Nifty undergoes intraday consolidation. Bulls need a final thrust for more upsides.
As discussed yesterday, the Bulls did turn the tide in their favor. The Nifty opened with a positive gap of 13 points at 6202 and then saw some profit booking and traded within a confined range of 55 points making a intraday low of 6163 and closing positive with a gain of 16 points at 6205. The Nifty continued to maintain its bullish stance thus. None of our trading plans got triggered and we preferred to wait for our chance.
1) The Elder Ray readings : Bull Power reduces from +185 to +176 Bear Power also reduces from +55 to +120 indicating that this profit booking has weakened the Bears further while making only a marginal dent to the Bulls. For today, the Bulls need to overcome the levels of 6250 to maintain their upwards momentum whereas the Bears need to breach the levels of 6080 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone and are still pointing horizontal.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart volumes have decreased with the rise in the Nifty indicating that the up move may stall. The MACD continues to remain positive with the histogram also remaining above zero. The ADX is suggesting a stalling of the Bullish momentum but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 5900.
5) Considering the above, our trading plan for the day is as under.
a) Around 6155 we will open fresh long positions with a SL of 6130 and a target of 6230. We will add to these long positions only above 6280.
b) Around 6255 we will open fresh short positions with a SL of 6280 and a target of 6160. We will add to these short positions only below 6130.
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 Bulls did turn the tide in their favor. The Nifty opened with a positive gap of 13 points at 6202 and then saw some profit booking and traded within a confined range of 55 points making a intraday low of 6163 and closing positive with a gain of 16 points at 6205. The Nifty continued to maintain its bullish stance thus. None of our trading plans got triggered and we preferred to wait for our chance.
1) The Elder Ray readings : Bull Power reduces from +185 to +176 Bear Power also reduces from +55 to +120 indicating that this profit booking has weakened the Bears further while making only a marginal dent to the Bulls. For today, the Bulls need to overcome the levels of 6250 to maintain their upwards momentum whereas the Bears need to breach the levels of 6080 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone and are still pointing horizontal.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart volumes have decreased with the rise in the Nifty indicating that the up move may stall. The MACD continues to remain positive with the histogram also remaining above zero. The ADX is suggesting a stalling of the Bullish momentum but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 5900.
5) Considering the above, our trading plan for the day is as under.
a) Around 6155 we will open fresh long positions with a SL of 6130 and a target of 6230. We will add to these long positions only above 6280.
b) Around 6255 we will open fresh short positions with a SL of 6280 and a target of 6160. We will add to these short positions only below 6130.
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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