With the Nifty still in a tricky terrain the Bulls & Bears look equally strong.
As discussed on Friday, we saw the Nifty was in a tricky terrain as it opened with a mild gap down, and threatened to breakdown below 5650, but regained grounds and went up to break the previous day's high but did not break out and closed with a loss of 32 points.
1) The Elder Ray readings : Bulls Power rises from +47 to +51 Bear Power reduces from -37 to -15, indicating that the Bulls are still having a minor advantage, but more or less a equilibrium exists. For today, the Bulls need to take the Nifty above 5730 to maintain their upwards momentum whereas the Bears need to take the Nifty below 5655 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA (5691) but has closed above its 13EMA (5674) and 21EMA (5630) and above all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart the volumes have remained stagnant with the Nifty also remaining static indicating the equilibrium that exists in the market. The MACD continues to weaken with the histogram remaining in the negative and growing gradually. The ADX is also suggesting a weakening of the up move but the direction favored is still upwards. The Parabolic SAR continues with its sell signal with the SL now at 5743.
5) Considering the above, our trading plan for the day is as under.
a) Around 5660 we will open fresh long positions with a SL of 5640 and a target of 5720. We will add to these long positions only above 5750.
b) Around 5730 we will open fresh short positions with a SL of 5750 and a target of 5685. We will add to these short positions only below 5640.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, we saw the Nifty was in a tricky terrain as it opened with a mild gap down, and threatened to breakdown below 5650, but regained grounds and went up to break the previous day's high but did not break out and closed with a loss of 32 points.
1) The Elder Ray readings : Bulls Power rises from +47 to +51 Bear Power reduces from -37 to -15, indicating that the Bulls are still having a minor advantage, but more or less a equilibrium exists. For today, the Bulls need to take the Nifty above 5730 to maintain their upwards momentum whereas the Bears need to take the Nifty below 5655 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA (5691) but has closed above its 13EMA (5674) and 21EMA (5630) and above all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart the volumes have remained stagnant with the Nifty also remaining static indicating the equilibrium that exists in the market. The MACD continues to weaken with the histogram remaining in the negative and growing gradually. The ADX is also suggesting a weakening of the up move but the direction favored is still upwards. The Parabolic SAR continues with its sell signal with the SL now at 5743.
5) Considering the above, our trading plan for the day is as under.
a) Around 5660 we will open fresh long positions with a SL of 5640 and a target of 5720. We will add to these long positions only above 5750.
b) Around 5730 we will open fresh short positions with a SL of 5750 and a target of 5685. We will add to these short positions only below 5640.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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