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Friday 5 October 2012

Nifty - 05 Oct 2012 - Up Up & Away

Nifty makes new highs with shallow falls, aiming for higher targets very soon.

As discussed yesterday, we saw the uptrend remaining intact, with the Nifty opening with a 20 point gap up and then swiftly moving past our identified hurdle of 5780 and staying above it all throughout the trading session. During the course it also made a new 14 month high at 5807.

1) The Elder Ray readings : Bull Power rises from +117 to +158 Bear Power reduces from +90 to +102 indicative of the strong momentum that the Bulls are having right now. For today, the Bulls need to take the Nifty above 5835 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5650 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 too continue to remain in the overbought zone.

 


4) In the above chart, the volumes have increased with the rise in the Nifty indicative of the sustainability of the current up move. The MACD is rising along with the MACD histogram. The ADX too is confirming the strengthening of the upwards momentum. The Parabolic SAR continues to give out its buy signal with the SL of 5700.

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

a) Around 5760, we will open fresh long positions with a SL of 5735 and a target of 5820. We will add to these long positions only above 5840.

b) Around 5825, we will open fresh short positions with a SL of 5840 and a target of 5785. We will add to these short positions only below 5735. 

Happy Trading !!!

Also visit JustNifty and NiftyRange for more points of view on the Nifty. 

For cash market recommendations see our Daily Pre Market calls on NSE

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