At 5240, Nifty seems to have peaked out and some profit booking is expected.
Yesterday, we were absent from the blog and from trading due to some social commitments. The Nifty however, continued to grind in a range of 35 points with extremely low volumes in a listless trading session. Today, given the global cues, the Nifty is likely to open flat and is likely to remain under pressure, as profit booking might take center stage.
1) The Elder Ray readings : Bull Power rises from +61 to +63 Bear Power reduces from -19 to +30, indicating that the Bears are now out of their safe zone and need to strike back soon. For today, the Bulls need to take the Nifty above 5260 to maintain their upwards momentum, whereas the Bears need to take the Nifty below 5190 to regain their lost grounds.
2) The Nifty is trading above all its key EMAs and all its key DMAs. The convergence of all its key EMAs at 5183 is a key level to be watched out for.
3) The stochastics are fast approaching the overbought zone, but are still pointing upwards.
4) In the above chart, the volumes have decreased in yesterday's rise making the rise less sustainable. The MACD is suggesting resumption of a down trend by pointing downwards. The ADX is suggesting loss of trend momentum, with equal bias towards the Bulls and the Bears. The Parabolic SAR is continuing with its Buy signal with a SL of 5045.
5) Considering the above, our trading plan for the day is as under.
a) Around 5250 we will open fresh short positions with a SL of 5265 and a target of 5190. We will add to these short positions only below 5180.
b) Around 5190, we will open fresh long positions with a SL of 5180 and a target of 5245. We will add to these long positions only above 5270.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we were absent from the blog and from trading due to some social commitments. The Nifty however, continued to grind in a range of 35 points with extremely low volumes in a listless trading session. Today, given the global cues, the Nifty is likely to open flat and is likely to remain under pressure, as profit booking might take center stage.
1) The Elder Ray readings : Bull Power rises from +61 to +63 Bear Power reduces from -19 to +30, indicating that the Bears are now out of their safe zone and need to strike back soon. For today, the Bulls need to take the Nifty above 5260 to maintain their upwards momentum, whereas the Bears need to take the Nifty below 5190 to regain their lost grounds.
2) The Nifty is trading above all its key EMAs and all its key DMAs. The convergence of all its key EMAs at 5183 is a key level to be watched out for.
3) The stochastics are fast approaching the overbought zone, but are still pointing upwards.
4) In the above chart, the volumes have decreased in yesterday's rise making the rise less sustainable. The MACD is suggesting resumption of a down trend by pointing downwards. The ADX is suggesting loss of trend momentum, with equal bias towards the Bulls and the Bears. The Parabolic SAR is continuing with its Buy signal with a SL of 5045.
5) Considering the above, our trading plan for the day is as under.
a) Around 5250 we will open fresh short positions with a SL of 5265 and a target of 5190. We will add to these short positions only below 5180.
b) Around 5190, we will open fresh long positions with a SL of 5180 and a target of 5245. We will add to these long positions only above 5270.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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