Nifty needs to jump over the next roadblock, else the up move may be restricted.As discussed yesterday, the Nifty continued to hang out on the top end, even after opening with a minor gap down, but eventually making yet another higher high and higher low, thereby demonstrating the grip of the bulls on the Nifty. Having said that, we would continue to be cautious at these higher levels, until the Nifty is able to jump over the next hump, before marching onto higher peaks.1) The Elder Ray readings : Bull Power reduces from +127 to +123 Bear Power increases from +83 to +79, indicating that the Bulls are not ready to give up their grip, even as the Bears are slowly trying to inch back into the game. For today, the Bulls need to overcome the levels of 5355 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5230 to regain their safety zone.2) The Nifty continues to close above all its key EMAs and all its key DMAs.3) The stochastics continue to remain well and deep into the overbought zone. 4) In the above chart, the volumes have reduced, with the small rise in the Nifty, again indicating slight exhaustion at the top. The MACD continues to rise, indicating strength of the Bulls. The ADX is suggesting some exhaustion of the up move, however, the down move is at its ebb, now. The Parabolic SAR continues to hold out a buy signal with a turnaround point at 5240.5) Considering the above, our trading plan for the day is as under.a) Around 5355, we will open fresh short positions with a SL of 5375 and a target of 5290. We will add to these short positions only below 5265.
b) Around 5285, we will open fresh long positions with a SL of 5265 and a target of 5350. We will add to these long positions only above 5375.
Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty needs to jump over the next roadblock, else the up move may be restricted.
As discussed yesterday, the Nifty continued to hang out on the top end, even after opening with a minor gap down, but eventually making yet another higher high and higher low, thereby demonstrating the grip of the bulls on the Nifty. Having said that, we would continue to be cautious at these higher levels, until the Nifty is able to jump over the next hump, before marching onto higher peaks.
1) The Elder Ray readings : Bull Power reduces from +127 to +123 Bear Power increases from +83 to +79, indicating that the Bulls are not ready to give up their grip, even as the Bears are slowly trying to inch back into the game. For today, the Bulls need to overcome the levels of 5355 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5230 to regain their safety zone.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deep into the overbought zone.
Nifty keeps its bullish stance, as trading range contracts. Smells of a correction.As discussed yesterday, "Correction looms in?", it turned out to be a wisely put question mark, which may carry forward to today, maybe tomorrow too. For three consecutive trading sessions now, the Nifty has managed to open with a mild gap up, made higher lows and closed below the opening mark, giving out 3 consecutive DOJIs. This is indicative of the upwards but indecisive bias on the Nifty, which makes a further breakout or breakdown imminent now.1) The Elder Ray readings : Bull Power reduces from +145 to +127 Bear Power rises from +94 to +83 , indicating that the Bulls are still strong, but the Bears are not allowing them to run away too far. For today, the Bulls need to overcome the levels of 5345 to maintain their upwards momentum, whereas the Bears need to breach 5210 to return to their safe zone.2) The Nifty continues to close above all its key EMAs and its Key DMAs. As per these EMAs and DMAs current positions, a correction till 5140 could be swiftly bought out in such a strong market, without disturbing the up trend.3) The stochastics continue to remain deeply in the overbought zone and are pointing horizontal now.4) In the above chart, the volumes keep on increasing mildly with the Nifty inching up, indicating the strength of the uptrend. The MACD is also inching up. The ADX is suggesting some weakening of the uptrend, and the downtrend is at its weakest now. The Parabolic SAR continues to hold out its buy signal with a turnaround point at 5217.5) Considering the above, our trading plan for the day is as under.a) Around 5330, we will open fresh short positions with a SL of 5360 and a target of 5265. We will add to these short positions only below 5245.b) Around 5265, we will open fresh long positions with a SL of 5245 and a target of 5310. We will add to these long positions only above 5360.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty keeps its bullish stance, as trading range contracts. Smells of a correction.
