Nifty remains directionless after a narrow range expiry session. Watch today's close.
As discussed yesterday, Nifty was in equilibrium on expiry day. The Nifty opened flat, traded flat in a narrow range of 48 points for the entire trading session before ending the day and the series at a flattish note. The same mood carries forward and the next direction may emerge by the end of day today. None of our trading plans got triggered yesterday and we were happy to sit on the side lines.
1) The Elder Ray readings : Bull Power rises from +62 to +64 Bear Power reduces from -38 to +10 indicating that the Bears surrendered their advantage within one trading session. For today, the Bulls need to overcome the levels of 5925 to maintain their upwards momentum whereas the Bears need to breach the levels of 5855 to regain their lost grounds.
2) The stochastics are in the neutral zone and are pointing flattish.
3) The Nifty has yet again closed below its 8EMA but has closed above its 13EMA and 21EMA. The Nifty has also closed above all its key DMAs.
4) In the above chart, the volumes have increased with the Nifty remaining flat indicating rising indecision amongst traders. The MACD continues with its attempted short signal, but stops short of signaling the same. The ADX is also suggesting a loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6123.
5) Considering the above, our trading plan for the day is as under.
a) Around 5960 we will open fresh short positions with a SL of 5985 and a target of 5830. We will add to these short positions only below 5780.
b) Around 5810 we will open fresh long positions with a SL of 5780 and a target of 5935. We will add to these long positions only above 5985
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 was in equilibrium on expiry day. The Nifty opened flat, traded flat in a narrow range of 48 points for the entire trading session before ending the day and the series at a flattish note. The same mood carries forward and the next direction may emerge by the end of day today. None of our trading plans got triggered yesterday and we were happy to sit on the side lines.
1) The Elder Ray readings : Bull Power rises from +62 to +64 Bear Power reduces from -38 to +10 indicating that the Bears surrendered their advantage within one trading session. For today, the Bulls need to overcome the levels of 5925 to maintain their upwards momentum whereas the Bears need to breach the levels of 5855 to regain their lost grounds.
2) The stochastics are in the neutral zone and are pointing flattish.
3) The Nifty has yet again closed below its 8EMA but has closed above its 13EMA and 21EMA. The Nifty has also closed above all its key DMAs.
4) In the above chart, the volumes have increased with the Nifty remaining flat indicating rising indecision amongst traders. The MACD continues with its attempted short signal, but stops short of signaling the same. The ADX is also suggesting a loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6123.
5) Considering the above, our trading plan for the day is as under.
a) Around 5960 we will open fresh short positions with a SL of 5985 and a target of 5830. We will add to these short positions only below 5780.
b) Around 5810 we will open fresh long positions with a SL of 5780 and a target of 5935. We will add to these long positions only above 5985
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Part B of trading plan (a) has triggered and have opened fresh short position at 5780 with a SL of 5815
ReplyDelete