AD Code

Monday 1 October 2012

Nifty - 01 Oct 2012 - Up move to continue

Nifty seems to be ready for a new up move after a brief consolidation.

As discussed on Friday, after the expiry jitters, the Nifty was waiting for further direction. It got this direction on the upside, right at the opening mark with a positive gap of 35 points. The Nifty kept on building on this gap right through the morning session to make a new 14 month high at 5735, before we saw some amount of profit booking. The Nifty closed at 5703, with a gain of 54 points.

1) The Elder Ray readings : Bull Power rises from +123 to +145 Bear Power reduces from +69 to +94 indicating the grip of the Bulls on the Nifty. For today, the Bulls need to soar the Nifty above 5755 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5610 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 continue to remain in the overbought zone.

 


4)  In the above chart, the volumes have decreased with the Nifty being at a recent high, indicating of the profit booking. The MACD continues to rise, with the histogram also showing signs of a further rise. The ADX is also suggesting some rise in the bullish momentum. The Parabolic SAR continues to give out its buy signal with a SL of 5637.

5) Considering the above, our trading plan for the day is as under.

a) Around 5675 we will open fresh long positions with a SL of 5650 and a target of 5735. We will add to these long positions only above 5760.

b) Around 5745 we will open fresh short positions with a SL of 5760 and a target of 5705. We will add to these short positions only below 5650.

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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