As the Nifty waits for further direction, 'Buy on dips' continues.
As discussed in our yesterday's post, "Buy on Dips" continued almost all through the session. However, we also saw some indecision at higher levels, which limited the up move on the Nifty. None of our trading plans triggered yesterday, and we were happy to watch the moves from the sidelines. As traders, we have to be patient and decisive simultaneously. Also to be noted is yesterday was a NR7 day, and a we expect a bigger move today.
1) The Elder Ray readings : Bull Power reduces from +136 to +133 Bear Power also reduces from +22 to +84, indicating that the Bears have lost more momentum in yesterday's trade. For today, the Bulls need to overcome 5160 to maintain their upwards momentum whereas the Bears need to breach 5030 to regain their lost momentum.
2) The Nifty continues to trade above all its key EMAs and also above its 50DMA and its 200DMA. The 100DMA around 5200 could be the next resistance to any up move.
3) The stochastics are well and deep into the overbought zone, and some profit booking could be expected now.
4) In the above chart, the volumes have remained stagnant, with the Nifty really going nowhere, indicating the indecision amongst the market participants. The MACD continues to rise, indicating the strength of the Bulls currently. The ADX is suggesting a slight weakening of the momentum in the up move. The Parabolic SAR is still giving out a Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5085, we will open fresh long positions with a SL of 5050 and a target of 5160. We will add to these long positions only above 5190.
b) Around 5180, we will open fresh short positions with a SL of 5190 and a target of 5120. We will add to these short positions only below 5050.
c) We will maintain a "No Trading Zone" till the Nifty breaks the 5100 5150 zone for the day.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our yesterday's post, "Buy on Dips" continued almost all through the session. However, we also saw some indecision at higher levels, which limited the up move on the Nifty. None of our trading plans triggered yesterday, and we were happy to watch the moves from the sidelines. As traders, we have to be patient and decisive simultaneously. Also to be noted is yesterday was a NR7 day, and a we expect a bigger move today.
1) The Elder Ray readings : Bull Power reduces from +136 to +133 Bear Power also reduces from +22 to +84, indicating that the Bears have lost more momentum in yesterday's trade. For today, the Bulls need to overcome 5160 to maintain their upwards momentum whereas the Bears need to breach 5030 to regain their lost momentum.
2) The Nifty continues to trade above all its key EMAs and also above its 50DMA and its 200DMA. The 100DMA around 5200 could be the next resistance to any up move.
3) The stochastics are well and deep into the overbought zone, and some profit booking could be expected now.
4) In the above chart, the volumes have remained stagnant, with the Nifty really going nowhere, indicating the indecision amongst the market participants. The MACD continues to rise, indicating the strength of the Bulls currently. The ADX is suggesting a slight weakening of the momentum in the up move. The Parabolic SAR is still giving out a Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5085, we will open fresh long positions with a SL of 5050 and a target of 5160. We will add to these long positions only above 5190.
b) Around 5180, we will open fresh short positions with a SL of 5190 and a target of 5120. We will add to these short positions only below 5050.
c) We will maintain a "No Trading Zone" till the Nifty breaks the 5100 5150 zone for the day.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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