Bulls stop for a breather. Nifty may correct a bit, but Bulls still in control.
As discussed yesterday, the Bullish up-move continued albeit not unabated. The Nifty opened flat and immediately touched almost 5900, where profit booking set in and the Nifty drifted a bit lower. However, the Bears were not able to push down the Nifty enough and in a late evening burst of energy, the Nifty regained almost all the lost grounds. None of our trading plans got triggered, and we were happy sitting on the sidelines, watching the Nifty gyrate in a narrow band.
1) The Elder Ray readings : Bull Power reduces from +182 to +172 Bear Power also reduces from +125 to +128 indicating that the Bulls are still in control and have just stopped a bit for a breather. For today, the Bulls need to overcome the levels of 5925 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5755 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 are well into the overbought zone and are showing a minor diversion.
4) In the above chart, the volumes have decreased with a small fall in the Nifty indicating that a healthy consolidation is on. The MACD continues to rise along with the histogram. The ADX is showing a bit of loss of momentum for the up-move, however the down-move is not gaining any momentum. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5845 we will open fresh long positions with a SL of 5830 and a target of 5910. We will add to these long positions only above 5935.
b) Around 5920 we will open fresh short positions with a SL of 5935 and a target of 5865. We will add to these short positions only below 5830.
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 Bullish up-move continued albeit not unabated. The Nifty opened flat and immediately touched almost 5900, where profit booking set in and the Nifty drifted a bit lower. However, the Bears were not able to push down the Nifty enough and in a late evening burst of energy, the Nifty regained almost all the lost grounds. None of our trading plans got triggered, and we were happy sitting on the sidelines, watching the Nifty gyrate in a narrow band.
1) The Elder Ray readings : Bull Power reduces from +182 to +172 Bear Power also reduces from +125 to +128 indicating that the Bulls are still in control and have just stopped a bit for a breather. For today, the Bulls need to overcome the levels of 5925 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5755 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 are well into the overbought zone and are showing a minor diversion.
4) In the above chart, the volumes have decreased with a small fall in the Nifty indicating that a healthy consolidation is on. The MACD continues to rise along with the histogram. The ADX is showing a bit of loss of momentum for the up-move, however the down-move is not gaining any momentum. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5845 we will open fresh long positions with a SL of 5830 and a target of 5910. We will add to these long positions only above 5935.
b) Around 5920 we will open fresh short positions with a SL of 5935 and a target of 5865. We will add to these short positions only below 5830.
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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