Midweek indecision resolves on the up side. Week may end on a high note.
As discussed yesterday, the breakout which was delayed by a day, came out and the Nifty after opening with a positive gap of 78 points kept on trading with a bullish bias and made a high of 5949 before closing at 5935, maintaining its bullish stance. It was a day for swing traders and not much was there for intraday traders over there. We could garner a small profit of 15 points after waiting patiently for our entry and modifying our trading plan.
1) The Elder Ray readings : Bull Power rises from +71 to +123 Bear Power reduces from -5 to +62 indicating that the Bears are not able to sustain in their safe zone recently. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5835 to regain their lost grounds.
2) The stochastics are now in the overbought zone and is yet pointing upwards.
3) The Nifty has now closed above all its key EMAs and also above all its key DMAs. Having conquered all the important moving averages, the Nifty looks poised for more gains.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating lack of participation in this rise, which may find roadblocks ahead. The MACD continues to rise and the histogram too is rising in the positive. The ADX is now favoring the Bulls but the overall momentum as per the ADX is reducing. The Parabolic SAR continues with its buy signal with a SL now at 5667.
5) Considering the above, our trading plan for the day is as under.
a) Above 5925 we will open fresh long positions with a SL of 5900 and a target of 5970. We will add to these long positions only above 6010.
b) Around 5985 we will open fresh short positions with a SL of 6010 and a target of 5940. We will add to these short positions only below 5900.
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 breakout which was delayed by a day, came out and the Nifty after opening with a positive gap of 78 points kept on trading with a bullish bias and made a high of 5949 before closing at 5935, maintaining its bullish stance. It was a day for swing traders and not much was there for intraday traders over there. We could garner a small profit of 15 points after waiting patiently for our entry and modifying our trading plan.
1) The Elder Ray readings : Bull Power rises from +71 to +123 Bear Power reduces from -5 to +62 indicating that the Bears are not able to sustain in their safe zone recently. For today, the Bulls need to overcome the levels of 5970 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5835 to regain their lost grounds.
2) The stochastics are now in the overbought zone and is yet pointing upwards.
3) The Nifty has now closed above all its key EMAs and also above all its key DMAs. Having conquered all the important moving averages, the Nifty looks poised for more gains.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating lack of participation in this rise, which may find roadblocks ahead. The MACD continues to rise and the histogram too is rising in the positive. The ADX is now favoring the Bulls but the overall momentum as per the ADX is reducing. The Parabolic SAR continues with its buy signal with a SL now at 5667.
5) Considering the above, our trading plan for the day is as under.
a) Above 5925 we will open fresh long positions with a SL of 5900 and a target of 5970. We will add to these long positions only above 6010.
b) Around 5985 we will open fresh short positions with a SL of 6010 and a target of 5940. We will add to these short positions only below 5900.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Squared off yesterday's carry forward long position at 5985 booking a profit of 40 points
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