Nifty shows signs of a developing up move. Buy on dips till closes above open.
As discussed yesterday, the Positive up move that was expected, unfolded on the bourses. The Nifty opened with a positive gap of 15 points and maintained that gap for most of the trading session. For a brief period it dipped towards 5676, but the Bulls took over and the Nifty closed with a gain of 22 points and above the psychological level of 5700. None of our trading plans got triggered.
1) The Elder Ray readings : Bull Power rises from -40 to -8 Bear Power reduces from -128 to -53, indicating that the Bulls are now on the verge of recovery, however, they still need to keep thrusting on. For today, the Bulls need to overcome the levels of 5730 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5670 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA and its 200DMA, however, it has closed below its other key EMAs and other key DMAs.
3) The stochastics are just out of the oversold zone and are looking upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the up move may get arrested soon. The MACD continues to remain in the negative however, the histogram is reducing. The ADX is suggesting equal momentum for both the Bulls and the Bears. The Parabolic SAR continues to give out its sell signal with a SL at 5812.
5) Considering the above, our trading plan for the day is as under.
a) Around 5680, we will open fresh long positions with a SL of 5655 and a target of 5725. We will add to these long positions only above 5770.
b) Around 5745, we will open fresh short positions with a SL of 5770 and a target of 5695. We will add to these short positions only below 5655.
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 Positive up move that was expected, unfolded on the bourses. The Nifty opened with a positive gap of 15 points and maintained that gap for most of the trading session. For a brief period it dipped towards 5676, but the Bulls took over and the Nifty closed with a gain of 22 points and above the psychological level of 5700. None of our trading plans got triggered.
1) The Elder Ray readings : Bull Power rises from -40 to -8 Bear Power reduces from -128 to -53, indicating that the Bulls are now on the verge of recovery, however, they still need to keep thrusting on. For today, the Bulls need to overcome the levels of 5730 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5670 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA and its 200DMA, however, it has closed below its other key EMAs and other key DMAs.
3) The stochastics are just out of the oversold zone and are looking upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the up move may get arrested soon. The MACD continues to remain in the negative however, the histogram is reducing. The ADX is suggesting equal momentum for both the Bulls and the Bears. The Parabolic SAR continues to give out its sell signal with a SL at 5812.
5) Considering the above, our trading plan for the day is as under.
a) Around 5680, we will open fresh long positions with a SL of 5655 and a target of 5725. We will add to these long positions only above 5770.
b) Around 5745, we will open fresh short positions with a SL of 5770 and a target of 5695. We will add to these short positions only below 5655.
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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