Bulls pause in their up move, Bears not active as yet, Nifty gets range bound.
As discussed yesterday, we saw the Bulls takeover the Nifty, as they yet again breached the previous day's highs. However, they could not retain the same momentum by the end of the trading session, and the Nifty closed with a minor loss of 3 points at 5942. The Nifty remained in a 40 point range, which was not trade able. We were happy to wait on the sidelines without plunging into any trade.
1) The Elder Ray readings : Bull Power rises from +118 to +121 Bear Power reduces from +48 to +80, indicating that the Bulls are really in control and that the Bears are now pretty much out of the reckoning. For today, the Bulls need to overcome the levels of 5990 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5865 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above its 100DMA and 200DMA. However, it has for once, closed below its 50DMA.
3) The stochastics have now entered the overbought zone.
4) In the above chart, the Nifty has shown a shooting start pattern, which at the top of a swing up, is known to be quite bearish. The volumes have decreased with the fall in the Nifty indicating that the down move may find supports nearby. The MACD continues to rise from the negative zone, with the histogram rising merrily. The ADX is suggesting a pause in the up move but is still in strong favor of the Bulls. The Parabolic SAR continues with its buy signal with the SL now pegged at 5681.
5) Considering the above, our trading plan for the day is as under.
a) Around 5900 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 6005.
b) Around 5990 we will open fresh short positions with a SL of 6005 and a target of 5935. 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 yesterday, we saw the Bulls takeover the Nifty, as they yet again breached the previous day's highs. However, they could not retain the same momentum by the end of the trading session, and the Nifty closed with a minor loss of 3 points at 5942. The Nifty remained in a 40 point range, which was not trade able. We were happy to wait on the sidelines without plunging into any trade.
1) The Elder Ray readings : Bull Power rises from +118 to +121 Bear Power reduces from +48 to +80, indicating that the Bulls are really in control and that the Bears are now pretty much out of the reckoning. For today, the Bulls need to overcome the levels of 5990 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5865 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above its 100DMA and 200DMA. However, it has for once, closed below its 50DMA.
3) The stochastics have now entered the overbought zone.
4) In the above chart, the Nifty has shown a shooting start pattern, which at the top of a swing up, is known to be quite bearish. The volumes have decreased with the fall in the Nifty indicating that the down move may find supports nearby. The MACD continues to rise from the negative zone, with the histogram rising merrily. The ADX is suggesting a pause in the up move but is still in strong favor of the Bulls. The Parabolic SAR continues with its buy signal with the SL now pegged at 5681.
5) Considering the above, our trading plan for the day is as under.
a) Around 5900 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 6005.
b) Around 5990 we will open fresh short positions with a SL of 6005 and a target of 5935. 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
Opened long position at 5905 with a SL of 5880 and a target of 5965 as per trading plan(a)
ReplyDeleteSquared off long position at 5928 with a 23 point profit as we do not wish to get into the last hour whipsaws.
ReplyDeleteOpened intraday short position at 5940 as Nifty tried to reach above pivot point but failed. Put a SL at 5960.
ReplyDeleteSquared off intraday short position at 5925 for a quick 15 point profit.
ReplyDeleteTotal profit for the day 38 points