The consolidation that began on 07th Aug still continues in the 5270 5370 range.
On 07th Aug 2012, we suggested that there would be "Grinding consolidation ahead", and since then we have seen Nifty grinding between 5377 and 5294 with a close near the day average on all 4 trading sessions since then. We are expecting this consolidation to prolong till the market decides to breakout in either of the directions.
1) The Elder Ray readings: Bull Power reduces from +116 to +68 Bear Power rises from +60 to +32, indicative of the tug of war going on between the Bulls & the Bears, with the Bulls having a advantage here. For today, the Bulls need to take the Nifty above 5340 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5265 to regain their lost grounds.
2) The Nifty has yet again closed above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have decreased, with the Nifty stagnating, indicating non participation in a indecisive market. The MACD is threatening to make a lower top, which if unfolds, would lead to a major down move. The ADX is suggesting a lowering of momentum for the Bulls and strengthening of momentum for the Bears, with the main trend being neutral. The Parabolic SAR continues with its Buy signal with the SL now at 5186.
5) Considering the above, our trading plan for the day is as under.
a) Around 5285, we will open fresh long positions with a SL of 5265 and a target of 5355. We will add to these long positions only above 5375.
b) Around 5360, we will open fresh short positions with a SL of 5375 and a target of 5300. We will add to these short positions only below 5265.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
On 07th Aug 2012, we suggested that there would be "Grinding consolidation ahead", and since then we have seen Nifty grinding between 5377 and 5294 with a close near the day average on all 4 trading sessions since then. We are expecting this consolidation to prolong till the market decides to breakout in either of the directions.
1) The Elder Ray readings: Bull Power reduces from +116 to +68 Bear Power rises from +60 to +32, indicative of the tug of war going on between the Bulls & the Bears, with the Bulls having a advantage here. For today, the Bulls need to take the Nifty above 5340 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5265 to regain their lost grounds.
2) The Nifty has yet again closed above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have decreased, with the Nifty stagnating, indicating non participation in a indecisive market. The MACD is threatening to make a lower top, which if unfolds, would lead to a major down move. The ADX is suggesting a lowering of momentum for the Bulls and strengthening of momentum for the Bears, with the main trend being neutral. The Parabolic SAR continues with its Buy signal with the SL now at 5186.
5) Considering the above, our trading plan for the day is as under.
a) Around 5285, we will open fresh long positions with a SL of 5265 and a target of 5355. We will add to these long positions only above 5375.
b) Around 5360, we will open fresh short positions with a SL of 5375 and a target of 5300. We will add to these short positions only below 5265.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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