Further move on the Nifty will depend on how Bulls defend 5165 today & tomorrow.
As discussed yesterday, the Nifty tried to bounce back, with a positive opening, but soon gave away most of the gains and remained below the day's high, before closing with a minor loss of 4 points at 5193. The Nifty is likely to continue in a grinding mode until the narrow range of 5165 to 5225 is broken decisively.
1) The Elder Ray readings: Bull Power reduces from +4 to +1 Bear Power rises from -52 to -54 indicating the tug of war between the Bull & Bears, which is keeping the Nifty in a tight range. For today, the Bulls need to surpass the levels of 5230 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5180 to maintain their downwards momentum.
2) The is trading below all its key EMAs but above all its key DMAs, which is making the Nifty trade in a tight range.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased in yesterday's fall on the Nifty making the down move more sustainable. The MACD is also in the positive and is falling giving more credence to the down move. The ADX however, is suggesting a loss of momentum for the down move. The Parabolic SAR continues to give out its sell signal with a SL of 5330.
5) Considering the above, our trading plan is as under.
a) Around 5160, we will open fresh long positions with a SL of 5135 and a target of 5225. We will add to these long positions only above 5250.
b) Around 5230, we will open fresh short positions with a SL of 5250 and a target of 5170. We will add to these short positions only below 5135.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty tried to bounce back, with a positive opening, but soon gave away most of the gains and remained below the day's high, before closing with a minor loss of 4 points at 5193. The Nifty is likely to continue in a grinding mode until the narrow range of 5165 to 5225 is broken decisively.
1) The Elder Ray readings: Bull Power reduces from +4 to +1 Bear Power rises from -52 to -54 indicating the tug of war between the Bull & Bears, which is keeping the Nifty in a tight range. For today, the Bulls need to surpass the levels of 5230 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5180 to maintain their downwards momentum.
2) The is trading below all its key EMAs but above all its key DMAs, which is making the Nifty trade in a tight range.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased in yesterday's fall on the Nifty making the down move more sustainable. The MACD is also in the positive and is falling giving more credence to the down move. The ADX however, is suggesting a loss of momentum for the down move. The Parabolic SAR continues to give out its sell signal with a SL of 5330.
5) Considering the above, our trading plan is as under.
a) Around 5160, we will open fresh long positions with a SL of 5135 and a target of 5225. We will add to these long positions only above 5250.
b) Around 5230, we will open fresh short positions with a SL of 5250 and a target of 5170. We will add to these short positions only below 5135.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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