On a low volume day, Bulls stage a smart comeback. But need to do more now.
As discussed yesterday, Bearish outlook remained on the Nifty for most of the trading session. The Nifty opened flat and traded within a confined range of 20 points for most part of the trading session with a negative bias. However, in the last hour of trade, the Bulls staged a smart rally and took the Nifty swiftly past its resistance levels, to make a high of 5948 before closing at 5940 with a whopping gain of 42 points. Our trading plan (a) triggered. However, we jumped the gun too soon, and booked a loss of 48 points.
1) The Elder Ray readings : Bull Power rises from -25 to +11 Bear Power reduces from -58 to -54 indicating that though the Bulls have recovered a lot, they still need to do more today. For today, the Bulls need to overcome the levels of 5955 to retain their upwards momentum whereas the Bears need to breach the Nifty below 5875 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA and 13EMA. However, it has closed below its 21EMA(5952) and 200DMA(5961) which could be near term resistance.
3) The stochastics are just out of the oversold zone and are now pointing upwards.
4) In the above chart, the volumes have remained low with the rise in the Nifty indicating that the rise needs to be confirmed yet. The MACD is in the negative, but is seen rising, though it has not triggered a reversal yet. The ADX is suggesting equilibrium between the Bulls and the Bears. The Parabolic SAR continues with its sell signal with a SL of 5948.
5) Considering the above, our trading plan for the day is as under.
a) Around 5920 we will open fresh long positions with a SL of 5900 and a target of 5965. We will add to these long positions only above 5980.
b) Around 5970 we will open fresh short positions with a SL of 5980 and a target of 5925. We will add to these short positions only below 5900.
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, Bearish outlook remained on the Nifty for most of the trading session. The Nifty opened flat and traded within a confined range of 20 points for most part of the trading session with a negative bias. However, in the last hour of trade, the Bulls staged a smart rally and took the Nifty swiftly past its resistance levels, to make a high of 5948 before closing at 5940 with a whopping gain of 42 points. Our trading plan (a) triggered. However, we jumped the gun too soon, and booked a loss of 48 points.
1) The Elder Ray readings : Bull Power rises from -25 to +11 Bear Power reduces from -58 to -54 indicating that though the Bulls have recovered a lot, they still need to do more today. For today, the Bulls need to overcome the levels of 5955 to retain their upwards momentum whereas the Bears need to breach the Nifty below 5875 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA and 13EMA. However, it has closed below its 21EMA(5952) and 200DMA(5961) which could be near term resistance.
3) The stochastics are just out of the oversold zone and are now pointing upwards.
4) In the above chart, the volumes have remained low with the rise in the Nifty indicating that the rise needs to be confirmed yet. The MACD is in the negative, but is seen rising, though it has not triggered a reversal yet. The ADX is suggesting equilibrium between the Bulls and the Bears. The Parabolic SAR continues with its sell signal with a SL of 5948.
5) Considering the above, our trading plan for the day is as under.
a) Around 5920 we will open fresh long positions with a SL of 5900 and a target of 5965. We will add to these long positions only above 5980.
b) Around 5970 we will open fresh short positions with a SL of 5980 and a target of 5925. We will add to these short positions only below 5900.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Have opened short position at 5965 as per trading plan(b) with SL of 5980 and target of 5925.
ReplyDeleteSquared off long positions at 5940.
ReplyDeleteProfit booked 25 points in two lots. Total 50 points.