After initial blushes, Nifty soars to recover losses of last two days. Neutral as of now.
As discussed yesterday, Bears had regained their footing, however, after a RBI policy that was already priced in by the market, the Bulls took over the Nifty and the Nifty soared back to near its highs which were in place a few days ago. The Nifty opened with a mild positive gap of 6 points at 6108 and then traded bearishly for the first couple of hours and breached yesterday's lows and made a low at 6082 before recovering the fall from the day's high of 6118 till then. In the mayhem post the announcement of the RBI policy, the Nifty made a low of 6079 and then started its march upwards. The Nifty then never looked back and finally closed at 6221 after making a intraday high of 6228. We took a trade as per our trading plan, however booked a loss of 25 points as the SL got hit.
1) The Elder Ray readings : Bull Power rises from +68 to +110 Bear Power also rises from -7 to -39 indicating that the Nifty has no clear driver as we approach expiry within a couple of trading sessions. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum whereas the Bears need to breach the levels of 6130 to maintain their downwards momentum.
2) The stochastics are back into the overbought zone.
3) The Nifty has 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 may continue. The MACD continues to point horizontal but the histogram is still negative. The ADX is suggesting a equilibrium amongst the Bulls and the Bears. The Parabolic SAR has turned into a Sell signal with a SL of 6252.
5) Considering the above, our trading plan for the day is as under.
a) Around 6235 we will open fresh short positions with a SL of 6255 and a target of 6165. We will add to these short positions only below 6145.
b) Around 6160 we will open fresh long positions with a SL of 6145 and a target of 6220. We will add to these long positions only above 6255.
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, Bears had regained their footing, however, after a RBI policy that was already priced in by the market, the Bulls took over the Nifty and the Nifty soared back to near its highs which were in place a few days ago. The Nifty opened with a mild positive gap of 6 points at 6108 and then traded bearishly for the first couple of hours and breached yesterday's lows and made a low at 6082 before recovering the fall from the day's high of 6118 till then. In the mayhem post the announcement of the RBI policy, the Nifty made a low of 6079 and then started its march upwards. The Nifty then never looked back and finally closed at 6221 after making a intraday high of 6228. We took a trade as per our trading plan, however booked a loss of 25 points as the SL got hit.
1) The Elder Ray readings : Bull Power rises from +68 to +110 Bear Power also rises from -7 to -39 indicating that the Nifty has no clear driver as we approach expiry within a couple of trading sessions. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum whereas the Bears need to breach the levels of 6130 to maintain their downwards momentum.
2) The stochastics are back into the overbought zone.
3) The Nifty has 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 may continue. The MACD continues to point horizontal but the histogram is still negative. The ADX is suggesting a equilibrium amongst the Bulls and the Bears. The Parabolic SAR has turned into a Sell signal with a SL of 6252.
5) Considering the above, our trading plan for the day is as under.
a) Around 6235 we will open fresh short positions with a SL of 6255 and a target of 6165. We will add to these short positions only below 6145.
b) Around 6160 we will open fresh long positions with a SL of 6145 and a target of 6220. We will add to these long positions only above 6255.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan(a) has triggered now and have opened fresh short position at 6235 with SL of 6255
ReplyDeleteBooked out at 6255 with 20 points loss
ReplyDelete