Nifty gaps up and sustains. Follow up buying lacking. Dull session may be ahead.
Till yesterday, the Nifty was maintaining a volatile equilibrium. That equilibrium was shattered by yesterday's opening which was with a whopping positive gap of 106 points. The Nifty rushed higher immediately after opening and crossed the levels of 5600 to make a quick high of 5626 in the first few minutes of trade. But lack of follow up buying saw the Nifty trade within a confine range of 70 80 points post that for the entire trading session. The Nifty finally closed at 5593 with a gain of 145 points. We did not take any trade as the range was out of our bounds.
1) The Elder Ray readings : Bull Power rises from +10 to +155 Bear Power reduces from -132 to +82 indicating that the Bears have now lost their footing and the Bulls are clearly in the driver's seat. For today, the Bulls need to overcome the levels of 5650 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5480 to regain their lost grounds.
2) The fast stochastics are already in the overbought zone, but the slow stochastics are still in the neutral zone, indicating room for an up move.
3) The Nifty has closed above all its key EMAs but has closed 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 pointing upwards from the negative, the histogram is growing in the positive. The ADX is also suggesting a rise in the upwards momentum. The Parabolic SAR continues with its buy signal with the SL now shifted up to 5165.
5) Considering the above, our trading plan for the day is as under.
a) Around 5550 we will open fresh long positions with a SL of 5530 and a target of 5610. We will add to these long positions only above 5650.
b) Around 5635 we will open fresh short positions with a SL of 5650 and a target of 5560. We will add to these short positions only below 5530.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Till yesterday, the Nifty was maintaining a volatile equilibrium. That equilibrium was shattered by yesterday's opening which was with a whopping positive gap of 106 points. The Nifty rushed higher immediately after opening and crossed the levels of 5600 to make a quick high of 5626 in the first few minutes of trade. But lack of follow up buying saw the Nifty trade within a confine range of 70 80 points post that for the entire trading session. The Nifty finally closed at 5593 with a gain of 145 points. We did not take any trade as the range was out of our bounds.
1) The Elder Ray readings : Bull Power rises from +10 to +155 Bear Power reduces from -132 to +82 indicating that the Bears have now lost their footing and the Bulls are clearly in the driver's seat. For today, the Bulls need to overcome the levels of 5650 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5480 to regain their lost grounds.
2) The fast stochastics are already in the overbought zone, but the slow stochastics are still in the neutral zone, indicating room for an up move.
3) The Nifty has closed above all its key EMAs but has closed 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 pointing upwards from the negative, the histogram is growing in the positive. The ADX is also suggesting a rise in the upwards momentum. The Parabolic SAR continues with its buy signal with the SL now shifted up to 5165.
5) Considering the above, our trading plan for the day is as under.
a) Around 5550 we will open fresh long positions with a SL of 5530 and a target of 5610. We will add to these long positions only above 5650.
b) Around 5635 we will open fresh short positions with a SL of 5650 and a target of 5560. We will add to these short positions only below 5530.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh short position at 5632 with a SL of 5655
ReplyDeleteSL Hit at 5655 booked a loss of 23 points.
ReplyDelete