating indecision in the market participants.
4) In the above chart, the volumes are decreasing with the nifty rising. The MACD has shown a positive divergence indicating a up move. The ADX is also suggesting loss in the down move and rise in the up move momentum. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 4900, we will open fresh short positions with a SL of 4925 and a target of 4835. We will add to these short positions only below 4810.
b) Around 4840, we will open fresh long positions with a SL of 4830 and a target of 4900. We will add to these long positions only above 4925.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, "Nifty enters consolidation mode", the Nifty traded within a confined range of 50 points, with a bullish bias, as it was in the positive zone for most of the day. However, in the end, it lost all the gains. Today again it seems, would be a similar day.
1) The Elder Ray readings : Bull Power rises from -60 to -12 Bear Power reduces from -148 to -63, indicating that though the Bulls are gaining some strength, they have a lot to do yet, and the Bears are still in their safe zone. For today, the Bulls need to overcome 4900 to regain their safety, whereas the Bears need to breach 4835 to maintain their downwards momentum.
2) The Nifty continues to trade well below its key EMAs and its key DMAs.
3) The stochastics are in the neutral zone, with the slow stochastics pointing upwards and the fast stochastics pointing downwards, indicating indecision in the market participants.
4) In the above chart, the volumes are decreasing with the nifty rising. The MACD has shown a positive divergence indicating a up move. The ADX is also suggesting loss in the down move and rise in the up move momentum. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 4900, we will open fresh short positions with a SL of 4925 and a target of 4835. We will add to these short positions only below 4810.
b) Around 4840, we will open fresh long positions with a SL of 4830 and a target of 4900. We will add to these long positions only above 4925.
For cash market recommendations see our Daily Pre Market calls on NSE
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