Nifty may remain bullish above 5320 with a major support at 5270, as Bears weaken.
As discussed yesterday, we are seeing the start of a grinding consolidation phase. The Nifty successfully closed the gap that was left unfilled for 19 trading sessions and has closed above it, making for a confirmation of the bullish trend.
1) The Elder Ray readings : Bull Power rises from +87 to +126 Bear Power reduces from +55 to +57, indicating that the Bulls have gone too far for the Bears to pull them back, and also now the task of the Bulls to maintain the upward momentum will become that much more difficult. This could lead into a grinding consolidation. For today, the Bulls need to take the Nifty over 5370 to maintain their upwards momentum, whereas the Bears need to take the Nifty below 5230 to regain their lost grounds.
2) The Nifty is trading well above all its key EMAs and all its key DMAs.
3) The stochastics are well and deeply in the overbought zone.
4) In the above chart, the volumes have increased with the rise in the Nifty confirming the Bullish up move. The MACD is also seen rising as is the ADX showing the bias towards the Bulls. The Parabolic SAR too, continues with its buy signal with a SL of 5103.
5) Considering the above, our trading plan for the day is as under.
a) Around 5300, we will open fresh long positions with a SL of 5280 and a target of 5370. We will add to these long positions only above 5390.
b) Around 5375, we will open fresh short positions with a SL of 5390 and a target of 5325. We will add to these short positions only below 5280.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we are seeing the start of a grinding consolidation phase. The Nifty successfully closed the gap that was left unfilled for 19 trading sessions and has closed above it, making for a confirmation of the bullish trend.
1) The Elder Ray readings : Bull Power rises from +87 to +126 Bear Power reduces from +55 to +57, indicating that the Bulls have gone too far for the Bears to pull them back, and also now the task of the Bulls to maintain the upward momentum will become that much more difficult. This could lead into a grinding consolidation. For today, the Bulls need to take the Nifty over 5370 to maintain their upwards momentum, whereas the Bears need to take the Nifty below 5230 to regain their lost grounds.
2) The Nifty is trading well above all its key EMAs and all its key DMAs.
3) The stochastics are well and deeply in the overbought zone.
4) In the above chart, the volumes have increased with the rise in the Nifty confirming the Bullish up move. The MACD is also seen rising as is the ADX showing the bias towards the Bulls. The Parabolic SAR too, continues with its buy signal with a SL of 5103.
5) Considering the above, our trading plan for the day is as under.
a) Around 5300, we will open fresh long positions with a SL of 5280 and a target of 5370. We will add to these long positions only above 5390.
b) Around 5375, we will open fresh short positions with a SL of 5390 and a target of 5325. We will add to these short positions only below 5280.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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