Nifty tests support levels and bounces back. Volatility on the rise. Trade the range.
As discussed yesterday, we saw volatility on the rise on the Nifty. The Nifty opened again with a 18 point negative gap at 5889 and then traded bearishly for the first half of the trading session, making a low of 5826, from where the buying set in and the Nifty surged to 5880 where it strolled for about an hour or so and then the Bulls took over and took the Nifty past 5900 to make a intraday high of 5911 before closing at 5906 with a minor loss of 1 point. We took a trade on the long side and could book a profit of 40 points on that trade.
1) The Elder Ray readings : Bull Power reduces from +102 to +55 Bear Power rises from +37 to -31 indicating that the Nifty is in equilibrium. For today, the Bulls need to overcome the levels of 5920 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5825 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone and are still pointing horizontally flat.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the Nifty remaining flat indicating indecision amongst the traders. The MACD continues to point horizontal with the histogram continuing to be in the negative. The ADX is suggesting a mild favor for the Bears. The Parabolic SAR continues to give out its sell signal with the SL now at 5989.
5) Considering the above, our trading plan for the day is as under.
a) Around 5975 we will open fresh short positions with a SL of 5995 and a target of 5860. We will add to these short positions only below 5815.
b) Around 5840 we will open fresh long positions with a SL of 5815 and a target of 5950. We will add to these long positions only above 5995.
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, we saw volatility on the rise on the Nifty. The Nifty opened again with a 18 point negative gap at 5889 and then traded bearishly for the first half of the trading session, making a low of 5826, from where the buying set in and the Nifty surged to 5880 where it strolled for about an hour or so and then the Bulls took over and took the Nifty past 5900 to make a intraday high of 5911 before closing at 5906 with a minor loss of 1 point. We took a trade on the long side and could book a profit of 40 points on that trade.
1) The Elder Ray readings : Bull Power reduces from +102 to +55 Bear Power rises from +37 to -31 indicating that the Nifty is in equilibrium. For today, the Bulls need to overcome the levels of 5920 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5825 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone and are still pointing horizontally flat.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the Nifty remaining flat indicating indecision amongst the traders. The MACD continues to point horizontal with the histogram continuing to be in the negative. The ADX is suggesting a mild favor for the Bears. The Parabolic SAR continues to give out its sell signal with the SL now at 5989.
5) Considering the above, our trading plan for the day is as under.
a) Around 5975 we will open fresh short positions with a SL of 5995 and a target of 5860. We will add to these short positions only below 5815.
b) Around 5840 we will open fresh long positions with a SL of 5815 and a target of 5950. We will add to these long positions only above 5995.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir can you give me daily news letter & free tips my mail id is damodharbatheja@gmail.com thanks
ReplyDeleteTrading plan(b) has triggered. Opened fresh intraday short position at 5975 with a SL of 5995
ReplyDeleteTSL put at 5940 assuring a profit of 35 points at least
ReplyDeleteTSL hit at 5940. Booked a profit of 35 points.
ReplyDelete