Nifty consolidates in a tight range as the Bulls hold on their grip.
As discussed in our last post, the Nifty showed signs of exhaustion by moving in a very tight range for the last two trading sessions. We had also suggested that the Bulls are still in control, and as such, all minor dips were swiftly bought into, and the Nifty continued to make newer highs albeit with very minor gains. We took a day off yesterday, and it seems we have not missed much of the action.
1) The Elder Ray readings : Bull Power rises from +145 to +146 Bear Power reduces from +109 to +120 indicating that the Bulls hold the drivers seat on the Nifty as of now. For today, the Bulls need to overcome the levels of 5940 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5800 to regain their lost grounds.
2) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have reduced but are increasing with the minor ups in the Nifty indicating positive movements ahead. The MACD is now rising and the histogram is showing some flattening out, indicating high time for the Bulls to keep up the momentum. The ADX is showing a rise in momentum for the Bulls. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875 we will open fresh long positions with a SL of 5850 and a target of 5935. We will add to these long positions only above 5950.
b) Around 5940 we will open fresh short positions with a SL of 5950 and a target of 5900. We will add to these short positions only below 5850.
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 in our last post, the Nifty showed signs of exhaustion by moving in a very tight range for the last two trading sessions. We had also suggested that the Bulls are still in control, and as such, all minor dips were swiftly bought into, and the Nifty continued to make newer highs albeit with very minor gains. We took a day off yesterday, and it seems we have not missed much of the action.
1) The Elder Ray readings : Bull Power rises from +145 to +146 Bear Power reduces from +109 to +120 indicating that the Bulls hold the drivers seat on the Nifty as of now. For today, the Bulls need to overcome the levels of 5940 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5800 to regain their lost grounds.
2) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have reduced but are increasing with the minor ups in the Nifty indicating positive movements ahead. The MACD is now rising and the histogram is showing some flattening out, indicating high time for the Bulls to keep up the momentum. The ADX is showing a rise in momentum for the Bulls. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875 we will open fresh long positions with a SL of 5850 and a target of 5935. We will add to these long positions only above 5950.
b) Around 5940 we will open fresh short positions with a SL of 5950 and a target of 5900. We will add to these short positions only below 5850.
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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