Overbought markets seem to be near topping out. Caution in long positions required.
As discussed on Friday, we got a Bullish start to a fresh series. The Nifty opened with a minor gap down of 9 points at 6290 and made a quick low of 6287 and swiftly climbed above 6300 to make a high of 6333 before closing at 6307. During the truncated special trading session on Sunday, the Nifty remained bullish making a all time high of 6343 before closing at 6317.
1) The Elder Ray readings : Bull Power reduces from +149 to +142 Bear Power also reduces from +76 to +110 indicating that the Bears are having their backs to the wall and the Bulls are merrily controlling the Nifty movements. For today, the Bulls need to overcome the levels of 6365 to maintain their upwards momentum whereas the Bears need to breach the levels of 6220 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
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 rise in the Nifty indicating that the rise may get arrested. The MACD continues to be positive with the histogram also remaining positive. The ADX is suggesting a topping out for the Bulls and the Bears hitting the rock bottom. The Parabolic SAR continues to give out its Buy signal with the SL now raised to 6109.
5) Considering the above, our trading plan for the day is as under.
a) Around 6275 we will open fresh long positions with a SL of 6250 and a target of 6340. We will add to these long positions only above 6385.
b) Around 6365 we will open fresh short positions with a SL of 6385 and a target of 6280. We will add to these short positions only below 6250.
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 got a Bullish start to a fresh series. The Nifty opened with a minor gap down of 9 points at 6290 and made a quick low of 6287 and swiftly climbed above 6300 to make a high of 6333 before closing at 6307. During the truncated special trading session on Sunday, the Nifty remained bullish making a all time high of 6343 before closing at 6317.
1) The Elder Ray readings : Bull Power reduces from +149 to +142 Bear Power also reduces from +76 to +110 indicating that the Bears are having their backs to the wall and the Bulls are merrily controlling the Nifty movements. For today, the Bulls need to overcome the levels of 6365 to maintain their upwards momentum whereas the Bears need to breach the levels of 6220 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
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 rise in the Nifty indicating that the rise may get arrested. The MACD continues to be positive with the histogram also remaining positive. The ADX is suggesting a topping out for the Bulls and the Bears hitting the rock bottom. The Parabolic SAR continues to give out its Buy signal with the SL now raised to 6109.
5) Considering the above, our trading plan for the day is as under.
a) Around 6275 we will open fresh long positions with a SL of 6250 and a target of 6340. We will add to these long positions only above 6385.
b) Around 6365 we will open fresh short positions with a SL of 6385 and a target of 6280. We will add to these short positions only below 6250.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.