Nifty trading range-bound for days together seems to be poised for a breakout.
As discussed yesterday, the Nifty stayed within its trading range for the entire trading session, once again after opening with a positive gap and maintaining that gap throughout the day. The Nifty opened at 5835 up by 23 points and closed at 5859 with a gain of 47 points after making a high of 5865. None of our trading plans got triggered and we were happy sitting on the fence.
1) The Elder Ray readings : Bull Power rises from +36 to +58 Bear Power reduces from -22 to +28 indicating that the Bears have now lost their safe zone immediately on the next day of regaining it twice on the trot. For today, the Bulls need to overcome the levels of 5875 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5810 to regain their lost grounds.
2) The Nifty continues to hover around the overbought zone.
3) The Nifty has now closed above all its key EMAs and also above its 100DMA and 200DMA. However, it is below its 50DMA (5921).
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the rise may stall. The MACD continues to point up with the histogram remaining in the positive. The ADX is now favoring the Bulls, but is indicating loss of momentum in the rise. The Parabolic SAR continues with its buy signal with the SL now pegged at 5645.
5) Considering the above, our trading plan for the day is as under.
a) Above 5835, we will open fresh long positions with a SL of 5815 and a target of 5920. We will add to these long positions only above 5935.
b) Around 5925, we will open fresh short positions with a SL of 5935 and a target of 5845. We will add to these short positions only below 5815.
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 Nifty stayed within its trading range for the entire trading session, once again after opening with a positive gap and maintaining that gap throughout the day. The Nifty opened at 5835 up by 23 points and closed at 5859 with a gain of 47 points after making a high of 5865. None of our trading plans got triggered and we were happy sitting on the fence.
1) The Elder Ray readings : Bull Power rises from +36 to +58 Bear Power reduces from -22 to +28 indicating that the Bears have now lost their safe zone immediately on the next day of regaining it twice on the trot. For today, the Bulls need to overcome the levels of 5875 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5810 to regain their lost grounds.
2) The Nifty continues to hover around the overbought zone.
3) The Nifty has now closed above all its key EMAs and also above its 100DMA and 200DMA. However, it is below its 50DMA (5921).
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the rise may stall. The MACD continues to point up with the histogram remaining in the positive. The ADX is now favoring the Bulls, but is indicating loss of momentum in the rise. The Parabolic SAR continues with its buy signal with the SL now pegged at 5645.
5) Considering the above, our trading plan for the day is as under.
a) Above 5835, we will open fresh long positions with a SL of 5815 and a target of 5920. We will add to these long positions only above 5935.
b) Around 5925, we will open fresh short positions with a SL of 5935 and a target of 5845. We will add to these short positions only below 5815.
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. Opened fresh long position at 5828 with a SL of 5790
ReplyDeleteBooked a small loss of 10 points at EOD
ReplyDelete