All eyes will be on the RBI as the Bullish consolidation on the Nifty continues.
We have been away from the markets for the last couple of days, and seem to have not missed much of the action. The Nifty has been continuing to gyrate within a 50 point range between 5650 and 5700 maintaining its bullish stance all through these trading sessions by not breaching the 5640 mark any time.
1) The Elder Ray readings : Bull Power rises from +13 to +17 Bear Power reduces from -43 to -37 indicating that both the Bulls and the Bears have a equal grip on the Nifty as of now. For today, the Bulls need to take the Nifty over 5725 to maintain their upwards momentum, whereas the Bears need to tak the Nifty below 5635 to maintain their downwards momenutum.
2) The Nifty has now closed below its 8EMA (5683) and 13EMA (5684) but has closed just above its 21EMA (5663) and has closed above all its key DMAs.
3) The stochastics are now in the neutral zone and are pointing in opposite directions, indicating that Nifty may now move in either of the directions.
4) In the above chart, the volumes have decreased yesterday indicating caution excercised by the market participants just before the RBI monetary policy review. The MACD continues to fall with the histogram staying in the negative. The ADX is indicating a loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues to give out its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5650, we will open fresh long positions with a SL of 5635 and a target of 5690. We will add to these long positions only above 5700.
b) Around 5695, we will open fresh short positions with a SL of 5700 and a target of 5655. We will add to these short positions only below 5635.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
We have been away from the markets for the last couple of days, and seem to have not missed much of the action. The Nifty has been continuing to gyrate within a 50 point range between 5650 and 5700 maintaining its bullish stance all through these trading sessions by not breaching the 5640 mark any time.
1) The Elder Ray readings : Bull Power rises from +13 to +17 Bear Power reduces from -43 to -37 indicating that both the Bulls and the Bears have a equal grip on the Nifty as of now. For today, the Bulls need to take the Nifty over 5725 to maintain their upwards momentum, whereas the Bears need to tak the Nifty below 5635 to maintain their downwards momenutum.
2) The Nifty has now closed below its 8EMA (5683) and 13EMA (5684) but has closed just above its 21EMA (5663) and has closed above all its key DMAs.
3) The stochastics are now in the neutral zone and are pointing in opposite directions, indicating that Nifty may now move in either of the directions.
4) In the above chart, the volumes have decreased yesterday indicating caution excercised by the market participants just before the RBI monetary policy review. The MACD continues to fall with the histogram staying in the negative. The ADX is indicating a loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues to give out its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5650, we will open fresh long positions with a SL of 5635 and a target of 5690. We will add to these long positions only above 5700.
b) Around 5695, we will open fresh short positions with a SL of 5700 and a target of 5655. We will add to these short positions only below 5635.
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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