By overcoming the hump at 5340, Bulls have taken charge. Now need to follow up.
In our yesterday's post, "Bears get a look in", we had suggested that Bears are trying to get their foot in, and that a big move on either side is lurking. That big move came in the afternoon, as the Bulls swept past the hurdles and gave a close with a 70 point gain on the Nifty. During the morning session, Bears tried to get their foot in, however, their inability to successfully breach previous day's close, ensured their demise. Today, given the global cues, the Nifty is likely to open soft, however, there are good supports around 5310, which we will target to add long positions.
1) The Elder Ray readings : Bull Power rises from +68 to +100 Bear Power reduces from +25 to +36, indicating the strength of the Bullish grip on the Nifty. For today, the Bulls need to overcome the levels of 5365 on the Nifty to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5255 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs, highlighting the Bullish trend.
3) The stochastics are yet again well and deeply in the overbought zone.
4) In the above chart, the volumes have picked up with the rise in the Nifty confirming the Bullish stranglehold. The MACD is continuing the rise, with the histogram getting flat, again indicating the stability of the up move. The ADX is also suggesting a rise in the momentum for the up move. The Parabolic SAR has again turned into a Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5305, we will open fresh long positions with a SL of 5285 and a target of 5375. We will add to these long positions only above 5400.
b) Around 5390, we will open fresh short positions with a SL of 5400 and a target of 5335. We will add to these short positions only below 5285.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post, "Bears get a look in", we had suggested that Bears are trying to get their foot in, and that a big move on either side is lurking. That big move came in the afternoon, as the Bulls swept past the hurdles and gave a close with a 70 point gain on the Nifty. During the morning session, Bears tried to get their foot in, however, their inability to successfully breach previous day's close, ensured their demise. Today, given the global cues, the Nifty is likely to open soft, however, there are good supports around 5310, which we will target to add long positions.
1) The Elder Ray readings : Bull Power rises from +68 to +100 Bear Power reduces from +25 to +36, indicating the strength of the Bullish grip on the Nifty. For today, the Bulls need to overcome the levels of 5365 on the Nifty to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5255 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs, highlighting the Bullish trend.
3) The stochastics are yet again well and deeply in the overbought zone.
4) In the above chart, the volumes have picked up with the rise in the Nifty confirming the Bullish stranglehold. The MACD is continuing the rise, with the histogram getting flat, again indicating the stability of the up move. The ADX is also suggesting a rise in the momentum for the up move. The Parabolic SAR has again turned into a Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5305, we will open fresh long positions with a SL of 5285 and a target of 5375. We will add to these long positions only above 5400.
b) Around 5390, we will open fresh short positions with a SL of 5400 and a target of 5335. We will add to these short positions only below 5285.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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