AD Code

Friday 17 August 2012

Nifty - 17 Aug 2012 - Nifty pauses

Nifty pauses mysteriously in its upward momentum. Trend reversal may come.

Yesterday, we expected the "Bullish Trend to continue" and had also expected some short covering at higher levels. However, the Nifty saw profit booking and a eventual close below the developing day pivot. None of our trading plans got triggered as the Nifty trading range contracted yet again.

1) The Elder Ray readings : Bull Power reduces from +97 to +92 Bear Power also reduces from +39 to +57, giving initial indications of caution for the up move. For today, the Bulls need to overcome the levels of 5400 in order to maintain their upwards momentum, wheras the Bears need to breach the Nifty below 5300 to regain their lost grounds.

2) The Nifty has yet again closed above all its key EMAs and all its key DMAs.

3) The stochastics are still in the overbought zone.

 


4) In the above chart, the volumes have increased with the Nifty falling, indicating weakness at higher levels. The MACD and the ADX both are showing weakening of the up move. The Parabolic SAR is continuing its Buy signal with a SL of 5253.

5) Considering the above, our trading plan for the day is as under.

a) Below 5385, we will open fresh short positions with a SL of 5415 and a target of 5330. We will add to these short positions only below 5315.

b) Around 5325, we will open fresh long positions with a SL of 5315 and a target of 5365. We will add to these long positions only above 5415.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 17 Aug 2012 - Nifty pauses

Nifty pauses mysteriously in its upward momentum. Trend reversal may come.

Yesterday, we expected the "Bullish Trend to continue" and had also expected some short covering at higher levels. However, the Nifty saw profit booking and a eventual close below the developing day pivot. None of our trading plans got triggered as the Nifty trading range contracted yet again.

1) The Elder Ray readings : Bull Power reduces from +97 to +92 Bear Power also reduces from +39 to +57, giving initial indications of caution for the up move. For today, the Bulls need to overcome the levels of 5400 in order to maintain their upwards momentum, wheras the Bears need to breach the Nifty below 5300 to regain their lost grounds.

2) The Nifty has yet again closed above all its key EMAs and all its key DMAs.

3) The stochastics are still in the overbought zone.

Thursday 16 August 2012

Nifty - 16 Aug 2012 - Bullish trend continues

Nifty may continue its bullish march if 5350 holds. Short covering expected.

As discussed in our last post, the Nifty approached the top end of its trading channel with the Bulls taking charge, and now seems to be ready to cross higher peaks. Our trading plan (a) got triggered during the last trading session and also met its target. Also our trading plan (b) got triggered later and yielded a minor profit. 

1) The Elder Ray readings : Bull Power rises from +78 to +97 Bear Power reduces from +35 to +39, indicating the strong grip of the Bulls over the Nifty. For today, the Bulls need to overcome the levels of  5405 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5300 to regain their lost grounds.

2) The Nifty continues to close above all its key EMAs and all its key DMAs, indicating the strength of this up move.

3) The stochastics are well and deeply into the overbought zone, and some profit booking at higher levels should be expected now.

 


4) In the above chart, the volumes have increased with the rise in the Nifty indicating sustainability of this up move. The MACD continues to rise, and so does the ADX. The Parabolic SAR continues with its buy signal with a SL now pegged at 5231.

5) Considering the above, our trading plan for the day is as under.

a) Around 5350, we will open fresh long positions with a SL of 5325 and a target of 5415. We will add to these long positions only above 5435.

b) Around 5420, we will open fresh short positions with a SL of 5435 and a target of 5365. We will add to these short positions only below 5325.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 16 Aug 2012 - Bullish trend continues

Nifty may continue its bullish march if 5350 holds. Short covering expected.

As discussed in our last post, the Nifty approached the top end of its trading channel with the Bulls taking charge, and now seems to be ready to cross higher peaks. Our trading plan (a) got triggered during the last trading session and also met its target. Also our trading plan (b) got triggered later and yielded a minor profit. 

1) The Elder Ray readings : Bull Power rises from +78 to +97 Bear Power reduces from +35 to +39, indicating the strong grip of the Bulls over the Nifty. For today, the Bulls need to overcome the levels of  5405 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5300 to regain their lost grounds.

2) The Nifty continues to close above all its key EMAs and all its key DMAs, indicating the strength of this up move.

3) The stochastics are well and deeply into the overbought zone, and some profit booking at higher levels should be expected now.

