After a brief pause, the up move on the Nifty is likely to continue.
As discussed yesterday, the Nifty continued to rise, with the Nifty opening with minor gains, then overcoming the 5300 levels, before closing just flat. As a result, we got a Doji in the daily chart. During recent past, Doji has been a indicator of continuation, and this one could as well be so.
1) The Elder Ray readings : Bull Power reduces from +155 to +149 Bear Power also reduces from +57 to +111, indicating of the consolidation phase that underwent yesterday. For today, the Bulls need to overcome levels of 5325 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5170 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deeply into the overbought zone.
4) In the above chart, the volumes have decreased with the Nifty being stagnant, indicating a phase of consolidation at higher levels. The MACD continues to rise, confirming the uptrend. The ADX is suggesting strengthening of the momentum to the uptrend. The Parabolic SAR continues to hold out its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5255, we will open fresh long positions with a SL of 5220 and a target of 5310. We will add to these long positions only above 5340.
b) Around 5325, we will open fresh short positions with a SL of 5340 and a target of 5280. We will add to these short positions only below 5220.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty continued to rise, with the Nifty opening with minor gains, then overcoming the 5300 levels, before closing just flat. As a result, we got a Doji in the daily chart. During recent past, Doji has been a indicator of continuation, and this one could as well be so.
1) The Elder Ray readings : Bull Power reduces from +155 to +149 Bear Power also reduces from +57 to +111, indicating of the consolidation phase that underwent yesterday. For today, the Bulls need to overcome levels of 5325 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5170 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deeply into the overbought zone.
4) In the above chart, the volumes have decreased with the Nifty being stagnant, indicating a phase of consolidation at higher levels. The MACD continues to rise, confirming the uptrend. The ADX is suggesting strengthening of the momentum to the uptrend. The Parabolic SAR continues to hold out its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5255, we will open fresh long positions with a SL of 5220 and a target of 5310. We will add to these long positions only above 5340.
b) Around 5325, we will open fresh short positions with a SL of 5340 and a target of 5280. We will add to these short positions only below 5220.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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