Look out to buy the Nifty on dips, as the up-trend is still intactAs discussed yesterday, the up and above direction on the Nifty continued unabated, even after the rough shock on the cancellation of 2G licenses. The Nifty managed to close with gains of 34 points. Today, given the global cues, the Nifty is likely to open flat.1) The Elder Ray readings : Bull Power increases from +172 to +189 Bear Power reduces from +86 to +125, showing clearly that the Bears are overshadowed by the Bulls, and any dips in the market will be bought out swiftly.2) The Nifty is trading well above all its key EMAs and key DMAs, indicating that the up trend is still intact. However, looking at the steep gradient, it suggests, that we have come up too far too fast, and caution needs to be exercised.3) The stochastics are deep in the overbought zone, and a mild correction cannot be ruled out at this stage.4) In the above chart, the volumes have increased yesterday, however the Nifty has formed a "doji" in the supply zone, indicating exhaustion of the current up-trend. the MACD too is peaking and the ADX is suggesting non sustainability of the up-move. However, the ADX is also indicating that the Bears are losing out on momentum consistently.5) Considering the above, our trading plan for the day is as under,a) Below 5305, we will open fresh short positions with a SL of 5335 and a target of 5230. We will add to these short positions only below 5205.b) Above 5240, we will open fresh long positions with a SL of 5225 and a target of 5310. We will add to these long positions only above 5340.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Look out to buy the Nifty on dips, as the up-trend is still intact
As discussed yesterday, the up and above direction on the Nifty continued unabated, even after the rough shock on the cancellation of 2G licenses. The Nifty managed to close with gains of 34 points. Today, given the global cues, the Nifty is likely to open flat.
1) The Elder Ray readings : Bull Power increases from +172 to +189 Bear Power reduces from +86 to +125, showing clearly that the Bears are overshadowed by the Bulls, and any dips in the market will be bought out swiftly.
2) The Nifty is trading well above all its key EMAs and key DMAs, indicating that the up trend is still intact. However, looking at the steep gradient, it suggests, that we have come up too far too fast, and caution needs to be exercised.
3) The stochastics are deep in the overbought zone, and a mild correction cannot be ruled out at this stage.
4) In the above chart, the volumes have increased yesterday, however the Nifty has formed a "doji" in the supply zone, indicating exhaustion of the current up-trend. the MACD too is peaking and the ADX is suggesting non sustainability of the up-move. However, the ADX is also indicating that the Bears are losing out on momentum consistently.
5) Considering the above, our trading plan for the day is as under,
a) Below 5305, we will open fresh short positions with a SL of 5335 and a target of 5230. We will add to these short positions only below 5205.
b) Above 5240, we will open fresh long positions with a SL of 5225 and a target of 5310. We will add to these long positions only above 5340.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty is poised to cross over 5300 levels with a positive gap up opening.As discussed yesterday, the roadblocks to the bullish up-move held the Nifty in the negative zone for the first half of the session. However, once the bears weakness was obvious as they could not pull down the Nifty below 5140, the Bulls took over and the Nifty then jumped over the roadblocks to close at a handsome level of 5236. Today, given the global cues, the Nifty is likely to open with a positive gap up, and the next targets could be near 5300 5340, in a few sessions from now.1) The Elder Ray readings : Bull Power rises from +170 to +172 Bear Power reduces from +75 to +86, indicating the strength of the Bulls and the weakness of the Bears in the current scenario.2) The Nifty is now trading above all its key EMAs and all its key DMAs too. This is a clear bullish signal.3) The stochastics are in the overbought zone, but have been there for 15 sessions now.4) In the above chart, the volumes have again increased in yesterday's rise, confirming the up-trend. The MACD is peaking and the Histogram is stagnant, indicating some caution is required at higher levels. The ADX is also suggesting that the up-move may not be sustainable, however, it is also indicating loss of strength for the down-move.5) Considering the above, our trading plan for the day is as under.a) Above 5210, we will open fresh long positions with a SL of 5190 and a target of 5280. We will add to these long positions only above 5295.b) Below 5285, we will open fresh short positions with a SL of 5305 and a target of 5210. We will add to these short positions only below 5185.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty is poised to cross over 5300 levels with a positive gap up opening.
As discussed yesterday, the roadblocks to the bullish up-move held the Nifty in the negative zone for the first half of the session. However, once the bears weakness was obvious as they could not pull down the Nifty below 5140, the Bulls took over and the Nifty then jumped over the roadblocks to close at a handsome level of 5236. Today, given the global cues, the Nifty is likely to open with a positive gap up, and the next targets could be near 5300 5340, in a few sessions from now.
1) The Elder Ray readings : Bull Power rises from +170 to +172 Bear Power reduces from +75 to +86, indicating the strength of the Bulls and the weakness of the Bears in the current scenario.
