Today's close will determine whether this is a pullback or a bullish reversal.
As discussed yesterday, the Bulls regained their footing and also stamped their authority all over the Nifty yesterday. The Nifty opened with a down gap of 17 points, but never lost even a fraction of a point thereafter, and after a long 3 hour consolidation in a narrow 20 point range, the Nifty broke out in the afternoon, to touch a high of 5878 before closing at 5863. We did not trade yesterday, as the trend was not clear. Today's close will determine whether the Nifty wants to keep on moving higher.
1) The Elder Ray readings : Bull Power rises from +20 to +62 Bear Power also rises from -13 to -15, indicating that still the Bears are retaining their safe zone and cannot be counted out as yet. However, the Bulls are gaining strength. For today, the Bulls need to overcome the levels of 5890 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5795 to maintain their downwards momentum.
2) The Nifty has now closed above all its key EMAs and also its 200DMA and 100DMA. However, it has closed below its 50DMA(5942)
3) The stochastics are still in the neutral zone and are pointing upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that there could be resistances round the corner now. The MACD has given a positive signal, with the histogram too turning positive. The ADX is signalling a rise in momentum for the Bulls. The Parabolic SAR has now turned into a buy signal with a initial SL at 5664.
5) Considering the above, our trading plan for the day is as under.
a) Around 5830, we will open fresh long positions with a SL of 5800 and a target of 5885. We will add to these long positions only above 5925.
b) Around 5900, we will open fresh short positions with a SL of 5925 and a target of 5850. We will add to these short positions only below 5800.
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 Bulls regained their footing and also stamped their authority all over the Nifty yesterday. The Nifty opened with a down gap of 17 points, but never lost even a fraction of a point thereafter, and after a long 3 hour consolidation in a narrow 20 point range, the Nifty broke out in the afternoon, to touch a high of 5878 before closing at 5863. We did not trade yesterday, as the trend was not clear. Today's close will determine whether the Nifty wants to keep on moving higher.
1) The Elder Ray readings : Bull Power rises from +20 to +62 Bear Power also rises from -13 to -15, indicating that still the Bears are retaining their safe zone and cannot be counted out as yet. However, the Bulls are gaining strength. For today, the Bulls need to overcome the levels of 5890 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5795 to maintain their downwards momentum.
2) The Nifty has now closed above all its key EMAs and also its 200DMA and 100DMA. However, it has closed below its 50DMA(5942)
3) The stochastics are still in the neutral zone and are pointing upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that there could be resistances round the corner now. The MACD has given a positive signal, with the histogram too turning positive. The ADX is signalling a rise in momentum for the Bulls. The Parabolic SAR has now turned into a buy signal with a initial SL at 5664.
5) Considering the above, our trading plan for the day is as under.
a) Around 5830, we will open fresh long positions with a SL of 5800 and a target of 5885. We will add to these long positions only above 5925.
b) Around 5900, we will open fresh short positions with a SL of 5925 and a target of 5850. We will add to these short positions only below 5800.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened short position at 5905 with a SL of 5925 and a target of 5850 as per trading plan (b)
ReplyDeleteSL hit at 5925.
ReplyDeleteBooked 20 points loss.
Not taking long positions as per part(b) of trading plan (a) as it seems Nifty is too stretched as of this moment but not ready to fall down as yet.
If 5900/05 comes again, new short is advisable?
ReplyDeleteJust to understand the system, i am asking...
The system sets out a trading plan in the morning before the start of the markets.
DeleteThe trading plans are certainly not carved in stone, and are a little flexible.
We also attempt at reviewing our plans and taking fresh views during the market hours.
Although most of the times, our morning views prevail over the day.
Attempting short at 5930 with a SL of 5945 as Nifty gets into overbought zone on the 15 min chart.
ReplyDelete5945 is the 50DMA which should act as resistance.
ReplyDeleteIf cleared then Nifty can go up further 100 points.
Stopped out again with a 15 point loss.
ReplyDeleteThat's it for the day.
35 points loss booked.