Nifty continues to dip and get bought into, as Bulls maintain their control.
As discussed yesterday, the short-lived correction ended in the afternoon trade yesterday itself. The Nifty opened with a minor negative down gap of 5 points and then drifted down to 5964 where it found support and in the late afternoon swing took off the day's highs to reach 6007 before closing at 6002. None of our trading plans got triggered, though the Nifty reached within handshaking distance of both the trading plans. We thought it better to sit out the consolidation phase.
1) The Elder Ray readings : Bull Power reduces from +100 to +56 Bear Power rises from +35 to + 14 indicating that the Bears are now within striking distance of their safe zone and that the Bulls need to do much work now. For today, the Bulls need to overcome the levels of 6015 to maintain their upwards momentum where as the Bears need to breach the levels of 5960 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating bullish sentiments ahead. The MACD continues to be positive. The ADX is suggesting a loss of momentum for the up move but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with a SL at 5879 now.
5) Considering the above, our trading plan for the day is as under.
a) Around 5975 we will open fresh long positions with a SL of 5960 and a target of 6025. We will add to these long positions only above 6045.
b) Around 6030 we will open fresh short positions with a SL of 6045 and a target of 5995. We will add to these short positions only below 5960.
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, the short-lived correction ended in the afternoon trade yesterday itself. The Nifty opened with a minor negative down gap of 5 points and then drifted down to 5964 where it found support and in the late afternoon swing took off the day's highs to reach 6007 before closing at 6002. None of our trading plans got triggered, though the Nifty reached within handshaking distance of both the trading plans. We thought it better to sit out the consolidation phase.
1) The Elder Ray readings : Bull Power reduces from +100 to +56 Bear Power rises from +35 to + 14 indicating that the Bears are now within striking distance of their safe zone and that the Bulls need to do much work now. For today, the Bulls need to overcome the levels of 6015 to maintain their upwards momentum where as the Bears need to breach the levels of 5960 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating bullish sentiments ahead. The MACD continues to be positive. The ADX is suggesting a loss of momentum for the up move but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with a SL at 5879 now.
5) Considering the above, our trading plan for the day is as under.
a) Around 5975 we will open fresh long positions with a SL of 5960 and a target of 6025. We will add to these long positions only above 6045.
b) Around 6030 we will open fresh short positions with a SL of 6045 and a target of 5995. We will add to these short positions only below 5960.
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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