Amidst bouts of profit booking, the Nifty clings on to critical supports.
As discussed yesterday, we saw the Bulls take a breather. The Nifty opened flat, and then traded in a narrow band of 35 40 points for most of the trading session. One attempt at 6200 in the afternoon, failed at 6180 and the Nifty closed at 6114 before making a low of 6102. However, the technical outlook still remains bullish in the medium term, albeit in the shorter term we could see choppiness. Our trading plan (a) triggered and missed the target by about 20 points. We could garner a small profit of 45 points by trailing our SL. The trading plan triggered yet again, but it was too late in the day and we did not take that trade.
1) The Elder Ray readings : Bull Power reduces from +164 to +108 Bear Power rises from +81 to +30 indicating that although the Bears have gained much yesterday, they still have some more work to do. The Bulls are sitting happily in their safe zone as yet. For today, the Bulls need to overcome the levels of 6190 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6075 to regain their lost grounds.
2) The fast stochastics are still in the overbought zone, while the slow stochastics are just below it and pointing downwards.
3) The Nifty has closed yet again above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating lack of participation in the down move. The MACD is just about to give a negative diversion, but has not yet given it out. The histogram continues to remain in the positive. The ADX is suggesting a loss of momentum for the Bulls and a gain of momentum for the Bears, but is still favoring the Bulls. The Parabolic SAR continues to give out its Buy signal with a SL now at 6017.
5) Considering the above, our trading plan for the day is as under.
a) Around 6075 we will open fresh long positions with a SL of 6050 and a target of 6150. We will add to these long positions only above 6175.
b) Around 6155 we will open fresh short positions with a SL of 6175 and a target of 6110. We will add to these short positions only below 6050.
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 take a breather. The Nifty opened flat, and then traded in a narrow band of 35 40 points for most of the trading session. One attempt at 6200 in the afternoon, failed at 6180 and the Nifty closed at 6114 before making a low of 6102. However, the technical outlook still remains bullish in the medium term, albeit in the shorter term we could see choppiness. Our trading plan (a) triggered and missed the target by about 20 points. We could garner a small profit of 45 points by trailing our SL. The trading plan triggered yet again, but it was too late in the day and we did not take that trade.
1) The Elder Ray readings : Bull Power reduces from +164 to +108 Bear Power rises from +81 to +30 indicating that although the Bears have gained much yesterday, they still have some more work to do. The Bulls are sitting happily in their safe zone as yet. For today, the Bulls need to overcome the levels of 6190 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6075 to regain their lost grounds.
2) The fast stochastics are still in the overbought zone, while the slow stochastics are just below it and pointing downwards.
3) The Nifty has closed yet again above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating lack of participation in the down move. The MACD is just about to give a negative diversion, but has not yet given it out. The histogram continues to remain in the positive. The ADX is suggesting a loss of momentum for the Bulls and a gain of momentum for the Bears, but is still favoring the Bulls. The Parabolic SAR continues to give out its Buy signal with a SL now at 6017.
5) Considering the above, our trading plan for the day is as under.
a) Around 6075 we will open fresh long positions with a SL of 6050 and a target of 6150. We will add to these long positions only above 6175.
b) Around 6155 we will open fresh short positions with a SL of 6175 and a target of 6110. We will add to these short positions only below 6050.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) has triggered now.
ReplyDeleteOpened fresh long positions at 6075 with a SL of 6050.
Squared off intraday long positions at 6100 for a quick 25 point profit
ReplyDelete