Although the Nifty displayed a red candle, the Bulls are still at advantage.
As discussed on Friday, the equilibrium on the Nifty, was tilted towards the Bulls. The Nifty opened with a positive gap of 53 points at 5890 and immediately made a new high for the week at 5900. But then some profit booking crept in, and the Nifty came down to 5858, where it found support again and closed at 5868, in what was a very narrow trading range for the day. We could book a small profit of 15 points during this narrow ranged day.
1) The Elder Ray readings : Bull Power rises from +65 to +105 Bear Power reduces from +3 to +63 indicating that the Bulls have still managed to increase their strength and the Bears have lost more grounds. For today, the Bulls need to overcome the levels of 5915 to maintain their upwards momentum whereas the Bears need to breach the levels of 5810 to regain their lost grounds.
2) The stochastics are hovering around the overbought zone, confirming the Bullish momentum.
3) The Nifty has closed all its key EMAs and also above its 200DMA and 100DMA. However, it has closed below its 50DMA (5924).
4) In the above chart, the volumes have decreased indicating lack of participation. The MACD continues to point upwards being in the negative, with the histogram growing in the positive region. The ADX is now suggesting strong favor for the bulls. The Parabolic SAR continues with its buy signal with the SL now at 5623.
5) Considering the above, our trading plan for the day is as under.
a) Around 5815 we will open fresh long positions with a SL of 5790 and a target of 5885. We will add to these long positions only above 5940.
b) Around 5915 we will open fresh short positions with a SL of 5940 and a target of 5845. We will add to these short positions only below 5790.
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 on Friday, the equilibrium on the Nifty, was tilted towards the Bulls. The Nifty opened with a positive gap of 53 points at 5890 and immediately made a new high for the week at 5900. But then some profit booking crept in, and the Nifty came down to 5858, where it found support again and closed at 5868, in what was a very narrow trading range for the day. We could book a small profit of 15 points during this narrow ranged day.
1) The Elder Ray readings : Bull Power rises from +65 to +105 Bear Power reduces from +3 to +63 indicating that the Bulls have still managed to increase their strength and the Bears have lost more grounds. For today, the Bulls need to overcome the levels of 5915 to maintain their upwards momentum whereas the Bears need to breach the levels of 5810 to regain their lost grounds.
2) The stochastics are hovering around the overbought zone, confirming the Bullish momentum.
3) The Nifty has closed all its key EMAs and also above its 200DMA and 100DMA. However, it has closed below its 50DMA (5924).
4) In the above chart, the volumes have decreased indicating lack of participation. The MACD continues to point upwards being in the negative, with the histogram growing in the positive region. The ADX is now suggesting strong favor for the bulls. The Parabolic SAR continues with its buy signal with the SL now at 5623.
5) Considering the above, our trading plan for the day is as under.
a) Around 5815 we will open fresh long positions with a SL of 5790 and a target of 5885. We will add to these long positions only above 5940.
b) Around 5915 we will open fresh short positions with a SL of 5940 and a target of 5845. We will add to these short positions only below 5790.
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 now triggered and opened fresh long position at 5805 with a SL of 5790
ReplyDeleteSL Hit at 5790. Booked loss of 15 points.
ReplyDelete