Nifty gets sold off, but holds on to rising support levels. Breakout imminent now.
As discussed yesterday, we expected the Nifty to be poised for a breakout. However, the market had different ideas, and it seems the breakout program has got delayed by one day at least. The Nifty opened with a positive gap of 11 points and traded bullishly for the first few hours of trade, but could not scale the highs of 5879 which were made earlier in the day. There came in profit booking and the Nifty went down, but held on to the rising supports at 5790 and made a low of 5803 before closing at 5817. We did enter one trade and booked a small loss of 10 points.
1) The Elder Ray readings : Bull Power rises from +58 to +71 Bear Power also rises from +28 to -5, indicating that the Bears have now recovered, but need more to do to remain in the contention. For today, the Bulls need to overcome the levels of 5885 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5800 to maintain their downwards momentum.
2) The stochastics keep on hovering around the overbought zone, confirming the bullish bias.
3) The Nifty has closed above is 21EMA and 13EMA, but below its 8EMA and also below all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to point upwards from the negative and the histogram continues to remain in the positive. The ADX is suggesting a equal favor to both the Bulls and the Bears. The Parabolic SAR continues with its buy signal with the SL now at 5655.
5) Considering the above, our trading plan for the day is as under.
a) Around 5810 we will open fresh long positions with a SL of 5790 and a target of 5860. We will add to these long positions only above 5885.
b) Around 5870 we will open fresh short positions with a SL of 5885 and a target of 5825. 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 yesterday, we expected the Nifty to be poised for a breakout. However, the market had different ideas, and it seems the breakout program has got delayed by one day at least. The Nifty opened with a positive gap of 11 points and traded bullishly for the first few hours of trade, but could not scale the highs of 5879 which were made earlier in the day. There came in profit booking and the Nifty went down, but held on to the rising supports at 5790 and made a low of 5803 before closing at 5817. We did enter one trade and booked a small loss of 10 points.
1) The Elder Ray readings : Bull Power rises from +58 to +71 Bear Power also rises from +28 to -5, indicating that the Bears have now recovered, but need more to do to remain in the contention. For today, the Bulls need to overcome the levels of 5885 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5800 to maintain their downwards momentum.
2) The stochastics keep on hovering around the overbought zone, confirming the bullish bias.
3) The Nifty has closed above is 21EMA and 13EMA, but below its 8EMA and also below all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to point upwards from the negative and the histogram continues to remain in the positive. The ADX is suggesting a equal favor to both the Bulls and the Bears. The Parabolic SAR continues with its buy signal with the SL now at 5655.
5) Considering the above, our trading plan for the day is as under.
a) Around 5810 we will open fresh long positions with a SL of 5790 and a target of 5860. We will add to these long positions only above 5885.
b) Around 5870 we will open fresh short positions with a SL of 5885 and a target of 5825. 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
Sir
ReplyDeleteWould you recommend any shirt trade at cyrrent levels or sitting or sitting on sides
Nifty is in a strong up-move now. Prudence would be in waiting for a dip if it comes in the range of 5925 5915 and then initiate a long position with a small SL
DeleteThe dip came to 5925 and has sustained there abouts.
ReplyDeleteOpened fresh long position at 5925 with a SL of 5905 and targets above day's highs.
Sir,
ReplyDeleteThe current rally in R COM.Can we enter at the current level of 143-145.If yes.possible target can go up to.Please advice.