After a intra-day shocker, Bulls stage a comeback to make yet another new high.
As discussed yesterday, the healthy consolidation on the Nifty, gathered some volatility by increasing the trading range on both the sides. The Nifty opened with a positive gap of 26 points and immediately nosedived below the previous day's lows to find a new bottom near 5840 and then the Bulls in a late evening swing took the Nifty past its highs to close at 5931. Our trading plan (a) got triggered twice. First time it hit the SL and we had to book a loss of 25 points. Second time we hit the target and made 65 points.
1) The Elder Ray readings : Bull Power rises from +146 to +148 Bear Power also rises from +120 to +45 indicating that the Bears have failed to make good of the chance to regain their footing yesterday. For today, the Bulls need to overcome the levels of 5965 to maintain their upwards momentum whereas the Bears need to breach the levels of 5820 to regain their lost grounds.
2) The Nifty again closed well above its key EMAs and all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart the volumes have increased with the rise in the Nifty indicating sustainence of the up-move. The MACD is rising along with the histogram being in the positive. The ADX is suggesting a reduction in momentum for the up-move and a rise in momentum for the down-move. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5980 we will open fresh short positions with a SL of 6000 and a target of 5900. We will add to these short positions only below 5875.
b) Around 5890 we will open fresh long positions with a SL of 5875 and a target of 5955. We will add to these long positions only above 6000.
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 healthy consolidation on the Nifty, gathered some volatility by increasing the trading range on both the sides. The Nifty opened with a positive gap of 26 points and immediately nosedived below the previous day's lows to find a new bottom near 5840 and then the Bulls in a late evening swing took the Nifty past its highs to close at 5931. Our trading plan (a) got triggered twice. First time it hit the SL and we had to book a loss of 25 points. Second time we hit the target and made 65 points.
1) The Elder Ray readings : Bull Power rises from +146 to +148 Bear Power also rises from +120 to +45 indicating that the Bears have failed to make good of the chance to regain their footing yesterday. For today, the Bulls need to overcome the levels of 5965 to maintain their upwards momentum whereas the Bears need to breach the levels of 5820 to regain their lost grounds.
2) The Nifty again closed well above its key EMAs and all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart the volumes have increased with the rise in the Nifty indicating sustainence of the up-move. The MACD is rising along with the histogram being in the positive. The ADX is suggesting a reduction in momentum for the up-move and a rise in momentum for the down-move. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5980 we will open fresh short positions with a SL of 6000 and a target of 5900. We will add to these short positions only below 5875.
b) Around 5890 we will open fresh long positions with a SL of 5875 and a target of 5955. We will add to these long positions only above 6000.
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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