Nifty forms a hanging man in the supply zone. Expect a volatile session today.
As discussed on Friday, we expected the global rally to power the Nifty, and that is exactly what happened. The Nifty opened with a hefty positive gap up of 84 points at 6105 and traded bullish for the entire trading session. The first hour low of 6046 was quickly bought into and the Nifty regained its highs late in the evening making a high of 6108 before closing at 6096 with a gain of 75 points. We took a trade on the short side and booked out with a minor loss of 10 points.
1) The Elder Ray readings : Bull Power rises from +128 to +174 Bear Power reduces from +74 to +113 indicating that the Bulls are in full control and that the Bears have their work cut out. For today, the Bulls need to overcome the levels of 6135 to maintain their upwards momentum whereas the Bears need to breach the levels of 5955 to regain their lost grounds.
2) The stochastics are now in the overbought zone and are still pointing upwards.
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 increased with the rise in the Nifty indicating that the up move may continue. However, the Nifty has formed a hanging man which will keep the Bears in the reckoning. The MACD has given a positive signal with the histogram also rising above the zero line. The ADX is also signalling a rise in the Bullish momentum. The ADX is also giving out its buy signal with the SL now raised to 5724.
5) Considering the above, our trading plan for the day is as under.
a) Around 6045 we will open fresh long positions with a SL of 6020 and a target of 6130. We will add to these long positions only above 6175.
b) Around 6155 we will open fresh short positions with a SL of 6175 and a target of 6055. We will add to these short positions only below 6020.
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 on Friday, we expected the global rally to power the Nifty, and that is exactly what happened. The Nifty opened with a hefty positive gap up of 84 points at 6105 and traded bullish for the entire trading session. The first hour low of 6046 was quickly bought into and the Nifty regained its highs late in the evening making a high of 6108 before closing at 6096 with a gain of 75 points. We took a trade on the short side and booked out with a minor loss of 10 points.
1) The Elder Ray readings : Bull Power rises from +128 to +174 Bear Power reduces from +74 to +113 indicating that the Bulls are in full control and that the Bears have their work cut out. For today, the Bulls need to overcome the levels of 6135 to maintain their upwards momentum whereas the Bears need to breach the levels of 5955 to regain their lost grounds.
2) The stochastics are now in the overbought zone and are still pointing upwards.
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 increased with the rise in the Nifty indicating that the up move may continue. However, the Nifty has formed a hanging man which will keep the Bears in the reckoning. The MACD has given a positive signal with the histogram also rising above the zero line. The ADX is also signalling a rise in the Bullish momentum. The ADX is also giving out its buy signal with the SL now raised to 5724.
5) Considering the above, our trading plan for the day is as under.
a) Around 6045 we will open fresh long positions with a SL of 6020 and a target of 6130. We will add to these long positions only above 6175.
b) Around 6155 we will open fresh short positions with a SL of 6175 and a target of 6055. We will add to these short positions only below 6020.
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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