At the start of the new year, Nifty poised for a breakout. Watch out for newer highs.
As discussed yesterday, we expected the Nifty to end the year on a high note. However, the Nifty spent the day, preparing for the breakout which might come in starting today onwards. The Nifty opened with a small gap down of 7 points, spent the entire trading session within a narrow range of 23 points before closing for the day with a small loss of about 2 points. None of our trading plans got triggered, and we were happy to spend the day sitting on the side lines.
1) The Elder Ray readings : Bull Power reduces from +38 to +37 Bear Power also reduces from +1 to +15 indicating that the Bears are now going farther from their safe zone, and need to act soon. For today, the Bulls need to overcome the levels of 5925 to maintain their upwards momentum whereas the Bears need to breach the levels of 5885 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are in the neutral zone and are now pointing upwards.
4) In the above chart, the volumes have been low while the Nifty has been stagnant indicating anxiety and lack of participation amongst the trading community. The MACD has flattened out now and has stopped falling further. The ADX is indicating a bottoming out of the momentum and is favoring the Bulls. The Parabolic SAR continues with its sell signal with a SL of 5926.
5) Considering the above, our trading plan for the day is as under.
a) Around 5880 we will open fresh long positions with a SL of 5860 and a target of 5935. We will add to these long positions only above 5950.
b) Around 5935 we will open fresh short positions with a SL of 5950 and a target of 5895. We will add to these short positions only below 5860.
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, we expected the Nifty to end the year on a high note. However, the Nifty spent the day, preparing for the breakout which might come in starting today onwards. The Nifty opened with a small gap down of 7 points, spent the entire trading session within a narrow range of 23 points before closing for the day with a small loss of about 2 points. None of our trading plans got triggered, and we were happy to spend the day sitting on the side lines.
1) The Elder Ray readings : Bull Power reduces from +38 to +37 Bear Power also reduces from +1 to +15 indicating that the Bears are now going farther from their safe zone, and need to act soon. For today, the Bulls need to overcome the levels of 5925 to maintain their upwards momentum whereas the Bears need to breach the levels of 5885 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are in the neutral zone and are now pointing upwards.
4) In the above chart, the volumes have been low while the Nifty has been stagnant indicating anxiety and lack of participation amongst the trading community. The MACD has flattened out now and has stopped falling further. The ADX is indicating a bottoming out of the momentum and is favoring the Bulls. The Parabolic SAR continues with its sell signal with a SL of 5926.
5) Considering the above, our trading plan for the day is as under.
a) Around 5880 we will open fresh long positions with a SL of 5860 and a target of 5935. We will add to these long positions only above 5950.
b) Around 5935 we will open fresh short positions with a SL of 5950 and a target of 5895. We will add to these short positions only below 5860.
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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