As the Bullish up move pauses and Bears try to regain footing, Nifty consolidates.
As discussed yesterday, the Bull march paused on the Nifty after 5 trading sessions. The Nifty opened flat in the morning, made a high of 5952 and then got sold off to make a low of 5894, bounced back again to reach out to the high point but failed and closed at 5914 with a loss of 28 points. During this volatility, we took two trades, one as per plan and the other spontaneous and booked a profit of 38 points in both trades put together.
1) The Elder Ray readings : Bull Power reduces from +121 to +93 Bear Power rises from +80 to +34 indicating that though the Bears have recovered some grounds, they need more to do. For today, the Bulls need to overcome the levels of 5965 to maintain their upwards momentum, whereas the Bears need to breach the levels of 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 closed below its 50DMA.
3) The stochastics are in the overbought zone and are pointing downwards.
4) In the above chart, the volumes have remained stagnant with a fall in the Nifty indicating lack of participation. The MACD continues to rise and the histogram continues to remain positive. The ADX is suggesting a fall in the bullish momentum and a rise in the bearish momentum, but is still favoring the bulls. The Parabolic SAR continues with its buy signal with the SL now at 5699.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875 we will open fresh long positions with a SL of 5850 and a target of 5935. We will add to these long positions only above 5975.
b) Around 5950 we will open fresh short positions with a SL of 5975 and a target of 5885. We will add to these short positions only below 5850.
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 Bull march paused on the Nifty after 5 trading sessions. The Nifty opened flat in the morning, made a high of 5952 and then got sold off to make a low of 5894, bounced back again to reach out to the high point but failed and closed at 5914 with a loss of 28 points. During this volatility, we took two trades, one as per plan and the other spontaneous and booked a profit of 38 points in both trades put together.
1) The Elder Ray readings : Bull Power reduces from +121 to +93 Bear Power rises from +80 to +34 indicating that though the Bears have recovered some grounds, they need more to do. For today, the Bulls need to overcome the levels of 5965 to maintain their upwards momentum, whereas the Bears need to breach the levels of 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 closed below its 50DMA.
3) The stochastics are in the overbought zone and are pointing downwards.
4) In the above chart, the volumes have remained stagnant with a fall in the Nifty indicating lack of participation. The MACD continues to rise and the histogram continues to remain positive. The ADX is suggesting a fall in the bullish momentum and a rise in the bearish momentum, but is still favoring the bulls. The Parabolic SAR continues with its buy signal with the SL now at 5699.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875 we will open fresh long positions with a SL of 5850 and a target of 5935. We will add to these long positions only above 5975.
b) Around 5950 we will open fresh short positions with a SL of 5975 and a target of 5885. We will add to these short positions only below 5850.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opens right near to our buy zone. Will need to watch this opening level carefully before taking any trades.
ReplyDeleteOpened long position at 5876 with a SL of 5850 as per trading plan(a)
ReplyDeleteSL hit at 5850. Booked loss of 26 points.
ReplyDelete