Nifty - 25 Jan 2013 - Volatile week end

As Nifty holds key supports and Bears get some momentum, volatility may rise.

As discussed yesterday, Bulls needed to follow up on their buying spree. However, the Nifty opened with a minor negative gap down, then hurried to fill the gap but met resistance at 6065 and got sold off heavily to breach the 6010 levels before finally closing for the day at 6019, with a loss of 35 points. Our trading plan (a) triggered, did not meet either the SL or the targets, but we were able to scrape a profit of 55 points on two lots traded.

1) The Elder Ray readings : Bull Power reduces from +47 to +43 Bear Power rises from -1 to -14 indicating that with both the Bulls and the Bears in their own territory, volatility may rise now. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the levels of 6005 to maintain their downwards momentum.

2) The Nifty has closed below its 8EMA and 13EMA, however it has closed above the 21EMA and also above all its key DMAs. Moreover, the EMAs are seen dipping but not stacked inversely yet, indicating that the Bulls may have lost momentum but cannot be counted out as yet.

3) The stochastics are now right in the center of the neutral zone and are pointing downwards.

 

4) In the chart above, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD is still horizontal but has turned negative now. The ADX is suggesting a rise in the downward momentum and a fall in the upwards momentum but suggests that both Bulls and Bears are in equilibrium now. The Parabolic SAR is now giving out a sell signal with a SL of 6101.

5) Considering the above, our trading plan for the day is as under.

a) Around 6050 we will open fresh short positions with a SL of 6065 and a target of 6000. We will add to these short positions only below 5985. 

b) Around 5995 we will open fresh long positions with a SL of 5985 and a target of 6045. We will add to these long positions only above 6065.

Happy Trading !!!     

Also visit Just Nifty and the Nifty Range blogs.

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 25 Jan 2013 - Volatile week end

As Nifty holds key supports and Bears get some momentum, volatility may rise.

As discussed yesterday, Bulls needed to follow up on their buying spree. However, the Nifty opened with a minor negative gap down, then hurried to fill the gap but met resistance at 6065 and got sold off heavily to breach the 6010 levels before finally closing for the day at 6019, with a loss of 35 points. Our trading plan (a) triggered, did not meet either the SL or the targets, but we were able to scrape a profit of 55 points on two lots traded.

1) The Elder Ray readings : Bull Power reduces from +47 to +43 Bear Power rises from -1 to -14 indicating that with both the Bulls and the Bears in their own territory, volatility may rise now. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the levels of 6005 to maintain their downwards momentum.

2) The Nifty has closed below its 8EMA and 13EMA, however it has closed above the 21EMA and also above all its key DMAs. Moreover, the EMAs are seen dipping but not stacked inversely yet, indicating that the Bulls may have lost momentum but cannot be counted out as yet.

3) The stochastics are now right in the center of the neutral zone and are pointing downwards.

Nifty - 24 Jan 2013 - Bulls need to follow up

Nifty holds key support levels for now. Bulls must show some follow up action.

As discussed yesterday, the Nifty was approaching key support levels. The Nifty opened with a mild positive gap at 6053, made a high of 6070 and dipped down to test the key support levels of 6020, held the supports and closed well above them at 6054. Our trading plan(a) got triggered and we were able to book a profit of 45 points on two lots traded yesterday.

1) The Elder Ray readings : Bull Power reduces from +84 to +47 Bear Power rises from +23 to -1 indicating that if the Bulls do not act now, then the Bears, who have regained their lost ground can play havoc. For today, the Bulls need to overcome the levels of 6075 to retain their upwards momentum whereas the Bears need to breach the Nifty below 6020 to maintain their downwards momentum.

2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

3) The Stochastics are just below the overbought zone now.

 

4) In the above chart, the volumes have increased slightly with the small rise in the Nifty indicating that the rise may continue for a while. The MACD continues to point horizontal maintaining its positive bias. The ADX is also showing a loss in momentum for the Bulls but is still favoring the up move. The Parabolic SAR continues with its buy signal with a SL of 6021.

