Bulls make a new high, Bears break previous day's low. Critical days ahead.
As discussed yesterday, our opinion was that the Bulls were loosening their grip on the Nifty a bit. The Nifty opened with a 15 point up gap, made a new high and then immediately got sold off to break the previous day's low and close with a loss of 10 points. Our trading plan (a) got triggered twice. Once it met with the SL and we lost 20 points. Second time, it met the target and we booked a profit of 45 points. Then our plan (b) got triggered and that too made us a good 25 points profit by EOD.
1) The Elder Ray readings : Bull Power rises from +95 to +130 Bear Power also rises from +64 to +30 indicating that both the Bulls and the Bears have increased their momentum now and it will be interesting as to who takes the upper hand now onwards. For today, the Bulls need to overcome the levels of 5975 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5845 to regain their lost grounds.
2) The Nifty continues to close well above its key EMAs and also its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating volatile times ahead. The MACD continues to flatten out whereas the histogram too continues to fall. The ADX is suggesting a mild rise in the Bullish momentum. The Parabolic SAR continues with its buy call with a SL at 5802 now.
5) Considering the above, our trading plan for the day is as under.
a) Around 5940 we will open fresh short positions with a SL of 5955 and a target of 5880. We will add to these short positions only below 5850.
b) Around 5865 we will open fresh long positions with a SL of 5850 and a target of 5905. We will add to these long positions only above 5955.
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, our opinion was that the Bulls were loosening their grip on the Nifty a bit. The Nifty opened with a 15 point up gap, made a new high and then immediately got sold off to break the previous day's low and close with a loss of 10 points. Our trading plan (a) got triggered twice. Once it met with the SL and we lost 20 points. Second time, it met the target and we booked a profit of 45 points. Then our plan (b) got triggered and that too made us a good 25 points profit by EOD.
1) The Elder Ray readings : Bull Power rises from +95 to +130 Bear Power also rises from +64 to +30 indicating that both the Bulls and the Bears have increased their momentum now and it will be interesting as to who takes the upper hand now onwards. For today, the Bulls need to overcome the levels of 5975 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5845 to regain their lost grounds.
2) The Nifty continues to close well above its key EMAs and also its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating volatile times ahead. The MACD continues to flatten out whereas the histogram too continues to fall. The ADX is suggesting a mild rise in the Bullish momentum. The Parabolic SAR continues with its buy call with a SL at 5802 now.
5) Considering the above, our trading plan for the day is as under.
a) Around 5940 we will open fresh short positions with a SL of 5955 and a target of 5880. We will add to these short positions only below 5850.
b) Around 5865 we will open fresh long positions with a SL of 5850 and a target of 5905. We will add to these long positions only above 5955.
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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