After two narrow sessions, Nifty heading for resistances on the day of series expiry.
As discussed yesterday, we again saw some weakness creeping in on the Nifty, with the Nifty opening higher and right into the resistance band and then closing below the opening mark. As the Nifty opened between the entry and SL points of our plan (a), it got triggered and we could garner a small profit of 30 points with a better risk to reward ratio. Today, being the day of expiry, we could see volatility on the bourses.
1) The Elder Ray readings : Bull Power rises from +41 to +60 Bear Power reduces from +2 to +29, indicating that the Bears have again lost their advantage, however the Bulls have not gained much from it though. For today, the Bulls need to overcome 5175 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5095 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs. The 100 DMA at 5195 is likely to be the resistance that needs to be conquered by the Bulls for any major up-move.
3) The stochastics are just below the overbought zone, with the fast stochastics pointing upwards and the slow stochastics pointing downwards, indicating the volatility that could unleash.
4) In the above chart, the volumes keep on reducing with the Nifty actually going nowhere, indicating exhaustion. The MACD continues to be in the positive but continues to decline, indicating a looming threat of a down-move. The ADX, however, is suggesting a strong momentum for the Bulls. The Parabolic SAR continues with its Buy signal, however this signal has flattened out at 5096.
5) Considering the above, our trading plan for the day is as under.
a) Around 5190, we will open fresh short positions with a SL of 5205 and a target of 5100. We will add to these short positions only below 5095.
b) Around 5110, we will open fresh long positions with a SL of 5095 and a target of 5165. We will add to these long positions only above 5205.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we again saw some weakness creeping in on the Nifty, with the Nifty opening higher and right into the resistance band and then closing below the opening mark. As the Nifty opened between the entry and SL points of our plan (a), it got triggered and we could garner a small profit of 30 points with a better risk to reward ratio. Today, being the day of expiry, we could see volatility on the bourses.
1) The Elder Ray readings : Bull Power rises from +41 to +60 Bear Power reduces from +2 to +29, indicating that the Bears have again lost their advantage, however the Bulls have not gained much from it though. For today, the Bulls need to overcome 5175 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5095 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs. The 100 DMA at 5195 is likely to be the resistance that needs to be conquered by the Bulls for any major up-move.
3) The stochastics are just below the overbought zone, with the fast stochastics pointing upwards and the slow stochastics pointing downwards, indicating the volatility that could unleash.
4) In the above chart, the volumes keep on reducing with the Nifty actually going nowhere, indicating exhaustion. The MACD continues to be in the positive but continues to decline, indicating a looming threat of a down-move. The ADX, however, is suggesting a strong momentum for the Bulls. The Parabolic SAR continues with its Buy signal, however this signal has flattened out at 5096.
5) Considering the above, our trading plan for the day is as under.
a) Around 5190, we will open fresh short positions with a SL of 5205 and a target of 5100. We will add to these short positions only below 5095.
b) Around 5110, we will open fresh long positions with a SL of 5095 and a target of 5165. We will add to these long positions only above 5205.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
hi could u tell me what settings to use for fast Stochastic.
ReplyDeleteThanks
thanx..
ReplyDelete@maninder,
ReplyDeleteHi, it is the usual formula
k=100* (LastClose-minLow)/(maxHigh-minLow)
where minLow is the low of last 14 candles, and maxHigh is the high of last 14 candles. In our case, one candle is for one trading session, since our primary time frame is one day.