On the eve of the RBI meet, Bulls are cautious, but still hold the keys to the Nifty.
As discussed yesterday, the Bullish bias returned to the bourses. The Nifty opened with a mild positive gap up, then crossed the previous day's high only to grind in a 30 point range for the entire day, maintaining the bullish undertones and closing flat. None of our trading plans got triggered and we sat on the sidelines waiting for the next move, which we feel will be on the upside.
1) The Elder Ray readings : Bull Power rises from +51 to +52 Bear Power reduces from -15 to +25 indicating that on a crucial day, the Bears are out of their safe zone. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach 6040 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 are below the overbought zone and are pointing upwards.
4) In the above chart, the volumes have fallen with the Nifty remaining stagnant, indicating the caution taken up by traders just before a event day. The MACD continues to point horizontal. The ADX is showing a rise in momentum for the bulls. The Parabolic SAR continues with its sell signal with a SL of 6098.
5) Considering the above, our trading plan for the day is as under.
a) Around 6055 we will open fresh long positions with a SL of 6030 and a target of 6095. We will add to these long positions only above 6120.
b) Around 6105 we will open fresh short positions with a SL of 6120 and a target of 6070. We will add to these short positions only below 6030.
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 Bullish bias returned to the bourses. The Nifty opened with a mild positive gap up, then crossed the previous day's high only to grind in a 30 point range for the entire day, maintaining the bullish undertones and closing flat. None of our trading plans got triggered and we sat on the sidelines waiting for the next move, which we feel will be on the upside.
1) The Elder Ray readings : Bull Power rises from +51 to +52 Bear Power reduces from -15 to +25 indicating that on a crucial day, the Bears are out of their safe zone. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach 6040 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 are below the overbought zone and are pointing upwards.
4) In the above chart, the volumes have fallen with the Nifty remaining stagnant, indicating the caution taken up by traders just before a event day. The MACD continues to point horizontal. The ADX is showing a rise in momentum for the bulls. The Parabolic SAR continues with its sell signal with a SL of 6098.
5) Considering the above, our trading plan for the day is as under.
a) Around 6055 we will open fresh long positions with a SL of 6030 and a target of 6095. We will add to these long positions only above 6120.
b) Around 6105 we will open fresh short positions with a SL of 6120 and a target of 6070. We will add to these short positions only below 6030.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Plan (b) triggered. So we squared off our long positions carried forward since Friday evening booking a profit of 13 * 2 lots = 26 points.
ReplyDeleteTrading plan(a) triggered now. Opening fresh long positions with a SL of 6030
ReplyDeleteWinding up intraday longs with a small loss of 3 points.
ReplyDeleteTotal for today +23 points.
Got a big lesson today.
ReplyDeleteWhen trading plan(b) triggered, we just squared off our outstanding long positions and did not really initiate fresh short positions which we should have done.
No point in repenting now, but leaves us getting even more confident on our trading plans than ever before.