Holding key supports, Nifty undergoes healthy consolidation with a Bullish bias.
As discussed yesterday, we saw Nifty in equilibrium, and both the Bulls and the Bears score some heavy points in the trade yesterday, as the Nifty traded right between our identified supports and resistances. The Nifty opened flat and traded in the red for the first four hours after making initial highs of 6098 and 6111 and lows of 6062 and 6055. Thereafter, the Bulls came back and took the Nifty to 6120. The Bears then took it to 6081. Again the Bulls took it to 6128. The Bears then took it to 6090. Finally, the Nifty closed at 6111 with a gain of 28 points. In all this hullabaloo, none of our trading plans triggered. We think it is better to miss a trade rather than getting entangled in a wrong trade.
1) The Elder Ray readings : Bull Power rises from +46 to +65 Bear Power reduces from -78 to -7 indicating that the tilt is now towards the Bulls but just slightly. For today, the Bulls need to overcome the levels of 6135 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 6050 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing upwards.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD is pointing downwards and the histogram is in the negative, but rising. The ADX is favoring the Bulls but indicating loss of overall momentum. The Parabolic SAR continues with its sell signal with a SL now pegged at 6201.
5) Considering the above, our trading plan for the day is as under.
a) Around 6090, we will open fresh long positions with a SL of 6070 and a target of 6150. We will add to these long positions only above 6180.
b) Around 6165, we will open fresh short positions with a SL of 6180 and a target of 6105. We will add to these short positions only below 6070.
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 Nifty in equilibrium, and both the Bulls and the Bears score some heavy points in the trade yesterday, as the Nifty traded right between our identified supports and resistances. The Nifty opened flat and traded in the red for the first four hours after making initial highs of 6098 and 6111 and lows of 6062 and 6055. Thereafter, the Bulls came back and took the Nifty to 6120. The Bears then took it to 6081. Again the Bulls took it to 6128. The Bears then took it to 6090. Finally, the Nifty closed at 6111 with a gain of 28 points. In all this hullabaloo, none of our trading plans triggered. We think it is better to miss a trade rather than getting entangled in a wrong trade.
1) The Elder Ray readings : Bull Power rises from +46 to +65 Bear Power reduces from -78 to -7 indicating that the tilt is now towards the Bulls but just slightly. For today, the Bulls need to overcome the levels of 6135 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 6050 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing upwards.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD is pointing downwards and the histogram is in the negative, but rising. The ADX is favoring the Bulls but indicating loss of overall momentum. The Parabolic SAR continues with its sell signal with a SL now pegged at 6201.
5) Considering the above, our trading plan for the day is as under.
a) Around 6090, we will open fresh long positions with a SL of 6070 and a target of 6150. We will add to these long positions only above 6180.
b) Around 6165, we will open fresh short positions with a SL of 6180 and a target of 6105. We will add to these short positions only below 6070.
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 and have taken intraday long position at 6095 with a SL of 6070 and a target of 6150.
ReplyDeleteSquared off intraday long position at 6110 locking a profit of 15 points.
ReplyDelete