Within a span of 4 sessions, Bulls take charge of the Nifty. Volatile days ahead.
As discussed on Friday, it turned out to be a crucial week end on the Nifty. The Nifty opened with a positive gap of 20 points and not only managed to hold on to that gap, but actually build heavily on that gap to make a high of 5953 before closing at 5946, with a gain of a whopping 82 points. Thus, on the weekly chart, the Nifty has made a bullish engulfing pattern, which is indicating that now the trend is truly in favor of the Bulls. However, a word of caution may not be out of place, that the volatility is on the rise, and the up move on the Nifty now onwards will be punctuated with fairly swift and deep corrections. Our trades on Friday, attempting to go short, were stopped out, and in the process we lost 35 points on that day.
1) The Elder Ray readings : Bull Power rises from +62 to +118 Bear Power reduces from -15 to +48, indicating that now the Bears are out of their safe zone, and that the Bulls are firmly in the driver's seat. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5850 to regain their lost grounds.
2) The Nifty has now closed above all its key EMAs and also above all its key DMAs. However, the key EMAs are stacked inversely as of now, which the Bulls will have to take care of.
3) The fast stochastics are already in the overbought zone, with the slow stochastics following closely.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD is rising with a positive divergence, with the histogram also rising in the positive zone. The ADX is now clearly favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now pegged at 5669.
5) Considering the above, our trading plan for the day is as under.
a) Around 5905 we will open fresh long positions with a SL of 5880 and a target of 5965. We will add to these long positions only above 6010.
b) Around 5990 we will open fresh short positions with a SL of 6010 and a target of 5940. We will add to these short positions only below 5880.
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 on Friday, it turned out to be a crucial week end on the Nifty. The Nifty opened with a positive gap of 20 points and not only managed to hold on to that gap, but actually build heavily on that gap to make a high of 5953 before closing at 5946, with a gain of a whopping 82 points. Thus, on the weekly chart, the Nifty has made a bullish engulfing pattern, which is indicating that now the trend is truly in favor of the Bulls. However, a word of caution may not be out of place, that the volatility is on the rise, and the up move on the Nifty now onwards will be punctuated with fairly swift and deep corrections. Our trades on Friday, attempting to go short, were stopped out, and in the process we lost 35 points on that day.
1) The Elder Ray readings : Bull Power rises from +62 to +118 Bear Power reduces from -15 to +48, indicating that now the Bears are out of their safe zone, and that the Bulls are firmly in the driver's seat. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5850 to regain their lost grounds.
2) The Nifty has now closed above all its key EMAs and also above all its key DMAs. However, the key EMAs are stacked inversely as of now, which the Bulls will have to take care of.
3) The fast stochastics are already in the overbought zone, with the slow stochastics following closely.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD is rising with a positive divergence, with the histogram also rising in the positive zone. The ADX is now clearly favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now pegged at 5669.
5) Considering the above, our trading plan for the day is as under.
a) Around 5905 we will open fresh long positions with a SL of 5880 and a target of 5965. We will add to these long positions only above 6010.
b) Around 5990 we will open fresh short positions with a SL of 6010 and a target of 5940. We will add to these short positions only below 5880.
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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