2) The Nifty is now trading above all its key EMAs and all its key DMAs too. This is a clear bullish signal.
3) The stochastics are in the overbought zone, but have been there for 15 sessions now.
4) In the above chart, the volumes have again increased in yesterday's rise, confirming the up-trend. The MACD is peaking and the Histogram is stagnant, indicating some caution is required at higher levels. The ADX is also suggesting that the up-move may not be sustainable, however, it is also indicating loss of strength for the down-move.
5) Considering the above, our trading plan for the day is as under.
a) Above 5210, we will open fresh long positions with a SL of 5190 and a target of 5280. We will add to these long positions only above 5295.
b) Below 5285, we will open fresh short positions with a SL of 5305 and a target of 5210. We will add to these short positions only below 5185.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With Nifty poised near key resistances, the bull run may run into roadblocksAs discussed yesterday, instead of the intraday volatility, the daily volatility increased, and we saw the Nifty recovering the entire losses of Monday, within just one trading session. This move has bolstered the bulls who now have the last few roadblocks to jump over. Today, given the global cues, the Nifty is likely to have a flat to soft opening.1) The Elder Ray readings : Bull Power increases from +146 to +170, Bear Power reduces from +57 to +75, indicating that the Bulls are still strong, but are weakening, as although the Nifty has recovered all their losses, the Bulls have not recovered all their strength. On the other hand, the Bears are continuing to lose their power, and have not shown any intent of dragging down the Nifty.2) The key EMAs on the Nifty have resumed their upward movement after a day's pause. The Nifty is trading at the 200 DMA which is consistently falling.3) The stochastics have returned to the overbought zone and are now pointing upwards.4) In the above chart, the volumes have increased in yesterday's up-move, confirming the strength of this bull run. However, the MACD is at its peak, while the MACD histogram is showing a negative divergence. The ADX is also showing that the Bull run is weakening.5) Considering the above, our trading plan for the day is as under.a) Around 5180, we will open fresh long positions with a SL of 5150 and a target of 5260. We will add to these long positions only above 5290.b) Around 5270, we will open fresh short positions with a SL of 5285 and a target of 5190. We will add to these short positions only below 5145.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With Nifty poised near key resistances, the bull run may run into roadblocks
As discussed yesterday, instead of the intraday volatility, the daily volatility increased, and we saw the Nifty recovering the entire losses of Monday, within just one trading session. This move has bolstered the bulls who now have the last few roadblocks to jump over. Today, given the global cues, the Nifty is likely to have a flat to soft opening.
1) The Elder Ray readings : Bull Power increases from +146 to +170, Bear Power reduces from +57 to +75, indicating that the Bulls are still strong, but are weakening, as although the Nifty has recovered all their losses, the Bulls have not recovered all their strength. On the other hand, the Bears are continuing to lose their power, and have not shown any intent of dragging down the Nifty.
2) The key EMAs on the Nifty have resumed their upward movement after a day's pause. The Nifty is trading at the 200 DMA which is consistently falling.
3) The stochastics have returned to the overbought zone and are now pointing upwards.
4) In the above chart, the volumes have increased in yesterday's up-move, confirming the strength of this bull run. However, the MACD is at its peak, while the MACD histogram is showing a negative divergence. The ADX is also showing that the Bull run is weakening.
5) Considering the above, our trading plan for the day is as under.
a) Around 5180, we will open fresh long positions with a SL of 5150 and a target of 5260. We will add to these long positions only above 5290.
b) Around 5270, we will open fresh short positions with a SL of 5285 and a target of 5190. We will add to these short positions only below 5145.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
A volatile session lies ahead as the Bears try to take control.As discussed yesterday, the Hanging Man formation proved to be a cog in the wheel for the Bullish runaway rally witnessed over the past 20 sessions. The Nifty opened in the negative and closed near the day's low, losing 117 points at the end of the session. Today, the volatility is likely to increase as the Bears are not expected to meekly surrender from here.1) The Elder Ray readings : Bull Power reduces from +208 to +146 Bear Power increases from +154 to +57, indicating that the Bears have gained in strength, and that they are within striking distance from their safety zone. A intraday level below 5020 would bring the Bears into their own territory. Bulls will have to stretch the Nifty to 5160 which would help them to maintain their current strength levels.2) The Nifty is trading above its key EMAs which have started now to flatten out. The Nifty is also above its 50 & 100 DMAs indicating that the Bull run is still intact.3) The fast stochastics have moved out of the overbought zone and are now pointing downwards, indicating that a short term bear run might be about to start.4) In the above chart, the Nifty is seen leaving the upper Bollinger Band, indicating start of a short term bear run. The MACD is seen to be peaking out, confirming the bearish sentiments. The ADX is also indicating the loosening of the up-move and strengthening of the down-move.5) Considering the above, our trading plan for the day is as under.a) Around 5135, we will open fresh short positions with a SL of 5150 and a target of 5050. We will add to these short positions only below 5000.b) Around 5040, we will open fresh long positions with a SL of 5115 and a target of 5095. We will add to these long positions only above 5140.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
A volatile session lies ahead as the Bears try to take control.
