Amidst continuous FII buying and weak global cues, Nifty stuck in a grinding range.
As discussed on Friday, the Nifty was "Waiting for signal", which we expected after a NR7 trading day. However, the market chose to grind for yet another day, and remained range-bound within a tight range of 40 points. Our plan (a) got triggered and we could scalp 30 points out of this 40 points range gives us a feeling of satisfaction.
1) The Elder Ray readings: Bull Power reduces from +24 to +9 Bear Power rises from -1 to -32 indicating that the Bulls and the Bears are in equilibrium forcing the market to be indecisive. For today, the Bulls need to overcome the levels of 5245 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5190 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
3) The stochastics are just about to touch the oversold zone and are suggesting that the Nifty might be bottoming out in the short term.
4) In the above chart, the volumes have depleted in Friday's fall on the Nifty indicating lack of force behind the fall. The MACD is in the positive but is falling indicating that some more downside may be there for the Nifty. The ADX is also supportive of a down move, but is indicating loss of momentum for the same. The Parabolic SAR continues with its Sell signal with a SL put at 5289.
5) Considering the above, our trading plan for the day is as under.
a) Above 5185, we will open fresh long positions with a SL of 5165 and a target of 5235. We will add to these long positions only above 5250.
b) Around 5235, we will open fresh short positions with a SL of 5250 and a target of 5190. We will add to these short positions only below 5165.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the Nifty was "Waiting for signal", which we expected after a NR7 trading day. However, the market chose to grind for yet another day, and remained range-bound within a tight range of 40 points. Our plan (a) got triggered and we could scalp 30 points out of this 40 points range gives us a feeling of satisfaction.
1) The Elder Ray readings: Bull Power reduces from +24 to +9 Bear Power rises from -1 to -32 indicating that the Bulls and the Bears are in equilibrium forcing the market to be indecisive. For today, the Bulls need to overcome the levels of 5245 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5190 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
3) The stochastics are just about to touch the oversold zone and are suggesting that the Nifty might be bottoming out in the short term.
4) In the above chart, the volumes have depleted in Friday's fall on the Nifty indicating lack of force behind the fall. The MACD is in the positive but is falling indicating that some more downside may be there for the Nifty. The ADX is also supportive of a down move, but is indicating loss of momentum for the same. The Parabolic SAR continues with its Sell signal with a SL put at 5289.
5) Considering the above, our trading plan for the day is as under.
a) Above 5185, we will open fresh long positions with a SL of 5165 and a target of 5235. We will add to these long positions only above 5250.
b) Around 5235, we will open fresh short positions with a SL of 5250 and a target of 5190. We will add to these short positions only below 5165.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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