Trading range may continue to contract as Nifty gropes for direction.
As discussed in our last post, the Nifty paused in its unabated march upwards and witnessed a volatile stagnation on Friday. Just as our trading plan (a) got triggered, the Nifty saw a rapid fall to below 5350. We could not hit the target, but were able to book out owing to our trailing stop loss with a profit of over 40 points.
1) The Elder Ray readings : Bull Power reduces from +91 to +90 Bear Power rises from +57 to +32, indicating the inherent weakness of the Bears who were not able to retain their advantage. For today, the Bulls need to overcome the levels of 5415 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5305 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deeply into the overbought zone.
4) In the above chart, the volumes have remained stagnant with the Nifty going nowhere, indicating the indecision amongst the trading community. The MACD histogram is indicating some weakness at higher levels. The ADX is also suggesting loss of momentum for the bullish up move. The Parabolic SAR continues with its buy signal with a SL now pegged at 5277.
5) Considering the above, our trading plan for the day is as under.
a) Below 5390, we will open fresh short positions with a SL of 5415 and a target of 5335. 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 5370. We will add to these long positions only above 5415.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, the Nifty paused in its unabated march upwards and witnessed a volatile stagnation on Friday. Just as our trading plan (a) got triggered, the Nifty saw a rapid fall to below 5350. We could not hit the target, but were able to book out owing to our trailing stop loss with a profit of over 40 points.
1) The Elder Ray readings : Bull Power reduces from +91 to +90 Bear Power rises from +57 to +32, indicating the inherent weakness of the Bears who were not able to retain their advantage. For today, the Bulls need to overcome the levels of 5415 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5305 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deeply into the overbought zone.
4) In the above chart, the volumes have remained stagnant with the Nifty going nowhere, indicating the indecision amongst the trading community. The MACD histogram is indicating some weakness at higher levels. The ADX is also suggesting loss of momentum for the bullish up move. The Parabolic SAR continues with its buy signal with a SL now pegged at 5277.
5) Considering the above, our trading plan for the day is as under.
a) Below 5390, we will open fresh short positions with a SL of 5415 and a target of 5335. 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 5370. We will add to these long positions only above 5415.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.