Nifty pauses at a critical juncture with both sides having a stake. Crucial EOD today.
As discussed yesterday, "Bulls needed to follow up", however, their follow up lacked the strength and the depth. Having said that, the Bulls also successfully defended the Nifty from the intermittent Bear attacks during the day. As such it turned out to be a NR7 day and a big move on either side can be expected today or tomorrow. We did not participate in the trade yesterday, as the Nifty gyrated in a narrow range of 32 points between 6180 on the lower side and 6212 on the higher side.
1) The Elder Ray readings : Bull Power rises from +65 to +71 Bear Power reduces from -21 to +38 indicating that the Bears have just lost their footing and unless they are active quickly, they will lose this one. For today, the Bulls need to overcome the levels of 6225 to maintain their upwards momentum whereas the Bears need to breach the levels of 6150 to regain their lost grounds.
2) The stochastics are right in the middle of the neutral zone and are pointing upwards.
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 remained stagnant with the Nifty also remaining stagnant, indicating indecision amongst the traders. The MACD continues to point downwards, but the histogram is growing but is still in the negative. The ADX is showing equilibrium for any direction. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6230.
5) Considering the above, our trading plan for the day is as under.
a) Around 6160, we will open fresh long positions with a SL of 6140 and a target of 6210. We will add to these long positions only above 6245.
b) Around 6225, we will open fresh short positions with a SL of 6245 and a target of 6175. We will add to these short positions only below 6140.
Happy Trading !!!
Buy calls on IFGLREFRAC SHALPAINTS and Sell call on KARURVYSYA hit their targets on 19 Nov 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, "Bulls needed to follow up", however, their follow up lacked the strength and the depth. Having said that, the Bulls also successfully defended the Nifty from the intermittent Bear attacks during the day. As such it turned out to be a NR7 day and a big move on either side can be expected today or tomorrow. We did not participate in the trade yesterday, as the Nifty gyrated in a narrow range of 32 points between 6180 on the lower side and 6212 on the higher side.
1) The Elder Ray readings : Bull Power rises from +65 to +71 Bear Power reduces from -21 to +38 indicating that the Bears have just lost their footing and unless they are active quickly, they will lose this one. For today, the Bulls need to overcome the levels of 6225 to maintain their upwards momentum whereas the Bears need to breach the levels of 6150 to regain their lost grounds.
2) The stochastics are right in the middle of the neutral zone and are pointing upwards.
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 remained stagnant with the Nifty also remaining stagnant, indicating indecision amongst the traders. The MACD continues to point downwards, but the histogram is growing but is still in the negative. The ADX is showing equilibrium for any direction. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6230.
5) Considering the above, our trading plan for the day is as under.
a) Around 6160, we will open fresh long positions with a SL of 6140 and a target of 6210. We will add to these long positions only above 6245.
b) Around 6225, we will open fresh short positions with a SL of 6245 and a target of 6175. We will add to these short positions only below 6140.
Happy Trading !!!
Buy calls on IFGLREFRAC SHALPAINTS and Sell call on KARURVYSYA hit their targets on 19 Nov 2013
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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