Nifty continues to push at the top of the trading range in an attempted breakout.
As discussed yesterday, the Nifty was at the top of the trading range. The Nifty opened with a 10 point gap down and then made several attempts at the 5730 5750 resistance band during the trading session, all through never really breaching 5690. The Nifty closed just below the resistance band at 5724 with a gain of 20 points. This has been a 5th consecutive positive close.
1) The Elder Ray readings : Bull Power rises from +38 to +52 Bear Power reduces from +9 to +15 indicating the grip of the Bulls that exists on the Nifty. For today, the Bulls need to overcome the levels of 5740 to maintain their upwards momentum whereas the Bears need to breach the levels of 5680 on the Nifty 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 have got back into the overbought zone within 9 trading sessions and with abysmally low trading volumes.
4) In the above chart the volumes continue to remain low with a small rise in the Nifty indicating the lack of participation. The MACD continues to show a positive divergence but still not triggering a positive buy signal. The MACD histogram continues in the negative. The ADX continues to show favor to the up move. 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 5700 we will open fresh long positions with a SL of 5680 and a target of 5740. We will add to these long positions only above 5770.
b) Around 5740 we will open fresh short positions with a SL of 5770 and a target of 5710. We will add to these short positions only below 5680.
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, the Nifty was at the top of the trading range. The Nifty opened with a 10 point gap down and then made several attempts at the 5730 5750 resistance band during the trading session, all through never really breaching 5690. The Nifty closed just below the resistance band at 5724 with a gain of 20 points. This has been a 5th consecutive positive close.
1) The Elder Ray readings : Bull Power rises from +38 to +52 Bear Power reduces from +9 to +15 indicating the grip of the Bulls that exists on the Nifty. For today, the Bulls need to overcome the levels of 5740 to maintain their upwards momentum whereas the Bears need to breach the levels of 5680 on the Nifty 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 have got back into the overbought zone within 9 trading sessions and with abysmally low trading volumes.
4) In the above chart the volumes continue to remain low with a small rise in the Nifty indicating the lack of participation. The MACD continues to show a positive divergence but still not triggering a positive buy signal. The MACD histogram continues in the negative. The ADX continues to show favor to the up move. 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 5700 we will open fresh long positions with a SL of 5680 and a target of 5740. We will add to these long positions only above 5770.
b) Around 5740 we will open fresh short positions with a SL of 5770 and a target of 5710. We will add to these short positions only below 5680.
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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