After yesterday's violent gyrations, Nifty trend can get clearer in today's session.
As discussed yesterday, we saw the Nifty still in equilibrium, with both the Bears and the Bulls asserting their stamp of authority on the Nifty. The Nifty opened with a negative gap of 6 points and then drifted down to make a low of 5792, before the Bulls took over and swept the Nifty past 5900 to make a high of 5920 before closing at 5909 with a gain of 58 points. What looked as a gloomy day of trade, turned out into a rosy scenario by the end of day. Both our trading plans hit their stop losses and we lost 40 points. However, we must note, that the Nifty breached our identified extremes by just 5 points on either side.
1) The Elder Ray readings : Bull Power rises from +36 to +55 Bear Power also rises from -16 to -74 indicating that Nifty is entering a violent phase with both the Bulls and Bears getting stronger and being in their respective safe zones. For today, the Bulls need to overcome the levels of 5930 to maintain their upwards momentum whereas the Bears need to breach the levels of 5790 to maintain their downwards momentum.
2) The Nifty has closed above all its key EMAs and also above its 100DMA and its 200DMA. However, it has closed below its 50DMA.
3) The stochastics are just below the overbought zone and are pointing across each other.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is rising from the negative zone, but the histogram being positive is suggesting a pause. The ADX is suggesting a rise in the downwards momentum, and a fall in the upwards momentum and is actually favoring the Bears now. The Parabolic SAR continues with its buy signal with the SL now at 5731.
5) Considering the above, our trading plan for the day is as under.
a) Around 5850 we will open fresh long positions with a SL of 5830 and a target of 5945. We will add to these long positions only above 5980.
b) Around 5960 we will open fresh short positions with a SL of 5980 and a target of 5870. We will add to these short positions only below 5830.
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 Nifty still in equilibrium, with both the Bears and the Bulls asserting their stamp of authority on the Nifty. The Nifty opened with a negative gap of 6 points and then drifted down to make a low of 5792, before the Bulls took over and swept the Nifty past 5900 to make a high of 5920 before closing at 5909 with a gain of 58 points. What looked as a gloomy day of trade, turned out into a rosy scenario by the end of day. Both our trading plans hit their stop losses and we lost 40 points. However, we must note, that the Nifty breached our identified extremes by just 5 points on either side.
1) The Elder Ray readings : Bull Power rises from +36 to +55 Bear Power also rises from -16 to -74 indicating that Nifty is entering a violent phase with both the Bulls and Bears getting stronger and being in their respective safe zones. For today, the Bulls need to overcome the levels of 5930 to maintain their upwards momentum whereas the Bears need to breach the levels of 5790 to maintain their downwards momentum.
2) The Nifty has closed above all its key EMAs and also above its 100DMA and its 200DMA. However, it has closed below its 50DMA.
3) The stochastics are just below the overbought zone and are pointing across each other.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is rising from the negative zone, but the histogram being positive is suggesting a pause. The ADX is suggesting a rise in the downwards momentum, and a fall in the upwards momentum and is actually favoring the Bears now. The Parabolic SAR continues with its buy signal with the SL now at 5731.
5) Considering the above, our trading plan for the day is as under.
a) Around 5850 we will open fresh long positions with a SL of 5830 and a target of 5945. We will add to these long positions only above 5980.
b) Around 5960 we will open fresh short positions with a SL of 5980 and a target of 5870. We will add to these short positions only below 5830.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty kissed our trading plan(a) target and now reversing towards a long entry identified in trading plan(a)
ReplyDeleteOpened positional long position at 5870 with a SL of 5820 and a target of 6070 within next week.
ReplyDeleteBullish engulf of last week and a huge rush asserting that yesterday, is prompting this decision.
sir
ReplyDeletecan you explain bearish engulf ,is it on daily charts or weekly?
and the basis of target 6070
thanks
amit
Dear Amit,
DeleteIt is a Bullish engulf and not Bearish one.
Please check out weekly chart of Nifty and it will be clear.
sir
ReplyDeleteglobal events such as the news today ,how much correction do you see,the index has touched stoploss intraday ,
plz advice