Nifty gyrates within a range with volatility on the rise. Trade the ranges for now.
As suggested yesterday, we saw how the Nifty retained the bullish stance. The Nifty opened with a small positive gap of 17 points at 5972 made a high of 5988 and got sold off on the back of a sell off in the Banks and traded bearishly for almost the entire trading session making a low of 5927. However, in the last hour of the trade, the Bulls took over and the Nifty got back into the green, made a feeble attempt at crossing the highs, touched 5990, and closed at 5973, retaining the Bullish bias. Our trading plan(a) triggered in the last hour and we could make a profit of 40 points on that trade.
1) The Elder Ray readings : Bull Power rises from +77 to +89 Bear Power reduces from +22 to +26 indicating that the attempts by the Bears till now have not been effective and that the Bulls are retaining the control on the Nifty. For today, the Bulls need to overcome the levels of 6005 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5910 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone but are pointing down now.
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 increased with the rise in the Nifty indicating that the up move may continue. The MACD is now in the positive but is showing early signs of exhaustion. The histogram continues to remain in the positive. The ADX is showing preference for the up move, although indicating some loss of momentum for the Bulls. The Parabolic SAR continues with its Buy call with the SL now pegged at 5777.
5) Considering the above, our trading plan for the day is as under.
a) Around 5955 we will open fresh long positions with a SL of 5935 and a target of 5995. We will add to these long positions only above 6015.
b) Around 6005 we will open fresh short positions with a SL of 6015 and a target of 5960. We will add to these short positions only below 5935.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As suggested yesterday, we saw how the Nifty retained the bullish stance. The Nifty opened with a small positive gap of 17 points at 5972 made a high of 5988 and got sold off on the back of a sell off in the Banks and traded bearishly for almost the entire trading session making a low of 5927. However, in the last hour of the trade, the Bulls took over and the Nifty got back into the green, made a feeble attempt at crossing the highs, touched 5990, and closed at 5973, retaining the Bullish bias. Our trading plan(a) triggered in the last hour and we could make a profit of 40 points on that trade.
1) The Elder Ray readings : Bull Power rises from +77 to +89 Bear Power reduces from +22 to +26 indicating that the attempts by the Bears till now have not been effective and that the Bulls are retaining the control on the Nifty. For today, the Bulls need to overcome the levels of 6005 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5910 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone but are pointing down now.
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 increased with the rise in the Nifty indicating that the up move may continue. The MACD is now in the positive but is showing early signs of exhaustion. The histogram continues to remain in the positive. The ADX is showing preference for the up move, although indicating some loss of momentum for the Bulls. The Parabolic SAR continues with its Buy call with the SL now pegged at 5777.
5) Considering the above, our trading plan for the day is as under.
a) Around 5955 we will open fresh long positions with a SL of 5935 and a target of 5995. We will add to these long positions only above 6015.
b) Around 6005 we will open fresh short positions with a SL of 6015 and a target of 5960. We will add to these short positions only below 5935.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir
ReplyDeleteis this the right time to initiate shorts
as nifty is above 6000 levels
or we should wait
Trading plan (b) has already triggered. And yes, it was the right time to short the Nifty with a small SL of 10 to 15 points.
DeleteTrading plan (b) has triggered. Opened fresh short positions at 6003 with a SL of 6015
ReplyDeletesir
ReplyDeletenifty sustaining above 6000
can we create longs at this point
It is too late in the day for any intraday trades to be initiated.
DeleteAlso 6015 has not been breached yet.
Going long could be risky.
However, one can open a long position if intended to carry forward for tomorrow.
Nifty uptrend is intact as of now.
Booked 30 points on long taken at 6015 and squared off at 6045.
ReplyDeleteEarlier had booked 20 points on shorts taken in morning at 6003 and squared off at 5983.