As discussed yesterday, "Correction looms in?", it turned out to be a wisely put question mark, which may carry forward to today, maybe tomorrow too. For three consecutive trading sessions now, the Nifty has managed to open with a mild gap up, made higher lows and closed below the opening mark, giving out 3 consecutive DOJIs. This is indicative of the upwards but indecisive bias on the Nifty, which makes a further breakout or breakdown imminent now.
1) The Elder Ray readings : Bull Power reduces from +145 to +127 Bear Power rises from +94 to +83 , indicating that the Bulls are still strong, but the Bears are not allowing them to run away too far. For today, the Bulls need to overcome the levels of 5345 to maintain their upwards momentum, whereas the Bears need to breach 5210 to return to their safe zone.
2) The Nifty continues to close above all its key EMAs and its Key DMAs. As per these EMAs and DMAs current positions, a correction till 5140 could be swiftly bought out in such a strong market, without disturbing the up trend.
3) The stochastics continue to remain deeply in the overbought zone and are pointing horizontal now.
As the Nifty stalls in its progress, a correction is looming in, and may be bought into.As discussed yesterday, "the Nifty continued to rise" albeit in a narrow range, closing with a minor gain of less than 10 points. It is significant that the Bears could not breach the Nifty below previous day's low of 5263, which indicates of the up move being even more stronger. During last two trading sessions, none of our trading plans got triggered, and we were happy sitting on the sidelines, watching Nifty grind in a narrow range.1) The Elder Ray readings : Bull Power reduces from +149 to +145 Bear Power rises from +111 to +94 indicating that the Bulls remain the stronger force in the market as of now. For today, the Bulls need to overcome the levels of 5340 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the levels of 5190 on the Nifty to regain all their lost grounds. This makes the chances of a imminent correction, bright.2) The Nifty continues to close above all its key EMAs and above all its key DMAs. The 100 DMA at 5190 is the nearest DMA support line.3) The stochastics continue to remain in the overbought zone and are pointing sideways. 4) In the above chart, the volumes have increased slightly with a slight rise in the Nifty, indicating exhaustion at higher levels. The MACD continues to rise, indicating the strength of the up move. The ADX is suggesting slight exhaustion of the up move, but is also suggesting further weakening of the down move, which amounts to volatility. 5) Considering the above, our trading plan for the day is as under.a) Around 5260, we will open fresh long positions with a SL of 5240 and a target of 5330. We will add to these long positions only above 5350.
b) Around 5335, we will open fresh short positions with a SL of 5350 and a target of 5250. We will add to these short positions only below 5235.
Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
As the Nifty stalls in its progress, a correction is looming in, and may be bought into.
As discussed yesterday, "the Nifty continued to rise" albeit in a narrow range, closing with a minor gain of less than 10 points. It is significant that the Bears could not breach the Nifty below previous day's low of 5263, which indicates of the up move being even more stronger. During last two trading sessions, none of our trading plans got triggered, and we were happy sitting on the sidelines, watching Nifty grind in a narrow range.
1) The Elder Ray readings : Bull Power reduces from +149 to +145 Bear Power rises from +111 to +94 indicating that the Bulls remain the stronger force in the market as of now. For today, the Bulls need to overcome the levels of 5340 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the levels of 5190 on the Nifty to regain all their lost grounds. This makes the chances of a imminent correction, bright.
2) The Nifty continues to close above all its key EMAs and above all its key DMAs. The 100 DMA at 5190 is the nearest DMA support line.
3) The stochastics continue to remain in the overbought zone and are pointing sideways.
