Nifty closes above 5500 to enter a state of bullish equilibrium. Roadblocks ahead.
As discussed yesterday, the "Bulls needed to maintain their tempo", and they did it with ease with the Nifty giving a higher low in every hour of trade yesterday. The Nifty opened positive at 5480 and maintained that level throughout the session. The Nifty made a high of 5565 late in the afternoon, before closing at 5551 with a gain of 79 points. We took a trade on the short side and booked a loss of 30 points.
1) The Elder Ray readings : Bull Power rises from +38 to +96 Bear Power reduces from -95 to +10 indicating that now the Bears have lost their grounds and that the Bulls are in the driving seat. For today, the Bulls need to overcome the levels of 5585 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5480 to regain their lost grounds.
2) The stochastics are yet in the neutral zone and are pointing upwards.
3) The Nifty has now closed above all its key EMAs but has closed below all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may falter going ahead. The MACD has given a reversal signal from the negative with the histogram also growing in the positive. The ADX is suggesting a favor towards the Bulls but is suggesting lowering of the overall momentum. The Parabolic SAR has turned into a buy signal with a initial SL of 5119.
5) Considering the above, our trading plan for the day is as under.
a) Around 5500 we will open fresh long positions with a SL of 5480 and a target of 5570. We will add to these long positions only above 5600.
b) Around 5585 we will open fresh short positions with a SL of 5600 and a target of 5510. We will add to these short positions only below 5480.
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 "Bulls needed to maintain their tempo", and they did it with ease with the Nifty giving a higher low in every hour of trade yesterday. The Nifty opened positive at 5480 and maintained that level throughout the session. The Nifty made a high of 5565 late in the afternoon, before closing at 5551 with a gain of 79 points. We took a trade on the short side and booked a loss of 30 points.
1) The Elder Ray readings : Bull Power rises from +38 to +96 Bear Power reduces from -95 to +10 indicating that now the Bears have lost their grounds and that the Bulls are in the driving seat. For today, the Bulls need to overcome the levels of 5585 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5480 to regain their lost grounds.
2) The stochastics are yet in the neutral zone and are pointing upwards.
3) The Nifty has now closed above all its key EMAs but has closed below all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may falter going ahead. The MACD has given a reversal signal from the negative with the histogram also growing in the positive. The ADX is suggesting a favor towards the Bulls but is suggesting lowering of the overall momentum. The Parabolic SAR has turned into a buy signal with a initial SL of 5119.
5) Considering the above, our trading plan for the day is as under.
a) Around 5500 we will open fresh long positions with a SL of 5480 and a target of 5570. We will add to these long positions only above 5600.
b) Around 5585 we will open fresh short positions with a SL of 5600 and a target of 5510. We will add to these short positions only below 5480.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
opened long position in NF at 5495 as per your trading plan a)
ReplyDeletelong at 5500, SL 5480
ReplyDelete-HC
Opened short positions as Nifty breaches 5480.
ReplyDeleteSL at 5505
exited long NF at 5470
ReplyDeleteBooked out of short positions at 5425 with a profit of 55 points
ReplyDelete