At higher levels, Bulls look nervous, Bears look weak, Nifty remains stagnant.
As discussed yesterday, the Bullish grip remained on the Nifty, with the Nifty opening with a mild positive gap, then traversing the previous day's high, before giving up all the gains and traversing to the previous day's low and closing with a minor gain of 3 points. Our plan (b) got triggered, and met its target. Then our plan (a) got triggered and got halted mid-way at the EOD. We were able to book a profit of 55 points during the session.
1) The Elder Ray readings : Bull Power rises from +95 to +100 Bear Power also rises from +57 to +45, indicating the nervousness of the Bulls and the weakness of the Bears. For today, the Bulls need to take the Nifty above 5460 to maintain their upwards momentum, whereas the Bears need to take the Nifty below 5355 to regain their lost grounds.
2) The Nifty 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 Nifty has formed a 'Doji' in what could be a supply zone. The volumes have increased with the Nifty remaining stagnant at the high point, indicating that the Bulls are not giving up easily. The MACD is still in the positive and is rising. The ADX is also suggesting rise in momentum, with a bias towards the Bulls. The Parabolic SAR continues with its Buy signal with a SL now pegged at 5353.
5) Considering the above, our trading plan for the day is as under.
a) Around 5385, we will open fresh long positions with a SL of 5370 and a target of 5445. We will add to these long positions only above 5460.
b) Around 5450, we will open fresh short positions with a SL of 5460 and a target of 5415. We will add to these short positions only below 5370.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Bullish grip remained on the Nifty, with the Nifty opening with a mild positive gap, then traversing the previous day's high, before giving up all the gains and traversing to the previous day's low and closing with a minor gain of 3 points. Our plan (b) got triggered, and met its target. Then our plan (a) got triggered and got halted mid-way at the EOD. We were able to book a profit of 55 points during the session.
1) The Elder Ray readings : Bull Power rises from +95 to +100 Bear Power also rises from +57 to +45, indicating the nervousness of the Bulls and the weakness of the Bears. For today, the Bulls need to take the Nifty above 5460 to maintain their upwards momentum, whereas the Bears need to take the Nifty below 5355 to regain their lost grounds.
2) The Nifty 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 Nifty has formed a 'Doji' in what could be a supply zone. The volumes have increased with the Nifty remaining stagnant at the high point, indicating that the Bulls are not giving up easily. The MACD is still in the positive and is rising. The ADX is also suggesting rise in momentum, with a bias towards the Bulls. The Parabolic SAR continues with its Buy signal with a SL now pegged at 5353.
5) Considering the above, our trading plan for the day is as under.
a) Around 5385, we will open fresh long positions with a SL of 5370 and a target of 5445. We will add to these long positions only above 5460.
b) Around 5450, we will open fresh short positions with a SL of 5460 and a target of 5415. We will add to these short positions only below 5370.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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