After a brief pause, the up move on the Nifty is likely to continue.As discussed yesterday, the Nifty continued to rise, with the Nifty opening with minor gains, then overcoming the 5300 levels, before closing just flat. As a result, we got a Doji in the daily chart. During recent past, Doji has been a indicator of continuation, and this one could as well be so.1) The Elder Ray readings : Bull Power reduces from +155 to +149 Bear Power also reduces from +57 to +111, indicating of the consolidation phase that underwent yesterday. For today, the Bulls need to overcome levels of 5325 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5170 to regain their lost grounds.2) The Nifty continues to close above all its key EMAs and all its key DMAs.3) The stochastics continue to remain well and deeply into the overbought zone. 4) In the above chart, the volumes have decreased with the Nifty being stagnant, indicating a phase of consolidation at higher levels. The MACD continues to rise, confirming the uptrend. The ADX is suggesting strengthening of the momentum to the uptrend. The Parabolic SAR continues to hold out its Buy signal.5) Considering the above, our trading plan for the day is as under.a) Above 5255, we will open fresh long positions with a SL of 5220 and a target of 5310. We will add to these long positions only above 5340.b) Around 5325, we will open fresh short positions with a SL of 5340 and a target of 5280. We will add to these short positions only below 5220.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
After a brief pause, the up move on the Nifty is likely to continue.
As discussed yesterday, the Nifty continued to rise, with the Nifty opening with minor gains, then overcoming the 5300 levels, before closing just flat. As a result, we got a Doji in the daily chart. During recent past, Doji has been a indicator of continuation, and this one could as well be so.
1) The Elder Ray readings : Bull Power reduces from +155 to +149 Bear Power also reduces from +57 to +111, indicating of the consolidation phase that underwent yesterday. For today, the Bulls need to overcome levels of 5325 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5170 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deeply into the overbought zone.
With the Nifty breaking out above the resistance band, 5330 is the next target.As discussed on Friday, it turned out to be a "Trend setting day" with the Nifty opening right above its near term resistance zone, and then never looking back at all. The Nifty eventually closed with a gain of 130 points and near its top end. Friday was a clear example of a bullish day as defined in "identifying market trends" as "A Bullish trend is identified by the ability of the Bulls to overcome Day Highs, consistently, without causing much harm to the Day lows." Also to be noted is that the hitherto resistance point of 5195 has now become a point of support.1) The Elder Ray readings : Bull Power rises from +52 to +155 Bear Power reduces from +18 to +57 indicating that the Bears are now left gasping for breath as the Bulls have run away with the Nifty. For today, the Bulls need to overcome the level of 5305 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5145 to regain their territory.2) The Nifty has now closed above all its key EMAs and its key DMAs.3) The stochastics are well and truly deep into the overbought zone. 4) In the above chart, the volumes have increased with the rise in the Nifty indicating the sustainability of this up move. The MACD has also risen in accordance. The ADX is suggesting a gain of momentum to the up move. The Parabolic SAR is also holding out on its Buy signal.5) Considering the above, our trading plan for the day is as under.a) Above 5245, we will open fresh long positions with a SL of 5215 and a target of 5330. We will add to these long positions only above 5345.b) Around 5335, we will open fresh short positions with a SL of 5345 and a target of 5255. We will add to these short positions only below 5215.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty breaking out above the resistance band, 5330 is the next target.
As discussed on Friday, it turned out to be a "Trend setting day" with the Nifty opening right above its near term resistance zone, and then never looking back at all. The Nifty eventually closed with a gain of 130 points and near its top end. Friday was a clear example of a bullish day as defined in "identifying market trends" as "A Bullish trend
is identified by the ability of the Bulls to overcome Day Highs,
consistently, without causing much harm to the Day lows.
" Also to be noted is that the hitherto resistance point of 5195 has now become a point of support.
1) The Elder Ray readings : Bull Power rises from +52 to +155 Bear Power reduces from +18 to +57 indicating that the Bears are now left gasping for breath as the Bulls have run away with the Nifty. For today, the Bulls need to overcome the level of 5305 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5145 to regain their territory.
2) The Nifty has now closed above all its key EMAs and its key DMAs.
3) The stochastics are well and truly deep into the overbought zone.
|
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.
