After 3 days of indecision, Nifty may set the trend today. Bullish only till 5115 holds.
As discussed yesterday, we saw a volatile expiry day, with the Nifty opening and closing at almost the same levels, and gyrating wildly within a small trading range of just 35 points. In fact, it turned out to be a dull expiry, without any fireworks that are seen normally. As such, the technical resistances and supports which were set about three days ago, still hold and any further direction would be clear only when these are breached.
1) The Elder Ray readings : Bull Power reduces from +60 to +52 Bear Power rises from +30 to +18, indicating that the Bulls are still strong, and that the Bears are also getting stronger. For today, the Bulls need to overcome 5175 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5110 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and its 50 and 200 DMAs. The 100 DMA which is at 5193 could pose as a near term resistance.
3) The stochastics are just below the overbought zone and are pointing horizontally, indicating indecision in the markets as yet.
4) In the above chart, the volumes have increased in yesterdays indecisive move on the Nifty, indicating that a major move is likely to unfold shortly. The MACD continues to remain in the positive, whereas the histogram continues to fall, indicating that weakness could creep in shortly. The ADX is also suggesting a weakening of the up-move. The Parabolic SAR continues with its buy signal, with a indication of change in signal below 5113.
5) Considering the above, our trading plan for the day is as under.
a) Around 5130, we will open fresh long positions with a SL of 5115 and a target of 5175. We will add to these long positions only above 5195.
b) Around 5180, we will open fresh short positions with a SL of 5195 and a target of 5120. We will add to these short positions only below 5095.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we saw a volatile expiry day, with the Nifty opening and closing at almost the same levels, and gyrating wildly within a small trading range of just 35 points. In fact, it turned out to be a dull expiry, without any fireworks that are seen normally. As such, the technical resistances and supports which were set about three days ago, still hold and any further direction would be clear only when these are breached.
1) The Elder Ray readings : Bull Power reduces from +60 to +52 Bear Power rises from +30 to +18, indicating that the Bulls are still strong, and that the Bears are also getting stronger. For today, the Bulls need to overcome 5175 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5110 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and its 50 and 200 DMAs. The 100 DMA which is at 5193 could pose as a near term resistance.
3) The stochastics are just below the overbought zone and are pointing horizontally, indicating indecision in the markets as yet.
4) In the above chart, the volumes have increased in yesterdays indecisive move on the Nifty, indicating that a major move is likely to unfold shortly. The MACD continues to remain in the positive, whereas the histogram continues to fall, indicating that weakness could creep in shortly. The ADX is also suggesting a weakening of the up-move. The Parabolic SAR continues with its buy signal, with a indication of change in signal below 5113.
5) Considering the above, our trading plan for the day is as under.
a) Around 5130, we will open fresh long positions with a SL of 5115 and a target of 5175. We will add to these long positions only above 5195.
b) Around 5180, we will open fresh short positions with a SL of 5195 and a target of 5120. We will add to these short positions only below 5095.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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