After a brief pause, the Nifty likely to continue its up move once it clears 5635.
As discussed in our last post, we saw a Bullish consolidation on the Nifty, with the Nifty opening with a minor gap down of 8 points and then grinding in a narrow 35 point range during the entire trading session, without losing its bullish bias. None of our trading plans got triggered, as happens during most consolidation moves.
1) The Elder Ray readings : Bull Power reduces from +234 to +177 Bear Power rises from +167 to +143, indicating that the Bears have a long way to go, and that the Bulls are still in the driving seat. For today, the Bulls need to overcome the levels of 5650 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the levels of 5465 on the Nifty to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The stochastics are still in the overbought zone.
4) In the above chart, we can see, that the volumes have decreased with the stagnation in the Nifty, indicating that the up move remains intact. The MACD is showing a continuation of the up move, the ADX is suggesting a mild weakening of the upwards momentum, and the Parabolic SAR continues with its buy signal with the SL now pegged at 5404.
5) Considering the above, our trading plan for the day is as under.
a) Around 5570 we will open fresh long positions with a SL of 5545 and a target of 5625. We will add to these long positions only above 5650.
b) Around 5635, we will open fresh short positions with a SL of 5650 and a target of 5590. We will add to these short positions only below 5545.
Happy Trading !!!
Also see Just Nifty and Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, we saw a Bullish consolidation on the Nifty, with the Nifty opening with a minor gap down of 8 points and then grinding in a narrow 35 point range during the entire trading session, without losing its bullish bias. None of our trading plans got triggered, as happens during most consolidation moves.
1) The Elder Ray readings : Bull Power reduces from +234 to +177 Bear Power rises from +167 to +143, indicating that the Bears have a long way to go, and that the Bulls are still in the driving seat. For today, the Bulls need to overcome the levels of 5650 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the levels of 5465 on the Nifty to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The stochastics are still in the overbought zone.
4) In the above chart, we can see, that the volumes have decreased with the stagnation in the Nifty, indicating that the up move remains intact. The MACD is showing a continuation of the up move, the ADX is suggesting a mild weakening of the upwards momentum, and the Parabolic SAR continues with its buy signal with the SL now pegged at 5404.
5) Considering the above, our trading plan for the day is as under.
a) Around 5570 we will open fresh long positions with a SL of 5545 and a target of 5625. We will add to these long positions only above 5650.
b) Around 5635, we will open fresh short positions with a SL of 5650 and a target of 5590. We will add to these short positions only below 5545.
Happy Trading !!!
Also see Just Nifty and Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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