Post a couple of volatile sessions, the Nifty is expected to be range-bound.
As discussed on Monday, the Nifty remained volatile for the next couple of trading sessions in a 100 point range between 6156 and 6056. On Tuesday, the Nifty closed with a loss of 24 points at 6089, which is almost the mid point of the above range. We took a trading holiday on Tuesday.
1) The Elder Ray readings : Bull Power rises from +165 to +179 Bear Power also rises from +124 to +79 indicating that the Nifty is undergoing a major tussle between the Bulls and the Bears. For today, the Bulls need to overcome the levels of 6175 to maintain their upwards momentum whereas the Bears need to breach the levels of 5985 to regain their lost grounds.
2) The stochastics are in the overbought zone and have just given a negative signal.
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 fall in the Nifty indicating that the down move may continue. The MACD continues to point horizontal with a positive bias as the histogram continues to remain positive. The ADX is suggesting a flattening of the Bullish momentum but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 5780.
5) Considering the above, our trading plan for the day is as under.
a) Around 6130 we will open fresh short positions with a SL of 6160 and a target of 6035. We will add to these short positions only below 6015.
b) Around 6030 we will open fresh long positions with a SL of 6015 and a target of 6115. We will add to these long positions only above 6160.
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 Monday, the Nifty remained volatile for the next couple of trading sessions in a 100 point range between 6156 and 6056. On Tuesday, the Nifty closed with a loss of 24 points at 6089, which is almost the mid point of the above range. We took a trading holiday on Tuesday.
1) The Elder Ray readings : Bull Power rises from +165 to +179 Bear Power also rises from +124 to +79 indicating that the Nifty is undergoing a major tussle between the Bulls and the Bears. For today, the Bulls need to overcome the levels of 6175 to maintain their upwards momentum whereas the Bears need to breach the levels of 5985 to regain their lost grounds.
2) The stochastics are in the overbought zone and have just given a negative signal.
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 fall in the Nifty indicating that the down move may continue. The MACD continues to point horizontal with a positive bias as the histogram continues to remain positive. The ADX is suggesting a flattening of the Bullish momentum but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 5780.
5) Considering the above, our trading plan for the day is as under.
a) Around 6130 we will open fresh short positions with a SL of 6160 and a target of 6035. We will add to these short positions only below 6015.
b) Around 6030 we will open fresh long positions with a SL of 6015 and a target of 6115. We will add to these long positions only above 6160.
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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