Nifty is back to bullish undertones, but minor roadblocks ahead need to be jumped.
On Friday, we had expected a volatile end of week, and the Nifty after a minor positive gap up opening, traded in a very confined range for most of the trading session with violent ups and downs, before, late in the afternoon, the Bulls took charge and strode the Nifty above 6065 to levels of 6081 before closing at 6075. Our trading plan (a) got triggered and met the SL and we booked out with a small loss of 10 points. We are carrying forward long positions with a very short time perspective.
1) The Elder Ray readings : Bull Power rises from +43 to +51 Bear Power also rises from -14 to -15 indicating that the Nifty is still in the equilibrium and that the Bulls have some more work to do. For today, the Bulls need to overcome the levels of 6085 to maintain their upwards momentum whereas the Bears need to breach the levels of 6015 to retain their downwards momentum.
2) The Nifty has yet again now closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are just below the overbought zone and are pointing upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that there may be roadblocks ahead in its upward path. The MACD continues to point horizontal without any directional bias. The ADX is suggesting a overall loss of momentum but a rise in the upwards momentum. The Parabolic SAR continues with its sell signal with a SL now at 6099.
5) Considering the above, our trading plan for the day is as under.
a) Around 6110 we will open fresh short positions with a SL of 6125 and a target of 6060. We will add to these short positions only below 6025.
b) Around 6040 we will open fresh long positions with a SL of 6025 and a target of 6095. We will add to these long positions only above 6125.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, we had expected a volatile end of week, and the Nifty after a minor positive gap up opening, traded in a very confined range for most of the trading session with violent ups and downs, before, late in the afternoon, the Bulls took charge and strode the Nifty above 6065 to levels of 6081 before closing at 6075. Our trading plan (a) got triggered and met the SL and we booked out with a small loss of 10 points. We are carrying forward long positions with a very short time perspective.
1) The Elder Ray readings : Bull Power rises from +43 to +51 Bear Power also rises from -14 to -15 indicating that the Nifty is still in the equilibrium and that the Bulls have some more work to do. For today, the Bulls need to overcome the levels of 6085 to maintain their upwards momentum whereas the Bears need to breach the levels of 6015 to retain their downwards momentum.
2) The Nifty has yet again now closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are just below the overbought zone and are pointing upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that there may be roadblocks ahead in its upward path. The MACD continues to point horizontal without any directional bias. The ADX is suggesting a overall loss of momentum but a rise in the upwards momentum. The Parabolic SAR continues with its sell signal with a SL now at 6099.
5) Considering the above, our trading plan for the day is as under.
a) Around 6110 we will open fresh short positions with a SL of 6125 and a target of 6060. We will add to these short positions only below 6025.
b) Around 6040 we will open fresh long positions with a SL of 6025 and a target of 6095. We will add to these long positions only above 6125.
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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