Yesterday's price action indicates exhaustion creeping in. Caution for Bulls.
As discussed yesterday, Nifty maintained its bullish bias, and as suggested to buy those dips, the trades would have been rewarded. Having said that, the price action is indicative of some exhaustion creeping in and caution is suggested for long positions going ahead. The Nifty opened with a negative gap of 18 points as the expected profit booking came in after a 200 point up move. Then the Bulls took over and the Nifty withheld the day's lows and moved past the day's highs to make a high of 6038 before closing at 6031.
1) The Elder Ray readings : Bull Power reduces from +167 to +160 Bear Power also reduces from +99 to +103 indicating that the Bulls are losing steam here, but the Bears are nowhere in the picture to take advantage of that fact. For today, the Bulls need to overcome the levels of 6065 to maintain their upwards momentum whereas the Bears need to breach the levels of 5890 to regain their lost grounds.
2) The stochastics continue to remain well and deep into the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may stall shortly. The MACD continues to rise and the histogram also continues to rise. ADX is suggesting a pause in the Bullish momentum but is still favoring the Bulls. The Parabolic SAR continues to give out a buy signal with the SL at 5716.
5) Considering the above, our trading plan for the day is as under.
a) Around 5970 we will open fresh long positions with a SL of 5950 and a target of 6020. We will add to these long positions only above 6050.
b) Around 6030 we will open fresh short positions with a SL of 6050 and a target of 5980. 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 yesterday, Nifty maintained its bullish bias, and as suggested to buy those dips, the trades would have been rewarded. Having said that, the price action is indicative of some exhaustion creeping in and caution is suggested for long positions going ahead. The Nifty opened with a negative gap of 18 points as the expected profit booking came in after a 200 point up move. Then the Bulls took over and the Nifty withheld the day's lows and moved past the day's highs to make a high of 6038 before closing at 6031.
1) The Elder Ray readings : Bull Power reduces from +167 to +160 Bear Power also reduces from +99 to +103 indicating that the Bulls are losing steam here, but the Bears are nowhere in the picture to take advantage of that fact. For today, the Bulls need to overcome the levels of 6065 to maintain their upwards momentum whereas the Bears need to breach the levels of 5890 to regain their lost grounds.
2) The stochastics continue to remain well and deep into the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may stall shortly. The MACD continues to rise and the histogram also continues to rise. ADX is suggesting a pause in the Bullish momentum but is still favoring the Bulls. The Parabolic SAR continues to give out a buy signal with the SL at 5716.
5) Considering the above, our trading plan for the day is as under.
a) Around 5970 we will open fresh long positions with a SL of 5950 and a target of 6020. We will add to these long positions only above 6050.
b) Around 6030 we will open fresh short positions with a SL of 6050 and a target of 5980. 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
sir
ReplyDeleteplz guide how trading plan will change due to gap down
thanks
Wait and watch the price action around 5960 5980 zone if that comes and take your position with a small stop loss.
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