Nifty breaks equilibrium on the up side, but just. More followup needed.
As discussed yesterday, the Nifty, which was in equilibrium, aided by strong global cues, broke out on the up side. However, there were not much gains after this positive opening, making one to wait for more upside confirmation now. Our trading plan (a) got triggered, but did not meet its target neither its SL, and we had to book out at the end of day with a small loss of 5 points.
1) The Elder Ray readings : Bull Power rises from +49 to +72 Bear Power reduces from -34 to +43 indicating that the Bulls have got stronger and that the Bears are now out of their safe zone. For today, the Bulls need to overcome the levels of 5955 to maintain their upwards momentum whereas the Bears need to breach the levels of 5870 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 just below the overbought zone and are pointing upwards now.
4) In the above chart, the volumes have remained stagnant with the Nifty gaining in value, indicating strength in the up move but warranting caution. The MACD remains non-committal with the histogram hovering around the zero line. The ADX suggests a rise in momentum for the up move, while the Parabolic SAR continues with its sell signal with a SL of 5954.
5) Considering the above, our trading plan for the day is as under.
a) Around 5900 we will open fresh long positions with a SL of 5880 and a target of 5950. We will add to these long positions only above 5975.
b) Around 5955 we will open fresh short positions with a SL of 5975 and a target of 5910. We will add to these short positions only below 5880.
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 Nifty, which was in equilibrium, aided by strong global cues, broke out on the up side. However, there were not much gains after this positive opening, making one to wait for more upside confirmation now. Our trading plan (a) got triggered, but did not meet its target neither its SL, and we had to book out at the end of day with a small loss of 5 points.
1) The Elder Ray readings : Bull Power rises from +49 to +72 Bear Power reduces from -34 to +43 indicating that the Bulls have got stronger and that the Bears are now out of their safe zone. For today, the Bulls need to overcome the levels of 5955 to maintain their upwards momentum whereas the Bears need to breach the levels of 5870 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 just below the overbought zone and are pointing upwards now.
4) In the above chart, the volumes have remained stagnant with the Nifty gaining in value, indicating strength in the up move but warranting caution. The MACD remains non-committal with the histogram hovering around the zero line. The ADX suggests a rise in momentum for the up move, while the Parabolic SAR continues with its sell signal with a SL of 5954.
5) Considering the above, our trading plan for the day is as under.
a) Around 5900 we will open fresh long positions with a SL of 5880 and a target of 5950. We will add to these long positions only above 5975.
b) Around 5955 we will open fresh short positions with a SL of 5975 and a target of 5910. We will add to these short positions only below 5880.
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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