Nifty has seen a bullish consolidation for 2 days. Some more grind still left.
As discussed yesterday, we saw Bulls holding the sway on the Nifty, as in spite of some profit booking, the Nifty never breached 5650 and consolidated during the entire trading session in a narrow range of 50 points. None of our trading plans got triggered and we were happy to sit on the sidelines.
1) The Elder Ray readings : Bull Power reduces from +192 to +162 Bear Power rises from +145 to +112 indicating that the Bulls still hold the grip on the Nifty. For today, the Bulls need to overcome the levels of 5730 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5550 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The stochastics continue to remain in the overbought zone, with no signs of coming down.
4) In the above chart, the volumes have increased exceptionally with the Nifty consolidating, indicating expiry jitters amongst the trading community. The MACD continues to rise unabated whereas the histogram shows some exhaustion. The ADX is also suggesting some loss of momentum for the Bulls, however, the Bears have no momentum with them at all. The Parabolic SAR continues with its buy signal with the SL now pegged at 5564.
5) Considering the above, our trading plan for the day is as under.
a) Around 5640, we will open fresh long positions with a SL of 5620 and a target of 5690. We will add to these long positions only above 5730.
b) Around 5715, we will open fresh short positions with a SL of 5730 and a target of 5665. We will add to these short positions only below 5620.
Happy Trading !!!
Also check out Just Nifty and The Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we saw Bulls holding the sway on the Nifty, as in spite of some profit booking, the Nifty never breached 5650 and consolidated during the entire trading session in a narrow range of 50 points. None of our trading plans got triggered and we were happy to sit on the sidelines.
1) The Elder Ray readings : Bull Power reduces from +192 to +162 Bear Power rises from +145 to +112 indicating that the Bulls still hold the grip on the Nifty. For today, the Bulls need to overcome the levels of 5730 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5550 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The stochastics continue to remain in the overbought zone, with no signs of coming down.
4) In the above chart, the volumes have increased exceptionally with the Nifty consolidating, indicating expiry jitters amongst the trading community. The MACD continues to rise unabated whereas the histogram shows some exhaustion. The ADX is also suggesting some loss of momentum for the Bulls, however, the Bears have no momentum with them at all. The Parabolic SAR continues with its buy signal with the SL now pegged at 5564.
5) Considering the above, our trading plan for the day is as under.
a) Around 5640, we will open fresh long positions with a SL of 5620 and a target of 5690. We will add to these long positions only above 5730.
b) Around 5715, we will open fresh short positions with a SL of 5730 and a target of 5665. We will add to these short positions only below 5620.
Happy Trading !!!
Also check out Just Nifty and The Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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