As the up move continues on the Nifty, 5800 is the key level to be watched for now.
As discussed yesterday, the Up move on the Nifty continued, and the Nifty closed near the threshold level of 5750. The Nifty opened with a minor down gap of 2 points then tested our identified support levels of 5680 where the Bulls took over and the Nifty consistently rose to cross our target levels of 5735 and closed well above that at 5748 after making a intra-day high of 5755. Our trading plan(a) got triggered and met its target yielding a profit of 45 points.
1) The Elder Ray readings : Bull Power rises from -8 to +23 Bear Power reduces from -53 to -45 indicating that now with both the Bulls and the Bears in their respective territories, the Nifty is likely to indulge in volatility or tranquility. For today, the Bulls need to overcome the levels of 5760 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5685 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA and 13EMA and also above its 200DMA. However, it has closed below its 21EMA (5763) and also its 50DMA and 100DMA.
3) The stochastics are in the neutral zone and are pointing upwards.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating that the rise may continue. The MACD is on the verge of giving out a positive divergence. The ADX is now favoring the Bulls. The Parabolic SAR continues with its sell signal with a SL of 5783.
5) Considering the above, our trading plan for the day is as under.
a) Around 5715 we will open fresh long positions with a SL of 5685 and a target of 5780. We will add to these long positions only above 5815.
b) Around 5795 we will open fresh short positions with a SL of 5815 and a target of 5730. We will add to these short positions only below 5685.
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 Up move on the Nifty continued, and the Nifty closed near the threshold level of 5750. The Nifty opened with a minor down gap of 2 points then tested our identified support levels of 5680 where the Bulls took over and the Nifty consistently rose to cross our target levels of 5735 and closed well above that at 5748 after making a intra-day high of 5755. Our trading plan(a) got triggered and met its target yielding a profit of 45 points.
1) The Elder Ray readings : Bull Power rises from -8 to +23 Bear Power reduces from -53 to -45 indicating that now with both the Bulls and the Bears in their respective territories, the Nifty is likely to indulge in volatility or tranquility. For today, the Bulls need to overcome the levels of 5760 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5685 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA and 13EMA and also above its 200DMA. However, it has closed below its 21EMA (5763) and also its 50DMA and 100DMA.
3) The stochastics are in the neutral zone and are pointing upwards.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating that the rise may continue. The MACD is on the verge of giving out a positive divergence. The ADX is now favoring the Bulls. The Parabolic SAR continues with its sell signal with a SL of 5783.
5) Considering the above, our trading plan for the day is as under.
a) Around 5715 we will open fresh long positions with a SL of 5685 and a target of 5780. We will add to these long positions only above 5815.
b) Around 5795 we will open fresh short positions with a SL of 5815 and a target of 5730. We will add to these short positions only below 5685.
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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