Nifty currently at a crucial juncture, with supports & resistances tightening.
As discussed yesterday, we saw expiry jitters on the bourses, with the Nifty opening with a minor positive gap up above previous day's highs and yet giving up all the gains in the late hours only to close with a minor red tick. None of our trading plans got triggered, and we were happy to sit on the sidelines while the Nifty gyrated.
1) The Elder Ray readings : Bull Power rises from +115 to +123 Bear Power also rises from +81 to +69, indicating that the Bears are clawing back but the Bulls are still in control of the Nifty. For today, the Bulls need to take the Nifty above 5720 to maintain their upwards momentum whereas the Bears need to breach the levels of 5595 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, the volumes have increased with the minor fall in the Nifty, indicating that the past month has been heavily traded as yesterday was expiry day. The MACD is giving out a signal of exhaustion with the histogram also retracting. The ADX is signaling an overall loss of momentum with the bias still being bullish. The Parabolic SAR continues with its buy signal with a SL of 5615.
5) Considering the above, our trading plan for the day is as under.
a) Below 5680 we will open fresh short positions with a SL of 5700 and a target of 5630. We will add to these short positions only below 5600.
b) Around 5620 we will open fresh long positions with a SL of 5600 and a target of 5675. We will add to these long positions only above 5705.
Happy Trading !!!
Also check out JustNifty and NiftyRange for more views on Nifty
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we saw expiry jitters on the bourses, with the Nifty opening with a minor positive gap up above previous day's highs and yet giving up all the gains in the late hours only to close with a minor red tick. None of our trading plans got triggered, and we were happy to sit on the sidelines while the Nifty gyrated.
1) The Elder Ray readings : Bull Power rises from +115 to +123 Bear Power also rises from +81 to +69, indicating that the Bears are clawing back but the Bulls are still in control of the Nifty. For today, the Bulls need to take the Nifty above 5720 to maintain their upwards momentum whereas the Bears need to breach the levels of 5595 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, the volumes have increased with the minor fall in the Nifty, indicating that the past month has been heavily traded as yesterday was expiry day. The MACD is giving out a signal of exhaustion with the histogram also retracting. The ADX is signaling an overall loss of momentum with the bias still being bullish. The Parabolic SAR continues with its buy signal with a SL of 5615.
5) Considering the above, our trading plan for the day is as under.
a) Below 5680 we will open fresh short positions with a SL of 5700 and a target of 5630. We will add to these short positions only below 5600.
b) Around 5620 we will open fresh long positions with a SL of 5600 and a target of 5675. We will add to these long positions only above 5705.
Happy Trading !!!
Also check out JustNifty and NiftyRange for more views on Nifty
For cash market recommendations see our Daily Pre Market calls on NSE
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