After a rise of 290 points in 4 trading sessions, some profit booking looks due.
As discussed yesterday, "No clear breakout signals yet", there was a clear zone of resistance at 5060 5090 levels, and the Nifty was unable to cross that zone, and the trading range was limited to 50 points. Today, given that the weekly trend is against the daily trend, some profit booking is expected.
1) The Elder Ray readings : Bull Power increases from +87 to +119 Bear Power reduces from -37 to +67, indicating that now the Bulls have gained control and the Bears have lost their grounds. For today, the Bulls need to overcome 5080 to maintain their upwards momentum, whereas the Bears need to breach below 4960 to regain their lost grounds.
2) The Nifty is still trading right between its key EMAs and its key DMAs, indicating that the daily trend is upwards however the short term trend remains downwards.
3) The fast stochastics are now well in the overbought zone, but the slow stochastics are just below and pointing upwards.
4) In the above chart, the volumes have slightly dipped with the narrowing trading range on the Nifty indicating a period of consolidation. The MACD is rising indicating that the uptrend is intact as yet. The ADX is now signalling a upwards trend, but the momentum slowing down. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5010, we will open fresh long positions with a SL of 4990 and a target of 5080. We will add to these long positions only above 5110.
b) Around 5080, we will open fresh short positions with a SL of 5105 and a target of 5015. We will add to these short positions only below 4990.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, "No clear breakout signals yet", there was a clear zone of resistance at 5060 5090 levels, and the Nifty was unable to cross that zone, and the trading range was limited to 50 points. Today, given that the weekly trend is against the daily trend, some profit booking is expected.
1) The Elder Ray readings : Bull Power increases from +87 to +119 Bear Power reduces from -37 to +67, indicating that now the Bulls have gained control and the Bears have lost their grounds. For today, the Bulls need to overcome 5080 to maintain their upwards momentum, whereas the Bears need to breach below 4960 to regain their lost grounds.
2) The Nifty is still trading right between its key EMAs and its key DMAs, indicating that the daily trend is upwards however the short term trend remains downwards.
3) The fast stochastics are now well in the overbought zone, but the slow stochastics are just below and pointing upwards.
4) In the above chart, the volumes have slightly dipped with the narrowing trading range on the Nifty indicating a period of consolidation. The MACD is rising indicating that the uptrend is intact as yet. The ADX is now signalling a upwards trend, but the momentum slowing down. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5010, we will open fresh long positions with a SL of 4990 and a target of 5080. We will add to these long positions only above 5110.
b) Around 5080, we will open fresh short positions with a SL of 5105 and a target of 5015. We will add to these short positions only below 4990.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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