Bulls seem to be losing momentum. Bears are looking weak. Caution warranted.
On Friday, the Bulls made yet another high on the Nifty, at 5950 and then faltered. They not only gave away the gains due to a positive opening and a new intra-day high, they managed to close the Nifty just above 5900 but almost 30 points below the opening mark. This is an initial indication of the weakening uptrend. A break below 5880 and further below 5830 would set the Bears in.
1) The Elder Ray readings : Bull Power reduces from +148 to +139 Bear Power also reduces from +45 to +78 indicating that though the Bulls are faltering, the Bears are far away to take advantage as yet. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5835 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 are in the overbought zone.
4) In the above chart, the volumes have slightly increased with the fall in the Nifty indicating caution in the up move. The MACD has risen to a top and is smoothing, the histogram is showing signs of falling. The ADX is showing reduction in the momentum for the Bulls. The Parabolic SAR continues with its Buy call.
5) Considering the above, our trading plan for the day is as under.
a) Around 5880 we will open fresh long positions with a SL of 5860 and a target of 5925. We will add to these long positions only above 5955.
b) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5890. We will add to these short positions only below 5860.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, the Bulls made yet another high on the Nifty, at 5950 and then faltered. They not only gave away the gains due to a positive opening and a new intra-day high, they managed to close the Nifty just above 5900 but almost 30 points below the opening mark. This is an initial indication of the weakening uptrend. A break below 5880 and further below 5830 would set the Bears in.
1) The Elder Ray readings : Bull Power reduces from +148 to +139 Bear Power also reduces from +45 to +78 indicating that though the Bulls are faltering, the Bears are far away to take advantage as yet. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5835 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 are in the overbought zone.
4) In the above chart, the volumes have slightly increased with the fall in the Nifty indicating caution in the up move. The MACD has risen to a top and is smoothing, the histogram is showing signs of falling. The ADX is showing reduction in the momentum for the Bulls. The Parabolic SAR continues with its Buy call.
5) Considering the above, our trading plan for the day is as under.
a) Around 5880 we will open fresh long positions with a SL of 5860 and a target of 5925. We will add to these long positions only above 5955.
b) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5890. We will add to these short positions only below 5860.
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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