Nifty gains 200 points in two sessions, may see some cooling off. Buy those dips.
As discussed on Friday, the Nifty ended on a bullish note, making a new weekly high and closing just below that one. The Nifty opened with a whopping gap of 65 points at 6000, made a quick high of 6018 and then struggled for almost the entire session, but never breached 5950 and in the last hour of trade, again made that high and closed at 6009. We took our 40 points profit on the trade that was opened on the previous day.
1) The Elder Ray readings : Bull Power rises from +123 to +167 Bear Power reduces from +62 to +99 indicating that the Bulls are now driving the Nifty and that the Bears are way out of their safe zone. For today, the Bulls need to overcome the levels of 6045 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5875 to regain their lost grounds.
2) The stochastics are well and deep into the overbought zone and are still pointing upwards.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue as of now. The MACD continues to point upwards and the histogram continues to grow in the positive. The ADX is now favoring the Bulls and is also suggesting a rise in the overall momentum. The Parabolic SAR continues with its Buy signal with a SL now at 5688.
5) Considering the above, our trading plan for the day is as under.
a) Around 5985 we will open fresh long positions with a SL of 5960 and a target of 6050. We will add to these long positions only above 6085.
b) Around 6065 we will open fresh short positions with a SL of 6085 and a target of 5990. We will add to these short positions only below 5960.
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 Nifty ended on a bullish note, making a new weekly high and closing just below that one. The Nifty opened with a whopping gap of 65 points at 6000, made a quick high of 6018 and then struggled for almost the entire session, but never breached 5950 and in the last hour of trade, again made that high and closed at 6009. We took our 40 points profit on the trade that was opened on the previous day.
1) The Elder Ray readings : Bull Power rises from +123 to +167 Bear Power reduces from +62 to +99 indicating that the Bulls are now driving the Nifty and that the Bears are way out of their safe zone. For today, the Bulls need to overcome the levels of 6045 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5875 to regain their lost grounds.
2) The stochastics are well and deep into the overbought zone and are still pointing upwards.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue as of now. The MACD continues to point upwards and the histogram continues to grow in the positive. The ADX is now favoring the Bulls and is also suggesting a rise in the overall momentum. The Parabolic SAR continues with its Buy signal with a SL now at 5688.
5) Considering the above, our trading plan for the day is as under.
a) Around 5985 we will open fresh long positions with a SL of 5960 and a target of 6050. We will add to these long positions only above 6085.
b) Around 6065 we will open fresh short positions with a SL of 6085 and a target of 5990. We will add to these short positions only below 5960.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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