5) Considering the above, our trading plan for the day is as under.

a) Around 6030 we will open fresh long positions with a SL of 6005 and a target of 6080. We will add to these long positions only above 6100.

b) Around 6085 we will open fresh short positions with a SL of 6110 and a target of 6050. We will add to these short positions only below 6005.

Happy Trading !!!     

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 24 Jan 2013 - Bulls need to follow up

Nifty holds key support levels for now. Bulls must show some follow up action.

As discussed yesterday, the Nifty was approaching key support levels. The Nifty opened with a mild positive gap at 6053, made a high of 6070 and dipped down to test the key support levels of 6020, held the supports and closed well above them at 6054. Our trading plan(a) got triggered and we were able to book a profit of 45 points on two lots traded yesterday.

1) The Elder Ray readings : Bull Power reduces from +84 to +47 Bear Power rises from +23 to -1 indicating that if the Bulls do not act now, then the Bears, who have regained their lost ground can play havoc. For today, the Bulls need to overcome the levels of 6075 to retain their upwards momentum whereas the Bears need to breach the Nifty below 6020 to maintain their downwards momentum.

2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

3) The Stochastics are just below the overbought zone now.

Nifty - 23 Jan 2013 - Approaching key supports

Post a healthy profit booking bout, the Nifty is approaching key supports.

As discussed yesterday, the Nifty saw a steady Bull run continuing in the morning session. However, since the Nifty was not able to take out 6110, some profit booking set in and the Nifty drifted down to below the key levels of 6050 and is now approaching important support levels which should be held for this bull run to continue. Our trading plan(a) got triggered in the afternoon session, however, we booked out at the EOD with a minor loss.

1) The Elder Ray readings : Bull Power rises from +82 to +84 Bear Power also rises from +53 to +23 indicating that the Bulls have retained their upwards momentum while the Bears have still more work to do. For today, the Bulls need to overcome the levels of 6105 to maintain their upwards momentum whereas the Bears need to breach the levels of 6020 to regain their lost grounds.

2) The Nifty has yet again closed above all its key EMAs and also above all its key DMAs.

3) The stochastics are still at the overbought zone's boundary and are pointing downwards.

 

4) In the above chart, the volumes have increased slightly with the fall in the Nifty indicating that the down move may sustain. The MACD continues to point horizontal. the ADX is suggesting a fall in the bullish momentum and a rise in the bearish momentum. However, it is still favoring the up move. The Parabolic SAR continues with its buy call with the SL now pegged at 6019.

5) Considering the above, our trading plan for the day is as under

a) Around 6030 we will open fresh long positions with a SL of 6005 and a target of 6080. We will add to these long positions only above 6095.

b) Around 6085 we will open fresh short positions with a SL of 6095 and a target of 6055. We will add to these short positions only below 6005.

Happy Trading !!!      

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 23 Jan 2013 - Approaching key supports

Post a healthy profit booking bout, the Nifty is approaching key supports.

As discussed yesterday, the Nifty saw a steady Bull run continuing in the morning session. However, since the Nifty was not able to take out 6110, some profit booking set in and the Nifty drifted down to below the key levels of 6050 and is now approaching important support levels which should be held for this bull run to continue. Our trading plan(a) got triggered in the afternoon session, however, we booked out at the EOD with a minor loss.

1) The Elder Ray readings : Bull Power rises from +82 to +84 Bear Power also rises from +53 to +23 indicating that the Bulls have retained their upwards momentum while the Bears have still more work to do. For today, the Bulls need to overcome the levels of 6105 to maintain their upwards momentum whereas the Bears need to breach the levels of 6020 to regain their lost grounds.

2) The Nifty has yet again closed above all its key EMAs and also above all its key DMAs.

3) The stochastics are still at the overbought zone's boundary and are pointing downwards.

Nifty - 22 Jan 2013 - Steady Bull run continues

Nifty continues making higher highs and higher lows, slowly but steadily.

As discussed yesterday, we saw that the Bulls were still strong enough to keep the Nifty afloat, on a day when the Nifty traded in a narrow range but with a unmistakeable upward bias. The Nifty opened with a positive gap of 20 points, closed the gap during the day, made a high of 6094 and closed at 6082 with a gain of 18 points. None of our trading plans got triggered and we were happy to sit on the sidelines on this NR7 day.

