After a Bullish week, the short term trend is now to wait for dips and buy on dips.
As discussed on Friday, we saw a "Volatile end to the week", where the Nifty opened with a small gap down of about 4 points, went below to break the previous day's lows and then in the last hour swiftly broke out from there to overcome previous day's highs to close at 5068 with a minor gain of about 20 points. Our trading plan (a) stated "Around 5010, we will open fresh long positions with a SL of 4990 and a target of 5080." and that turned out to be executed to perfection on Friday.
1) The Elder Ray readings : Bull Power rises from +119 to +125 Bear Power also rises from +67 to +35, indicating that the volatility could increase in days to come, with the Bulls having a slight edge over the Bears. For today, the Bulls need to overcome 5105 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 4985 to regain their lost grounds.
2) The Nifty is now trading above all its key EMAs which are pointing upwards. It is also trading above its above its 200 DMA which is at 5064. However, it is trading below its 50DMA and its 100 DMA.
3) The stochastics are now well and deeply into the overbought zone.
4) In the above chart, the volumes have decreased with the Friday's rise in the Nifty indicating the susceptibility of the rise. The MACD is showing signs of peaking indicating that the rise could continue for a while but a fall is just round the corner. The ADX is suggesting a fall in the momentum of the bullish trend. The Parabolic SAR is continuing with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5020, we will open fresh long positions with a SL of 5000 and a target of 5120. We will add to these long positions only above 5135.
b) Around 5125, we will add fresh short positions with a SL of 5135 and a target of 5050. We will add to these short positions only below 5000.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, we saw a "Volatile end to the week", where the Nifty opened with a small gap down of about 4 points, went below to break the previous day's lows and then in the last hour swiftly broke out from there to overcome previous day's highs to close at 5068 with a minor gain of about 20 points. Our trading plan (a) stated "Around 5010, we will open fresh long positions with a SL of 4990 and a target of 5080." and that turned out to be executed to perfection on Friday.
1) The Elder Ray readings : Bull Power rises from +119 to +125 Bear Power also rises from +67 to +35, indicating that the volatility could increase in days to come, with the Bulls having a slight edge over the Bears. For today, the Bulls need to overcome 5105 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 4985 to regain their lost grounds.
2) The Nifty is now trading above all its key EMAs which are pointing upwards. It is also trading above its above its 200 DMA which is at 5064. However, it is trading below its 50DMA and its 100 DMA.
3) The stochastics are now well and deeply into the overbought zone.
4) In the above chart, the volumes have decreased with the Friday's rise in the Nifty indicating the susceptibility of the rise. The MACD is showing signs of peaking indicating that the rise could continue for a while but a fall is just round the corner. The ADX is suggesting a fall in the momentum of the bullish trend. The Parabolic SAR is continuing with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5020, we will open fresh long positions with a SL of 5000 and a target of 5120. We will add to these long positions only above 5135.
b) Around 5125, we will add fresh short positions with a SL of 5135 and a target of 5050. We will add to these short positions only below 5000.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
just superb analysis. thank you.
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