Nifty pauses mysteriously in its upward momentum. Trend reversal may come.
Yesterday, we expected the "Bullish Trend to continue" and had also expected some short covering at higher levels. However, the Nifty saw profit booking and a eventual close below the developing day pivot. None of our trading plans got triggered as the Nifty trading range contracted yet again.
1) The Elder Ray readings : Bull Power reduces from +97 to +92 Bear Power also reduces from +39 to +57, giving initial indications of caution for the up move. For today, the Bulls need to overcome the levels of 5400 in order to maintain their upwards momentum, wheras the Bears need to breach the Nifty below 5300 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 are still in the overbought zone.
4) In the above chart, the volumes have increased with the Nifty falling, indicating weakness at higher levels. The MACD and the ADX both are showing weakening of the up move. The Parabolic SAR is continuing its Buy signal with a SL of 5253.
5) Considering the above, our trading plan for the day is as under.
a) Below 5385, we will open fresh short positions with a SL of 5415 and a target of 5330. We will add to these short positions only below 5315.
b) Around 5325, we will open fresh long positions with a SL of 5315 and a target of 5365. We will add to these long positions only above 5415.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we expected the "Bullish Trend to continue" and had also expected some short covering at higher levels. However, the Nifty saw profit booking and a eventual close below the developing day pivot. None of our trading plans got triggered as the Nifty trading range contracted yet again.
1) The Elder Ray readings : Bull Power reduces from +97 to +92 Bear Power also reduces from +39 to +57, giving initial indications of caution for the up move. For today, the Bulls need to overcome the levels of 5400 in order to maintain their upwards momentum, wheras the Bears need to breach the Nifty below 5300 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 are still in the overbought zone.
4) In the above chart, the volumes have increased with the Nifty falling, indicating weakness at higher levels. The MACD and the ADX both are showing weakening of the up move. The Parabolic SAR is continuing its Buy signal with a SL of 5253.
5) Considering the above, our trading plan for the day is as under.
a) Below 5385, we will open fresh short positions with a SL of 5415 and a target of 5330. We will add to these short positions only below 5315.
b) Around 5325, we will open fresh long positions with a SL of 5315 and a target of 5365. We will add to these long positions only above 5415.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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