As discussed yesterday, the Hanging Man formation proved to be a cog in the wheel for the Bullish runaway rally witnessed over the past 20 sessions. The Nifty opened in the negative and closed near the day's low, losing 117 points at the end of the session. Today, the volatility is likely to increase as the Bears are not expected to meekly surrender from here.
1) The Elder Ray readings : Bull Power reduces from +208 to +146 Bear Power increases from +154 to +57, indicating that the Bears have gained in strength, and that they are within striking distance from their safety zone. A intraday level below 5020 would bring the Bears into their own territory. Bulls will have to stretch the Nifty to 5160 which would help them to maintain their current strength levels.
2) The Nifty is trading above its key EMAs which have started now to flatten out. The Nifty is also above its 50 & 100 DMAs indicating that the Bull run is still intact.
3) The fast stochastics have moved out of the overbought zone and are now pointing downwards, indicating that a short term bear run might be about to start.
4) In the above chart, the Nifty is seen leaving the upper Bollinger Band, indicating start of a short term bear run. The MACD is seen to be peaking out, confirming the bearish sentiments. The ADX is also indicating the loosening of the up-move and strengthening of the down-move.
5) Considering the above, our trading plan for the day is as under.
a) Around 5135, we will open fresh short positions with a SL of 5150 and a target of 5050. We will add to these short positions only below 5000.
b) Around 5040, we will open fresh long positions with a SL of 5115 and a target of 5095. We will add to these long positions only above 5140.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty has formed a Hanging Man in the supply zone. Correction expectedAs discussed on Friday, the Bulls were on the roll and thus they opened the Nifty with a good positive gap and maintained the gains throughout the trading session. However, the 200 DMA at 5210 proved to be a strong resistance and the Nifty formed a Hanging Man formation on the daily charts just below this key level.1) The Elder Ray readings : Bull Power increased from +198 to +208 Bear Power remained stagnant at +154, indicating that the Bulls are still in control and any dips should be used for buying.2) The Nifty is trading above its key EMAs and also above its 50 and 100 DMAs. The 200 DMA now stands at 5207 and sustenance above this level would initiate fresh buying.3) The stochastics are still in the overbought zone and are not showing any signs of coming down.4) In the above chart, the volumes have slightly reduced. The Nifty continues to trade touching the upper Bollinger Band, indicating that caution must be exercised in any fresh buys. The MACD is pointing to a highly overbought market. The ADX continues to favor the current up-trend however, the sustainability of this is questionable now as per the ADX.5) During the past 19 trading sessions, the Bears have failed to close the Nifty below its previous day's low on 18 occasions. 6) The next supports to the Nifty are 5175 and 5105.7) Considering the above, our trading plan for the day is as undera) Above 5155, we will open fresh long positions with a SL of 5125 and a target of 5205. We will add to these long positions above 5235 only.b) Below 5230, we will open fresh short positions with a SL of 5245 and a target of 5175. We will add to these short positions only below 5105. Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty has formed a Hanging Man in the supply zone. Correction expected
As discussed on Friday, the Bulls were on the roll and thus they opened the Nifty with a good positive gap and maintained the gains throughout the trading session. However, the 200 DMA at 5210 proved to be a strong resistance and the Nifty formed a Hanging Man formation on the daily charts just below this key level.
1) The Elder Ray readings : Bull Power increased from +198 to +208 Bear Power remained stagnant at +154, indicating that the Bulls are still in control and any dips should be used for buying.
2) The Nifty is trading above its key EMAs and also above its 50 and 100 DMAs. The 200 DMA now stands at 5207 and sustenance above this level would initiate fresh buying.
3) The stochastics are still in the overbought zone and are not showing any signs of coming down.
4) In the above chart, the volumes have slightly reduced. The Nifty continues to trade touching the upper Bollinger Band, indicating that caution must be exercised in any fresh buys. The MACD is pointing to a highly overbought market. The ADX continues to favor the current up-trend however, the sustainability of this is questionable now as per the ADX.
5) During the past 19 trading sessions, the Bears have failed to close the Nifty below its previous day's low on 18 occasions.
6) The next supports to the Nifty are 5175 and 5105.
7) Considering the above, our trading plan for the day is as under
a) Above 5155, we will open fresh long positions with a SL of 5125 and a target of 5205. We will add to these long positions above 5235 only.
b) Below 5230, we will open fresh short positions with a SL of 5245 and a target of 5175. We will add to these short positions only below 5105.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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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.
