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Thursday 21 June 2012

Nifty - 21 Jun 2012 - Waiting for direction

Nifty formed a Doji yesterday, indicating indecision. Big move expected today.

As discussed yesterday, we had expected a "Volatile Day", however, what we got was a NR7 day, with the market participants remaining undecided on the further direction throughout the entire trading session. None of our trading plans triggered, and we were happy to wait on the sidelines. As usual, after a NR7 day, we are expecting a big move from the market very shortly, if not today.


1) The Elder Ray readings : Bull Power rises from +65 to +83 Bear Power reduces from 0 to +42, indicating that the Bears have again lost their grounds. For today, the Bulls need to overcome 5155 to maintain their upwards momentum, whereas the Bears need to breach 5070 to regain their lost territory.


2) The Nifty continues to close above all its key EMAs and above its 50 and 200 DMA. 


3) The stochastics continue to hover on the edge of the overbought zone.







4) In the above chart, the volumes have increased with the Nifty rising slightly, indicating that the up trend is likely to continue. The MACD is also seen as rising. The ADX is also suggesting a gain of momentum to the up move. The Parabolic SAR continues to hold out is Buy signal.


5) Considering the above, our trading plan for the day is as under.


a) Above 5095, we will open fresh long positions with a SL of 5070 and a target of 5150. We will add to these long positions only above 5190.


b) Around 5170, we will open fresh short positions with a SL of 5190 and a target of 5100. We will add to these short positions only below 5070.


Happy Trading !!!

 

For cash market recommendations see our Daily Pre Market calls on NSE

2 comments:

  1. excellent very easy to understand days trading simlified thanks

    ReplyDelete
  2. Always simple and sober with proper explanations


    daily live calls

    ReplyDelete

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