The bulls are in the drivers seat and may take the Nifty past 5070.We were absent from the market yesterday, owing to our social engagements. However, we are back today and here are the technicals as of now.1) The Elder Ray readings : Bull Power increases from +138 to +156 Bear Power reduces further from +89 to +124, indicating the steam in the Bullish uptrend in the near term is intact, however extreme caution must be exercised for opening up of fresh long positions at current levels.2) The Nifty is still trading above all its key EMAs and also above its 50DMA and 100DMA which indicates that the bulls are in control of the market. However, the 200DMA is still pointing downwards, which should not be ignored.3) The stochastics continue to be in the overbought zone.4) In the above chart, the Nifty continues to touch the upper Bollinger Band and that is an indication that the up-move may be nearing its end. The MACD s still Bullish however the ADX is indicating that the up-move may continue, but its sustainability is reducing.5) Considering the above, our trading plan for the day is as under.a) Around 5040, we will open fresh short positions with a SL of 5070 and a target of 4990. We will add to these long positions only below 4965.b) Around 5005, we will open fresh long positions with a SL of 4985 and a target of 5065. We will add to these long positions only above 5080.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The bulls are in the drivers seat and may take the Nifty past 5070.
We were absent from the market yesterday, owing to our social engagements. However, we are back today and here are the technicals as of now.
1) The Elder Ray readings : Bull Power increases from +138 to +156 Bear Power reduces further from +89 to +124, indicating the steam in the Bullish uptrend in the near term is intact, however extreme caution must be exercised for opening up of fresh long positions at current levels.
2) The Nifty is still trading above all its key EMAs and also above its 50DMA and 100DMA which indicates that the bulls are in control of the market. However, the 200DMA is still pointing downwards, which should not be ignored.
3) The stochastics continue to be in the overbought zone.
4) In the above chart, the Nifty continues to touch the upper Bollinger Band and that is an indication that the up-move may be nearing its end. The MACD s still Bullish however the ADX is indicating that the up-move may continue, but its sustainability is reducing.
5) Considering the above, our trading plan for the day is as under.
a) Around 5040, we will open fresh short positions with a SL of 5070 and a target of 4990. We will add to these long positions only below 4965.
b) Around 5005, we will open fresh long positions with a SL of 4985 and a target of 5065. We will add to these long positions only above 5080.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty has gone too far too fast and is likely to meet resistance ahead.As discussed yesterday, the Nifty opened with a gap up and maintained its positive bias throughout the day. Yesterday, the second part of our plan b came into action straightaway and the entire session stuck to that scenario. During the current series, we have seen the Nifty rise sharply and then consolidate thrice. If that continues, today could well be the day of consolidation.1) The Elder Ray readings : Bull Power rises from +81 to +152 Bear Power reduces from +28 to +81 indicating that the Bulls are in full control of the market and unless the Bears are able to break 4825, they will have hard times in this market. 4825 seems far away as of now.2) The Nifty is now trading well above all its key EMAs and also above the 50 and the 100DMA. The 200DMA stands at 5233.3) The stochastics are well and deeply in the overbought zone and have remained there for 8 consecutive sessions now, indicating that the bears could strike any moment now.4) In the above chart, the volumes have increased in yesterday's rise, confirming the up trend. However, the Nifty has pierced the upper Bollinger Band, and it is time for caution in any long positions now. The MACD histogram is at its peak again cautioning to safeguard any long positions. However, the ADX is signaling strong momentum for the up-move.5) Considering the above, our trading plan for the day is as under,a) Around 5010, we will open fresh short positions with a SL of 5030 and a target of 4930. We will add to these short positions only below 4905.b) Around 4925, we will open fresh long positions with a SL of 4900 and a target of 4990. We will add to these long positions only above 5040.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty has gone too far too fast and is likely to meet resistance ahead.
As discussed yesterday, the Nifty opened with a gap up and maintained its positive bias throughout the day. Yesterday, the second part of our plan b came into action straightaway and the entire session stuck to that scenario. During the current series, we have seen the Nifty rise sharply and then consolidate thrice. If that continues, today could well be the day of consolidation.
1) The Elder Ray readings : Bull Power rises from +81 to +152 Bear Power reduces from +28 to +81 indicating that the Bulls are in full control of the market and unless the Bears are able to break 4825, they will have hard times in this market. 4825 seems far away as of now.
2) The Nifty is now trading well above all its key EMAs and also above the 50 and the 100DMA. The 200DMA stands at 5233.
3) The stochastics are well and deeply in the overbought zone and have remained there for 8 consecutive sessions now, indicating that the bears could strike any moment now.
4) In the above chart, the volumes have increased in yesterday's rise, confirming the up trend. However, the Nifty has pierced the upper Bollinger Band, and it is time for caution in any long positions now. The MACD histogram is at its peak again cautioning to safeguard any long positions. However, the ADX is signaling strong momentum for the up-move.
