Nifty holds key support levels for now. Bulls must show some follow up action.
As discussed yesterday, the Nifty was approaching key support levels. The Nifty opened with a mild positive gap at 6053, made a high of 6070 and dipped down to test the key support levels of 6020, held the supports and closed well above them at 6054. Our trading plan(a) got triggered and we were able to book a profit of 45 points on two lots traded yesterday.
1) The Elder Ray readings : Bull Power reduces from +84 to +47 Bear Power rises from +23 to -1 indicating that if the Bulls do not act now, then the Bears, who have regained their lost ground can play havoc. For today, the Bulls need to overcome the levels of 6075 to retain their upwards momentum whereas the Bears need to breach the Nifty below 6020 to maintain their downwards momentum.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The Stochastics are just below the overbought zone now.
4) In the above chart, the volumes have increased slightly with the small rise in the Nifty indicating that the rise may continue for a while. The MACD continues to point horizontal maintaining its positive bias. The ADX is also showing a loss in momentum for the Bulls but is still favoring the up move. The Parabolic SAR continues with its buy signal with a SL of 6021.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030 we will open fresh long positions with a SL of 6005 and a target of 6080. We will add to these long positions only above 6100.
b) Around 6085 we will open fresh short positions with a SL of 6110 and a target of 6050. We will add to these short positions only below 6005.
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 Nifty was approaching key support levels. The Nifty opened with a mild positive gap at 6053, made a high of 6070 and dipped down to test the key support levels of 6020, held the supports and closed well above them at 6054. Our trading plan(a) got triggered and we were able to book a profit of 45 points on two lots traded yesterday.
1) The Elder Ray readings : Bull Power reduces from +84 to +47 Bear Power rises from +23 to -1 indicating that if the Bulls do not act now, then the Bears, who have regained their lost ground can play havoc. For today, the Bulls need to overcome the levels of 6075 to retain their upwards momentum whereas the Bears need to breach the Nifty below 6020 to maintain their downwards momentum.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The Stochastics are just below the overbought zone now.
4) In the above chart, the volumes have increased slightly with the small rise in the Nifty indicating that the rise may continue for a while. The MACD continues to point horizontal maintaining its positive bias. The ADX is also showing a loss in momentum for the Bulls but is still favoring the up move. The Parabolic SAR continues with its buy signal with a SL of 6021.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030 we will open fresh long positions with a SL of 6005 and a target of 6080. We will add to these long positions only above 6100.
b) Around 6085 we will open fresh short positions with a SL of 6110 and a target of 6050. We will add to these short positions only below 6005.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened long position at 6025 with a SL of 6005 and a target of 6080 as per trading plan (a) which has got triggered now.
ReplyDeleteAdded one more lot at 6010 and holding with a SL of 6005
ReplyDeleteSquared off long positions @ 6045 now.
ReplyDeleteProfit booked.
First lot 20 points.
Second lot 35 points.
Total 45 points
Hi,
ReplyDeleteCould you pl. explain the TA basis on which the position was squared off. Kindly let me know your email/gtalk id.
Thanks.
Hi Stockathon,
DeleteThe position was squared off looking at a few things at that point of time.
1) The Nifty was hitting the upper Bollingers on the 15 min chart and was not able to sustain there.
2) The adv dec remained in favor of the declines.
3) The Nifty was very close to the day pivot and was not able to cross it.
4) Out of the normal trading range of about 60 points we had already booked 35 points.
So that was a good time to book profits and stay aside.
Hi,
DeleteThank you for your detailed explanation it will help me in taking a decision while holding/exiting a trade.
Also kindly add me to your gtalk/yahoo id.
Thanks!