Mixed technical signals and mixed global cues suggest, Nifty to be range-bound.
As discussed on Friday, there was a "Volatile end to the week" with the Nifty gyrating wildly within a 65 point range after a very very weak opening, and closing with a minute loss of 19 points. Our plan (a) got triggered, but did miss the target by 25 points. We were happy to book a small profit of 45 points by the end of the day. Today again, the Nifty is likely to be playing out in a similar range, as we enter the series expiry week.
1) The Elder Ray readings : Bull Power reduces from +96 to +76 Bear Power rises from +20 to +10, indicating that the Bears are gradually and quietly gaining strength, however the Bulls are not giving up yet. For today, the Bulls need to overcome 5165 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5090 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and its 50 and 200 DMA. The 100DMA at 5198 seems to be the next resistance for any big up-move.
3) The stochastics are still in the overbought zone and are pointing downwards now.
4) In the above chart, the volumes have remained stagnant with the Nifty being range bound, indicating increasing indecision amongst the market participants. The MACD is indicating peaking out, with the Histogram starting to fall. The ADX is suggesting a slight loss of momentum for the up-move, but is showing strengthening of the market trend ahead. The Parabolic SAR continues to hold out a Buy signal, but this could turn if the Nifty trades below 5075.
5) Considering the above, our trading plan for the day is as under.
a) Around 5090, we will open fresh long positions with a SL of 5075 and a target of 5180. We will add to these long positions only above 5215.
b) Around 5185, we will open fresh short positions with a SL of 5215 and a target of 5100. We will add to these short positions only below 5075.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, there was a "Volatile end to the week" with the Nifty gyrating wildly within a 65 point range after a very very weak opening, and closing with a minute loss of 19 points. Our plan (a) got triggered, but did miss the target by 25 points. We were happy to book a small profit of 45 points by the end of the day. Today again, the Nifty is likely to be playing out in a similar range, as we enter the series expiry week.
1) The Elder Ray readings : Bull Power reduces from +96 to +76 Bear Power rises from +20 to +10, indicating that the Bears are gradually and quietly gaining strength, however the Bulls are not giving up yet. For today, the Bulls need to overcome 5165 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5090 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and its 50 and 200 DMA. The 100DMA at 5198 seems to be the next resistance for any big up-move.
3) The stochastics are still in the overbought zone and are pointing downwards now.
4) In the above chart, the volumes have remained stagnant with the Nifty being range bound, indicating increasing indecision amongst the market participants. The MACD is indicating peaking out, with the Histogram starting to fall. The ADX is suggesting a slight loss of momentum for the up-move, but is showing strengthening of the market trend ahead. The Parabolic SAR continues to hold out a Buy signal, but this could turn if the Nifty trades below 5075.
5) Considering the above, our trading plan for the day is as under.
a) Around 5090, we will open fresh long positions with a SL of 5075 and a target of 5180. We will add to these long positions only above 5215.
b) Around 5185, we will open fresh short positions with a SL of 5215 and a target of 5100. We will add to these short positions only below 5075.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
thanx.
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