1) The Elder Ray readings : Bull Power reduces from +83 to +82 Bear Power also reduces from +48 to +53 indicating that the Bulls have taken a moment to regroup while the Bears have lost further strength. For today, the Bulls need to overcome the levels of 6120 to maintain their upwards momentum whereas the Bears need to breach the levels of 6020 to regain their lost grounds.

2) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.

3) The stochastics are now in the overbought zone but are still pointing upwards.

 

4) In the above chart, the volumes have decreased with the stagnation in the Nifty indicating lack of participation. The MACD is showing a small positive divergence, although with a horizontal trajectory. The ADX is suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its buy signal with a SL now pegged at 6003.

5) Considering the above, our trading plan for the day is as under.

a) Around 6060 we will open fresh long positions with a SL of 6035 and a target of 6110. We will add to these long positions only above 6130.

b) Around 6120 we will open fresh short positions with a SL of 6130 and a target of 6080. We will add to these short positions only below 6035.

Happy Trading !!! 

Also visit Just Nifty and the Nifty Range blogs.


For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 22 Jan 2013 - Steady Bull run continues

Nifty continues making higher highs and higher lows, slowly but steadily.

As discussed yesterday, we saw that the Bulls were still strong enough to keep the Nifty afloat, on a day when the Nifty traded in a narrow range but with a unmistakeable upward bias. The Nifty opened with a positive gap of 20 points, closed the gap during the day, made a high of 6094 and closed at 6082 with a gain of 18 points. None of our trading plans got triggered and we were happy to sit on the sidelines on this NR7 day.

1) The Elder Ray readings : Bull Power reduces from +83 to +82 Bear Power also reduces from +48 to +53 indicating that the Bulls have taken a moment to regroup while the Bears have lost further strength. For today, the Bulls need to overcome the levels of 6120 to maintain their upwards momentum whereas the Bears need to breach the levels of 6020 to regain their lost grounds.

2) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.

3) The stochastics are now in the overbought zone but are still pointing upwards.

Nifty - 21 Jan 2013 - Bulls still strong

Nifty makes yet another 24 month high and a higher close. Bulls rule the roost.

As discussed on Friday, the Bull run continued, with opening with a 20 point positive gap up and maintaining that gain throughout the entire session, making a higher high and a higher low. The Nifty made a high of 6083 before closing at  6064 with a gain of 25 points. Our trading plan (b) got triggered and we booked out well in time with a minor profit of 15 points.

1) The Elder Ray readings : Bull Power rises from +63 to +83 Bear Power reduces from -2 to +48 indicating that the Bears lost a wonderful chance of returning to safety due to lack of followup by them. For today the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach the levels of 6005 to regain their lost grounds.

2) The Nifty has closed well above all its key EMAs and also above all its key DMAs.

3) The stochastics are right on the boundary of the overbought zone.

 

4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may sustain. The MACD continues to be flat but positive. The ADX is showing a rise in the momentum for the up move. The Parabolic SAR continues with its buy signal with a SL now pegged at 5988.

5) Considering the above, our trading plan for the day is as under.

a) Around 6040 we will open fresh long positions with a SL of 6015 and a target of 6090. We will add  to these long positions only above 6110.

b) Around 6100 we will open fresh short positions with a SL of 6110 and a target of 6060. We will add to these short positions only below 6015.

Happy Trading !!!     

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 21 Jan 2013 - Bulls still strong

Nifty makes yet another 24 month high and a higher close. Bulls rule the roost.

As discussed on Friday, the Bull run continued, with opening with a 20 point positive gap up and maintaining that gain throughout the entire session, making a higher high and a higher low. The Nifty made a high of 6083 before closing at  6064 with a gain of 25 points. Our trading plan (b) got triggered and we booked out well in time with a minor profit of 15 points.

1) The Elder Ray readings : Bull Power rises from +63 to +83 Bear Power reduces from -2 to +48 indicating that the Bears lost a wonderful chance of returning to safety due to lack of followup by them. For today the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach the levels of 6005 to regain their lost grounds.

2) The Nifty has closed well above all its key EMAs and also above all its key DMAs.

3) The stochastics are right on the boundary of the overbought zone.