AD Code

Thursday 23 August 2012

Nifty - 23 Aug 2012 - Bullish grip continues

Bullish stranglehold on the Nifty to continue. 5380 is the rising support now.

As discussed yesterday, the Nifty upswing continued in spite of weak global cues. The Nifty opened with a negative gap of 25 points and then filled the gap immediately, where it became choppy before closing at 5313. Our trading plan (a) triggered in the morning itself. However, it did not meet its target and we could book a minor profit of 15 points by EOD.

1) The Elder Ray readings : Bull Power reduces from +100 to +95 Bear Power also reduces from +43 to +57, indicating that even with the weak global cues, the Bulls have not lost much, and yet the Bears have lost more. For today, the Bulls need to overcome the levels of 5445 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5340 to regain their lost grounds.

2) The Nifty continues to close above all its key EMAs and above all its key DMAs, indicating the strong grip of the Bulls over the Nifty.

3) The stochastics continue to remain well and deeply into the overbought zone.

 


4) In the above chart, the volumes have depleted with the minor fall in the Nifty, indicating absence of major selling momentum. The MACD continues to rise and remain in the positive. The ADX is suggesting a rise in the momentum, with the Bias towards the Bulls. The Parabolic SAR continues its buy signal with the SL now pegged at 5329.

5) Considering the above, our trading plan for the day is as under.

a) Around 5395, we will open fresh long positions with a SL of 5375 and a target of 5455. We will add to these long positions only above 5475.

b) Around 5455, we will open fresh short positions with a SL of 5475 and a target of 5410. We will add to these short positions only below 5375.

Happy Trading !!! 

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