Nifty pauses yet again near the top of the trading range. May attempt breakout.
As discussed yesterday, we saw the presence of the Bullish Undertone that prevailed on the Nifty, with the Nifty, in-spite of weak global cues, opening with just a mild down gap of 5 points, then trading in a very narrow band below the 5700 mark, and in the last hour of trade, bouncing back and again pausing near the resistance band of 5730 5750. Today, it has yet another bright chance of staging a breakout, which it has missed since last few weeks now.
1) The Elder Ray readings : Bull Power reduces from +46 to +38 Bear Power rises from +17 to +9 indicating that the Bulls have loosened a bit but the Bears are also nearer to their safe zone now. For today, the Bulls need to overcome the levels of 5715 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5670 to regain their lost grounds.
2) The Nifty has closed yet again above all its key EMAs and also above all its key DMAs.
3) The stochastics are fast approaching the overbought zone.
4) In the above chart, the volumes have decreased with the small rise in the Nifty, indicating that the Breakout attempt may fizzle out yet again. The MACD continues to show a positive divergence in favor of the Bulls. The ADX also suggests a loss of momentum for the Bulls, but still favors the up move. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5680 we will open fresh long positions with a SL of 5655 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 5690. We will add to these short positions only below 5650.
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 yesterday, we saw the presence of the Bullish Undertone that prevailed on the Nifty, with the Nifty, in-spite of weak global cues, opening with just a mild down gap of 5 points, then trading in a very narrow band below the 5700 mark, and in the last hour of trade, bouncing back and again pausing near the resistance band of 5730 5750. Today, it has yet another bright chance of staging a breakout, which it has missed since last few weeks now.
1) The Elder Ray readings : Bull Power reduces from +46 to +38 Bear Power rises from +17 to +9 indicating that the Bulls have loosened a bit but the Bears are also nearer to their safe zone now. For today, the Bulls need to overcome the levels of 5715 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5670 to regain their lost grounds.
2) The Nifty has closed yet again above all its key EMAs and also above all its key DMAs.
3) The stochastics are fast approaching the overbought zone.
4) In the above chart, the volumes have decreased with the small rise in the Nifty, indicating that the Breakout attempt may fizzle out yet again. The MACD continues to show a positive divergence in favor of the Bulls. The ADX also suggests a loss of momentum for the Bulls, but still favors the up move. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5680 we will open fresh long positions with a SL of 5655 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 5690. We will add to these short positions only below 5650.
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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