Bulls take charge of the Nifty but global cues are against them to start with today.
As discussed yesterday, the Nifty looked Bearish despite the recovery that started day before yesterday. However, the Bulls had other ideas. The Nifty opened with a positive gap of 39 points at 5819 made a quick low of 5803 and then swiftly went above and sustained the opening gap throughout the trading session. The Nifty made a high of 5918 before closing emphatically near the highs at 5910 with a whopping gain of 130 points. We entered into a short trade and were stopped out with a loss of 38 points.
1) The Elder Ray readings : Bull Power rises from -40 to +79 Bear Power reduces from -126 to -36 indicating that the Bulls have not only regained their safe zone, they are in the driver's seat as of now. However, the Bears are still not out of the reckoning. For today, the Bulls need to overcome the levels of 5930 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5795 to maintain their downwards momentum.
2) The stochastics are looking up just after touching the top of the oversold zone.
3) The Nifty has now closed 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 should continue. The MACD is still showing negative direction with the histogram too remaining in the negative. The ADX is showing convergence of all three indicators, indicating a certain equilibrium on the Nifty. The Parabolic SAR continues with its sell signal with the SL now brought down to 6041.
5) Considering the above, our trading plan for the day is as under.
a) Around 5845 we will open fresh long positions with a SL of 5815 and a target of 5945. We will add to these long positions only above 5975.
b) Around 5955 we will open fresh short positions with a SL of 5975 and a target of 5870. We will add to these short positions only below 5815.
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 Nifty looked Bearish despite the recovery that started day before yesterday. However, the Bulls had other ideas. The Nifty opened with a positive gap of 39 points at 5819 made a quick low of 5803 and then swiftly went above and sustained the opening gap throughout the trading session. The Nifty made a high of 5918 before closing emphatically near the highs at 5910 with a whopping gain of 130 points. We entered into a short trade and were stopped out with a loss of 38 points.
1) The Elder Ray readings : Bull Power rises from -40 to +79 Bear Power reduces from -126 to -36 indicating that the Bulls have not only regained their safe zone, they are in the driver's seat as of now. However, the Bears are still not out of the reckoning. For today, the Bulls need to overcome the levels of 5930 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5795 to maintain their downwards momentum.
2) The stochastics are looking up just after touching the top of the oversold zone.
3) The Nifty has now closed 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 should continue. The MACD is still showing negative direction with the histogram too remaining in the negative. The ADX is showing convergence of all three indicators, indicating a certain equilibrium on the Nifty. The Parabolic SAR continues with its sell signal with the SL now brought down to 6041.
5) Considering the above, our trading plan for the day is as under.
a) Around 5845 we will open fresh long positions with a SL of 5815 and a target of 5945. We will add to these long positions only above 5975.
b) Around 5955 we will open fresh short positions with a SL of 5975 and a target of 5870. We will add to these short positions only below 5815.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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