Having crossed the major hump at 5270, Nifty may spend some time defending it.
As discussed yesterday, the Nifty managed to overcome the major hump at 5270 quite successfully, riding on the 45 points positive gap up opening aided by global cues. Most of the trading session then, was spent in defending 5270, which could become the mantra of trade for the next few sessions, as Nifty is stuck right between gaps both on the upside and the downside.
1) The Elder Ray readings: Bull Power rises from +27 to +87 Bear Power reduces from -28 to +55, indicating that the Bears have been caught napping by the gap up opening yesterday. For today, the Bulls need to take the Nifty above 5310 to maintain their upwards momentum, whereas the Bears need to take the Nifty below 5210 to regain their lost grounds.
2) The Nifty is trading above all its key EMAs and above all its key DMAs.
3) The stochastics are well and deep into the overbought zone.
4) In the above chart, the volumes have slightly increased in yesterday's gain on the Nifty. The MACD is rising and is showing a positive divergence. The ADX is also shifting its bias towards the Bulls now, however it is indicating a loss of momentum to the trend. The Parabolic SAR continues with its Buy signal with the SL now pegged at 5082.
5) Considering the above, our trading plan for the day is as under.
a) Above 5265, we will open fresh long positions with a SL of 5245 and a target of 5310. We will add to these long positions only above 5335.
b) Around 5310, we will open fresh short positions with a SL of 5335 and a target of 5270. We will add to these short positions only below 5245.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty managed to overcome the major hump at 5270 quite successfully, riding on the 45 points positive gap up opening aided by global cues. Most of the trading session then, was spent in defending 5270, which could become the mantra of trade for the next few sessions, as Nifty is stuck right between gaps both on the upside and the downside.
1) The Elder Ray readings: Bull Power rises from +27 to +87 Bear Power reduces from -28 to +55, indicating that the Bears have been caught napping by the gap up opening yesterday. For today, the Bulls need to take the Nifty above 5310 to maintain their upwards momentum, whereas the Bears need to take the Nifty below 5210 to regain their lost grounds.
2) The Nifty is trading above all its key EMAs and above all its key DMAs.
3) The stochastics are well and deep into the overbought zone.
4) In the above chart, the volumes have slightly increased in yesterday's gain on the Nifty. The MACD is rising and is showing a positive divergence. The ADX is also shifting its bias towards the Bulls now, however it is indicating a loss of momentum to the trend. The Parabolic SAR continues with its Buy signal with the SL now pegged at 5082.
5) Considering the above, our trading plan for the day is as under.
a) Above 5265, we will open fresh long positions with a SL of 5245 and a target of 5310. We will add to these long positions only above 5335.
b) Around 5310, we will open fresh short positions with a SL of 5335 and a target of 5270. We will add to these short positions only below 5245.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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