5) Considering the above, our trading plan for the day is as under,
a) Around 5010, we will open fresh short positions with a SL of 5030 and a target of 4930. We will add to these short positions only below 4905.
b) Around 4925, we will open fresh long positions with a SL of 4900 and a target of 4990. We will add to these long positions only above 5040.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty is likely to consolidate further with a positive bias.As discussed yesterday, the Nifty opened with a gap down and traded with a negative bias for most of the session, until at the very last hour, it spiked up to close with a modest gain of 8 points. Today, given the global cues, the Nifty is likely to open with a positive gap up, however, its sustainability at higher levels is suspicious.1) The Elder Ray readings : Bull Power reduces from +112 to +81 Bear Power increases from +47 to +28 indicating that the Bears are gaining some strength, however they are still not in their safe zone. On the other hand, the Bulls are not able to sustain their momentum.2) The Nifty is trading well above its key EMAs and is also above its 50DMA which is at 4843 and is rising. The Nifty is expected to remain strong above this level.3) The stochastics are still deeply within the overbought zone. However, they are not showing any indication of coming out of that zone.4) In the above chart, the volumes have again depleted in yesterday's rise in the Nifty, raising suspicion on the sustainability of the move. The MACD histogram is showing a bearish diversion, and the ADX is showing loss of momentum in the up-move.5) Considering the above, our trading plan for the day is as under,a) Below 4905, we will open fresh short positions with a SL of 4925 and a target of 4855. We will add to these short positions only below 4820.b) Above 4865, we will open fresh long positions with a SL of 4845 and a target of 4905. We will add to these long positions only above 4925.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty is likely to consolidate further with a positive bias.
As discussed yesterday, the Nifty opened with a gap down and traded with a negative bias for most of the session, until at the very last hour, it spiked up to close with a modest gain of 8 points. Today, given the global cues, the Nifty is likely to open with a positive gap up, however, its sustainability at higher levels is suspicious.
1) The Elder Ray readings : Bull Power reduces from +112 to +81 Bear Power increases from +47 to +28 indicating that the Bears are gaining some strength, however they are still not in their safe zone. On the other hand, the Bulls are not able to sustain their momentum.
2) The Nifty is trading well above its key EMAs and is also above its 50DMA which is at 4843 and is rising. The Nifty is expected to remain strong above this level.
3) The stochastics are still deeply within the overbought zone. However, they are not showing any indication of coming out of that zone.
4) In the above chart, the volumes have again depleted in yesterday's rise in the Nifty, raising suspicion on the sustainability of the move. The MACD histogram is showing a bearish diversion, and the ADX is showing loss of momentum in the up-move.
5) Considering the above, our trading plan for the day is as under,
a) Below 4905, we will open fresh short positions with a SL of 4925 and a target of 4855. We will add to these short positions only below 4820.
b) Above 4865, we will open fresh long positions with a SL of 4845 and a target of 4905. We will add to these long positions only above 4925.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With the dollar index peaking, the Nifty is likely to open and stay in the negative.As discussed in our last post, the downtrend on the Nifty is likely to resume today. Given the global cues, the S&P downgrading of 9 Euro countries, and the rising dollar index, the Nifty is likely to open with a negative gap and is also likely to trade in the negative for most of the session.1) The Elder Ray readings : Bull Power rises from +95 to +112 Bear Power reduces from +30 to +47. Indicating that the Bulls are still in control and they have a challenge to defend 4785 below which the Bears will gain strength.2) The Nifty is trading above its key EMAs and is also above the its 50 DMA for the first time after over a month. Some profit booking should be expected at these levels.3) The stochastics are well inside the overbought zone and are pointing towards a down move.4) In the above chart, the Nifty has formed three stars just below the top Bollinger Band, suggesting indecision among the market participants, even as the volumes are spiking up. This is suggestive of some shorts being added on to the Nifty. The MACD is threatening to peak out, and the ADX too is indicating indecision. A major move should be expected here.5) Considering the above, our trading plan for the day is as undera) Above 4810, we will open fresh long positions with a target of 4865 and a SL of 4780. We will add to these long positions only above 4895.b) Below 4870, we will open fresh short positions with a target of 4820 and a SL of 4885. We will add to these short positions only below 4800.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the dollar index peaking, the Nifty is likely to open and stay in the negative.
As discussed in our last post, the downtrend on the Nifty is likely to resume today. Given the global cues, the S&P downgrading of 9 Euro countries, and the rising dollar index, the Nifty is likely to open with a negative gap and is also likely to trade in the negative for most of the session.
1) The Elder Ray readings : Bull Power rises from +95 to +112 Bear Power reduces from +30 to +47. Indicating that the Bulls are still in control and they have a challenge to defend 4785 below which the Bears will gain strength.
2) The Nifty is trading above its key EMAs and is also above the its 50 DMA for the first time after over a month. Some profit booking should be expected at these levels.
3) The stochastics are well inside the overbought zone and are pointing towards a down move.
4) In the above chart, the Nifty has formed three stars just below the top Bollinger Band, suggesting indecision among the market participants, even as the volumes are spiking up. This is suggestive of some shorts being added on to the Nifty. The MACD is threatening to peak out, and the ADX too is indicating indecision. A major move should be expected here.
5) Considering the above, our trading plan for the day is as under
a) Above 4810, we will open fresh long positions with a target of 4865 and a SL of 4780. We will add to these long positions only above 4895.
b) Below 4870, we will open fresh short positions with a target of 4820 and a SL of 4885. We will add to these short positions only below 4800.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
|
Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.
