Bulls need to defend 5300, take out 5500 to maintain momentum. Sell on rise till then.
As discussed on Friday, we expected the "Bears to play their hand". The bearish move happened when the Nifty in the afternoon session, sold off from the levels of 5470 to 5360 losing 110 points in a matter of an hour. However, that was not the end of story, as the Bulls then took over and swept the Nifty past 5470 yet again in the last hour of trade to make a high of 5493 before closing at 5472. Earlier, the Nifty had opened flat at 5407. We took one trade on the short side and booked out with a loss of 21 points as our SL got hit.
1) The Elder Ray readings : Bull Power rises from -24 to +38 Bear Power reduces from -150 to -95 indicating that the Bulls have regained their territory, but the Bears are not to be counted out as yet. For today, the Bulls need to overcome the levels of 5500 to maintain their upwards momentum whereas the Bears need to breach the levels of 5360 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing upwards.
3) The Nifty has closed above its 8EMA(5417) and its 13EMA(5456) but has closed below its 21EMA and also below 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 again attempting a breakout signal, with the histogram too turning just above the zero line. The ADX is also showing a small favor to the Bulls. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5493.
5) Considering the above, our trading plan for the day is as under.
a) Around 5380, we will open fresh long positions with a SL of 5355 and a target of 5500. We will add to these long positions only above 5545.
b) Around 5525, we will open fresh short positions with a SL of 5545 and a target of 5400. We will add to these short positions only below 5355.
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, we expected the "Bears to play their hand". The bearish move happened when the Nifty in the afternoon session, sold off from the levels of 5470 to 5360 losing 110 points in a matter of an hour. However, that was not the end of story, as the Bulls then took over and swept the Nifty past 5470 yet again in the last hour of trade to make a high of 5493 before closing at 5472. Earlier, the Nifty had opened flat at 5407. We took one trade on the short side and booked out with a loss of 21 points as our SL got hit.
1) The Elder Ray readings : Bull Power rises from -24 to +38 Bear Power reduces from -150 to -95 indicating that the Bulls have regained their territory, but the Bears are not to be counted out as yet. For today, the Bulls need to overcome the levels of 5500 to maintain their upwards momentum whereas the Bears need to breach the levels of 5360 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing upwards.
3) The Nifty has closed above its 8EMA(5417) and its 13EMA(5456) but has closed below its 21EMA and also below 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 again attempting a breakout signal, with the histogram too turning just above the zero line. The ADX is also showing a small favor to the Bulls. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5493.
5) Considering the above, our trading plan for the day is as under.
a) Around 5380, we will open fresh long positions with a SL of 5355 and a target of 5500. We will add to these long positions only above 5545.
b) Around 5525, we will open fresh short positions with a SL of 5545 and a target of 5400. We will add to these short positions only below 5355.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan(b) has triggered.
ReplyDeleteOpened fresh short position at 5524 with a SL of 5554
Booked out with a 30 point loss at 5554
ReplyDeleteBought Nifty @5494 sold at 5548
ReplyDeleteAgain Sold Nifty @ 5563 Covered shorts at 5536 and 5553
-HC