Nifty consolidates for last two trading sessions. Decisive move may be coming soon.
As discussed yesterday, the "Drifting consolidation continued" on the Nifty. The Nifty opened with a 26 points negative gap down at 6307 and then traded within a narrow band of 25 points but stayed above 6260, for most of the trading session. The Nifty made a low of 6280. In the last 30 minutes of trade, the Nifty rose to shackle the day's highs and touched a intraday high of 6327, before closing at 6308. We took a trade on the long side and could book out at EOD with a profit of 30 points on that trade.
1) The Elder Ray readings : Bull Power reduces from +148 to +99 Bear Power rises from +93 to +53 indicating that the Bulls are still well in control of the Nifty and the Bears have a much larger task cut out for them. For today, the Bulls need to overcome the levels of 6340 to maintain their upwards momentum whereas the Bears need to breach the levels of 6245 to regain their lost grounds.
2) The stochastics are still 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 fall in the Nifty indicating that the fall may get arrested. The MACD continues to point upwards with the histogram remaining in the positive but reducing slightly. The ADX is suggesting a equilibrium for the Bulls and the Bears. The Parabolic SAR continues its buy signal with the SL now shifted up to 6064.
5) Considering the above, our trading plan for the day is as under.
a) Around 6265 we will open fresh long positions with a SL of 6240 and a target of 6340. We will add to these long positions only above 6375.
b) Around 6355 we will open fresh short positions with a SL of 6375 and a target of 6280. We will add to these short positions only below 6240.
Happy Trading !!!
Buy call given on SASKEN hit its target on 11 Dec 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, the "Drifting consolidation continued" on the Nifty. The Nifty opened with a 26 points negative gap down at 6307 and then traded within a narrow band of 25 points but stayed above 6260, for most of the trading session. The Nifty made a low of 6280. In the last 30 minutes of trade, the Nifty rose to shackle the day's highs and touched a intraday high of 6327, before closing at 6308. We took a trade on the long side and could book out at EOD with a profit of 30 points on that trade.
1) The Elder Ray readings : Bull Power reduces from +148 to +99 Bear Power rises from +93 to +53 indicating that the Bulls are still well in control of the Nifty and the Bears have a much larger task cut out for them. For today, the Bulls need to overcome the levels of 6340 to maintain their upwards momentum whereas the Bears need to breach the levels of 6245 to regain their lost grounds.
2) The stochastics are still 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 fall in the Nifty indicating that the fall may get arrested. The MACD continues to point upwards with the histogram remaining in the positive but reducing slightly. The ADX is suggesting a equilibrium for the Bulls and the Bears. The Parabolic SAR continues its buy signal with the SL now shifted up to 6064.
5) Considering the above, our trading plan for the day is as under.
a) Around 6265 we will open fresh long positions with a SL of 6240 and a target of 6340. We will add to these long positions only above 6375.
b) Around 6355 we will open fresh short positions with a SL of 6375 and a target of 6280. We will add to these short positions only below 6240.
Happy Trading !!!
Buy call given on SASKEN hit its target on 11 Dec 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh long position at 6272 with a SL of 6242 as per trading plan (a)
ReplyDeleteBooked loss of 30 points as SL hit
ReplyDelete