After a highest close since Mar 2012, Bulls still in control. New highs expected.
As discussed yesterday, the Bullish spell continued on the Nifty, with the markets opening with a minor positive gap up, and then consolidating with wild volatility in a narrow range, before charging up and then giving a highest close in about last six months. That the Bears got their chances but could not break the previous days levels (let alone the lows) establishes that the Bears now seem to have given up. Our trading plan (b) got triggered twice and we could book 45 points of profit in those two trades.
1) The Elder Ray readings : Bull Power increases from +68 to +95 Bear Power reduces from +7 to +54, indicating that as of now, the Bears seem to have lost the game. For today, the Bulls need to overcome the levels of 5455 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5345 to regain their lost grounds.
2) The Nifty continues to trade above all its key EMAs and all its key DMAs.
3) The stochastics have just entered the overbought zone, confirming the uptrend that exists on the Nifty.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating further possibility of the uptrend. The MACD is also positive now and the ADX is also suggesting a further strengthening of the bullish momentum. The Parabolic SAR continues to hold out its buy signal with the SL now pegged at 5251.
5) Considering the above, our trading plan for the day is as under.
a) Around 5405 we will open fresh long positions with a SL of 5385 and a target of 5455. We will add to these long positions only above 5480.
b) Around 5465 we will open fresh short positions with a SL of 5480 and a target of 5425. We will add to these short positions only below 5385.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Bullish spell continued on the Nifty, with the markets opening with a minor positive gap up, and then consolidating with wild volatility in a narrow range, before charging up and then giving a highest close in about last six months. That the Bears got their chances but could not break the previous days levels (let alone the lows) establishes that the Bears now seem to have given up. Our trading plan (b) got triggered twice and we could book 45 points of profit in those two trades.
1) The Elder Ray readings : Bull Power increases from +68 to +95 Bear Power reduces from +7 to +54, indicating that as of now, the Bears seem to have lost the game. For today, the Bulls need to overcome the levels of 5455 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5345 to regain their lost grounds.
2) The Nifty continues to trade above all its key EMAs and all its key DMAs.
3) The stochastics have just entered the overbought zone, confirming the uptrend that exists on the Nifty.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating further possibility of the uptrend. The MACD is also positive now and the ADX is also suggesting a further strengthening of the bullish momentum. The Parabolic SAR continues to hold out its buy signal with the SL now pegged at 5251.
5) Considering the above, our trading plan for the day is as under.
a) Around 5405 we will open fresh long positions with a SL of 5385 and a target of 5455. We will add to these long positions only above 5480.
b) Around 5465 we will open fresh short positions with a SL of 5480 and a target of 5425. We will add to these short positions only below 5385.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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