With the Nifty breaking out above the resistance band, 5330 is the next target.
As discussed on Friday, it turned out to be a "Trend setting day" with the Nifty opening right above its near term resistance zone, and then never looking back at all. The Nifty eventually closed with a gain of 130 points and near its top end. Friday was a clear example of a bullish day as defined in "identifying market trends" as "A Bullish trend is identified by the ability of the Bulls to overcome Day Highs, consistently, without causing much harm to the Day lows. " Also to be noted is that the hitherto resistance point of 5195 has now become a point of support.
1) The Elder Ray readings : Bull Power rises from +52 to +155 Bear Power reduces from +18 to +57 indicating that the Bears are now left gasping for breath as the Bulls have run away with the Nifty. For today, the Bulls need to overcome the level of 5305 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5145 to regain their territory.
2) The Nifty has now closed above all its key EMAs and its key DMAs.
3) The stochastics are well and truly deep into the overbought zone.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating the sustainability of this up move. The MACD has also risen in accordance. The ADX is suggesting a gain of momentum to the up move. The Parabolic SAR is also holding out on its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5245, we will open fresh long positions with a SL of 5215 and a target of 5330. We will add to these long positions only above 5345.
b) Around 5335, we will open fresh short positions with a SL of 5345 and a target of 5255. We will add to these short positions only below 5215.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, it turned out to be a "Trend setting day" with the Nifty opening right above its near term resistance zone, and then never looking back at all. The Nifty eventually closed with a gain of 130 points and near its top end. Friday was a clear example of a bullish day as defined in "identifying market trends" as "A Bullish trend is identified by the ability of the Bulls to overcome Day Highs, consistently, without causing much harm to the Day lows. " Also to be noted is that the hitherto resistance point of 5195 has now become a point of support.
1) The Elder Ray readings : Bull Power rises from +52 to +155 Bear Power reduces from +18 to +57 indicating that the Bears are now left gasping for breath as the Bulls have run away with the Nifty. For today, the Bulls need to overcome the level of 5305 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5145 to regain their territory.
2) The Nifty has now closed above all its key EMAs and its key DMAs.
3) The stochastics are well and truly deep into the overbought zone.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating the sustainability of this up move. The MACD has also risen in accordance. The ADX is suggesting a gain of momentum to the up move. The Parabolic SAR is also holding out on its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5245, we will open fresh long positions with a SL of 5215 and a target of 5330. We will add to these long positions only above 5345.
b) Around 5335, we will open fresh short positions with a SL of 5345 and a target of 5255. We will add to these short positions only below 5215.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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