Nifty makes a new high, gets sold off and returns to the trading range.In our yesterday's post Bulls stay cautious, we had suggested that in spite of being cautious, the Bulls still hold the keys to the Nifty, and that suggestion came true, as the Nifty after a mild negative opening, ground into a narrow trading range before the RBI monetary policy announcements, and then swiftly made a new high, got sold off, again made a newer high at 6112 before again getting sold off and making a low of 6042 before closing at 6050 with a loss of 25 points. We must confess here, that during all this hullabaloo, both our trading plans got triggered and met their respective targets without hitting the stop loss, and we missed out on a real 100 pointer just because of our over obsession with our medium term view. The only positive is that this has made us even more confident about our trading plans in the future.1) The Elder Ray readings : Bull Power rises from +52 to +74 Bear Power also rises from +25 to +4 indicating that though the Nifty has closed lower, the Bears have not yet been able to recover fully their lost grounds. For today, the Bulls need to overcome the levels of 6115 to maintain their upwards momentum whereas the Bears need to breach the levels of 6035 to regain their lost grounds.2) The Nifty has closed just below its 8EMA (6051) and has closed above all its other key EMAs and also above all its key DMAs.3) The stochastics remain just below the overbought zone and are pointing skewed. 4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue for a while. The MACD continues to point horizontal. The ADX is suggesting a rise in the upwards momentum and bottoming out of the overall momentum. The Parabolic SAR has now turned into a buy signal with a SL of 6008.5) Considering the above, our trading plan for the day is as under.a) Around 6020 we will open fresh long positions with a SL of 6000 and a target of 6085. We will add to these long positions only above 6100.b) Around 6090 we will open fresh short positions with a SL of 6100 and a target of 6040. We will add to these short positions only below 6000.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty makes a new high, gets sold off and returns to the trading range.
In our yesterday's post Bulls stay cautious, we had suggested that in spite of being cautious, the Bulls still hold the keys to the Nifty, and that suggestion came true, as the Nifty after a mild negative opening, ground into a narrow trading range before the RBI monetary policy announcements, and then swiftly made a new high, got sold off, again made a newer high at 6112 before again getting sold off and making a low of 6042 before closing at 6050 with a loss of 25 points. We must confess here, that during all this hullabaloo, both our trading plans got triggered and met their respective targets without hitting the stop loss, and we missed out on a real 100 pointer just because of our over obsession with our medium term view. The only positive is that this has made us even more confident about our trading plans in the future.
1) The Elder Ray readings : Bull Power rises from +52 to +74 Bear Power also rises from +25 to +4 indicating that though the Nifty has closed lower, the Bears have not yet been able to recover fully their lost grounds. For today, the Bulls need to overcome the levels of 6115 to maintain their upwards momentum whereas the Bears need to breach the levels of 6035 to regain their lost grounds.
2) The Nifty has closed just below its 8EMA (6051) and has closed above all its other key EMAs and also above all its key DMAs.
3) The stochastics remain just below the overbought zone and are pointing skewed.
On the eve of the RBI meet, Bulls are cautious, but still hold the keys to the Nifty.As discussed yesterday, the Bullish bias returned to the bourses. The Nifty opened with a mild positive gap up, then crossed the previous day's high only to grind in a 30 point range for the entire day, maintaining the bullish undertones and closing flat. None of our trading plans got triggered and we sat on the sidelines waiting for the next move, which we feel will be on the upside.1) The Elder Ray readings : Bull Power rises from +51 to +52 Bear Power reduces from -15 to +25 indicating that on a crucial day, the Bears are out of their safe zone. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach 6040 to regain their lost grounds.2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.3) The stochastics are below the overbought zone and are pointing upwards. 4) In the above chart, the volumes have fallen with the Nifty remaining stagnant, indicating the caution taken up by traders just before a event day. The MACD continues to point horizontal. The ADX is showing a rise in momentum for the bulls. The Parabolic SAR continues with its sell signal with a SL of 6098.5) Considering the above, our trading plan for the day is as under.a) Around 6055 we will open fresh long positions with a SL of 6030 and a target of 6095. We will add to these long positions only above 6120.b) Around 6105 we will open fresh short positions with a SL of 6120 and a target of 6070. We will add to these short positions only below 6030.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
On the eve of the RBI meet, Bulls are cautious, but still hold the keys to the Nifty.
As discussed yesterday, the Bullish bias returned to the bourses. The Nifty opened with a mild positive gap up, then crossed the previous day's high only to grind in a 30 point range for the entire day, maintaining the bullish undertones and closing flat. None of our trading plans got triggered and we sat on the sidelines waiting for the next move, which we feel will be on the upside.
1) The Elder Ray readings : Bull Power rises from +51 to +52 Bear Power reduces from -15 to +25 indicating that on a crucial day, the Bears are out of their safe zone. For today, the Bulls need to overcome the levels of 6095 to maintain their upwards momentum whereas the Bears need to breach 6040 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The stochastics are below the overbought zone and are pointing upwards.
Nifty is back to bullish undertones, but minor roadblocks ahead need to be jumped.On Friday, we had expected a volatile end of week, and the Nifty after a minor positive gap up opening, traded in a very confined range for most of the trading session with violent ups and downs, before, late in the afternoon, the Bulls took charge and strode the Nifty above 6065 to levels of 6081 before closing at 6075. Our trading plan (a) got triggered and met the SL and we booked out with a small loss of 10 points. We are carrying forward long positions with a very short time perspective.1) The Elder Ray readings : Bull Power rises from +43 to +51 Bear Power also rises from -14 to -15 indicating that the Nifty is still in the equilibrium and that the Bulls have some more work to do. For today, the Bulls need to overcome the levels of 6085 to maintain their upwards momentum whereas the Bears need to breach the levels of 6015 to retain their downwards momentum.2) The Nifty has yet again now closed above all its key EMAs and also above all its key DMAs.3) The stochastics are just below the overbought zone and are pointing upwards. 4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that there may be roadblocks ahead in its upward path. The MACD continues to point horizontal without any directional bias. The ADX is suggesting a overall loss of momentum but a rise in the upwards momentum. The Parabolic SAR continues with its sell signal with a SL now at 6099.5) Considering the above, our trading plan for the day is as under. a) Around 6110 we will open fresh short positions with a SL of 6125 and a target of 6060. We will add to these short positions only below 6025.b) Around 6040 we will open fresh long positions with a SL of 6025 and a target of 6095. We will add to these long positions only above 6125.Happy Trading !!! Also visit Just Nifty and the Nifty Range blogs.For cash market recommendations see our Daily Pre Market calls on NSE
Nifty is back to bullish undertones, but minor roadblocks ahead need to be jumped.
On Friday, we had expected a volatile end of week, and the Nifty after a minor positive gap up opening, traded in a very confined range for most of the trading session with violent ups and downs, before, late in the afternoon, the Bulls took charge and strode the Nifty above 6065 to levels of 6081 before closing at 6075. Our trading plan (a) got triggered and met the SL and we booked out with a small loss of 10 points. We are carrying forward long positions with a very short time perspective.
1) The Elder Ray readings : Bull Power rises from +43 to +51 Bear Power also rises from -14 to -15 indicating that the Nifty is still in the equilibrium and that the Bulls have some more work to do. For today, the Bulls need to overcome the levels of 6085 to maintain their upwards momentum whereas the Bears need to breach the levels of 6015 to retain their downwards momentum.
2) The Nifty has yet again now closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are just below the overbought zone and are pointing upwards.
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