Tuesday 14 August 2012

Nifty - 14 Aug 2012 - Approaching top end

As the Nifty approaches 5380, technicals indicate weakening of the up move.

As discussed yesterday, we saw the Nifty "still consolidating" throughout the trading session within a confined range of 45 points. However, the close was near the high of the day, indicating strengthening of the Bulls. Consolidations are difficult to trade, and hence, we were happy to see them through sitting on the sidelines, as none of our trading plans get triggered during these contraction phases.

1) The Elder Ray readings : Bull Power rises from +68 to +78 Bear Power reduces from +32 to +35, indicating the grip of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 5365 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5280 to regain their lost grounds.

2) The Nifty continues to close well above all its key EMAs and all its key DMAs.

3) The stochastics continue to remain in the overbought zone, indicating the strength of the bullish momentum.




4) In the above chart, the volumes have decreased with the rise in the Nifty towards the top end, indicating that the momentum might weaken at the top. The MACD has continued its rise, indicating that the bullish up move might sustain. The ADX is also favoring the Bulls but is suggesting further weakening of the trend. The Parabolic SAR continues with its buy signal with a SL now pegged at 5209.

5) Considering the above, our trading plan for the day is as under

a) Around 5325, we will open fresh long positions with a SL of 5295 and a target of 5375. We will add to these long positions only above 5400.

b) Around 5385, we will open fresh short positions with a SL of 5400 and a target of 5335. We will add to these short positions only below 5295.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 14 Aug 2012 - Approaching top end

As the Nifty approaches 5380, technicals indicate weakening of the up move.

As discussed yesterday, we saw the Nifty "still consolidating" throughout the trading session within a confined range of 45 points. However, the close was near the high of the day, indicating strengthening of the Bulls. Consolidations are difficult to trade, and hence, we were happy to see them through sitting on the sidelines, as none of our trading plans get triggered during these contraction phases.

1) The Elder Ray readings : Bull Power rises from +68 to +78 Bear Power reduces from +32 to +35, indicating the grip of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 5365 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5280 to regain their lost grounds.

2) The Nifty continues to close well above all its key EMAs and all its key DMAs.

3) The stochastics continue to remain in the overbought zone, indicating the strength of the bullish momentum.

Monday 13 August 2012

Nifty - 13 Aug 2012 - Still consolidating

The consolidation that began on 07th Aug still continues in the 5270 5370 range.

On 07th Aug 2012, we suggested that there would be "Grinding consolidation ahead", and since then we have seen Nifty grinding between 5377 and 5294 with a close near the day average on all 4 trading sessions since then. We are expecting this consolidation to prolong till the market decides to breakout in either of the directions.

1) The Elder Ray readings: Bull Power reduces from +116 to +68 Bear Power rises from +60 to +32, indicative of the tug of war going on between the Bulls & the Bears, with the Bulls having a advantage here. For today, the Bulls need to take the Nifty above 5340 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5265 to regain their lost grounds.

2) The Nifty has yet again closed above all its key EMAs and all its key DMAs.

3) The stochastics continue to remain in the overbought zone.




4) In the above chart, the volumes have decreased, with the Nifty stagnating, indicating non participation in a indecisive market. The MACD is threatening to make a lower top, which if unfolds, would lead to a major down move. The ADX is suggesting a lowering of momentum for the Bulls and strengthening of momentum for the Bears, with the main trend being neutral. The Parabolic SAR continues with its Buy signal with the SL now at 5186.

5) Considering the above, our trading plan for the day is as under.

a) Around 5285, we will open fresh long positions with a SL of 5265 and a target of 5355. We will add to these long positions only above 5375.

b) Around 5360, we will open fresh short positions with a SL of 5375 and a target of 5300. We will add to these short positions only below 5265.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 13 Aug 2012 - Still consolidating

The consolidation that began on 07th Aug still continues in the 5270 5370 range.

On 07th Aug 2012, we suggested that there would be "Grinding consolidation ahead", and since then we have seen Nifty grinding between 5377 and 5294 with a close near the day average on all 4 trading sessions since then. We are expecting this consolidation to prolong till the market decides to breakout in either of the directions.

1) The Elder Ray readings: Bull Power reduces from +116 to +68 Bear Power rises from +60 to +32, indicative of the tug of war going on between the Bulls & the Bears, with the Bulls having a advantage here. For today, the Bulls need to take the Nifty above 5340 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5265 to regain their lost grounds.

2) The Nifty has yet again closed above all its key EMAs and all its key DMAs.

3) The stochastics continue to remain in 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.