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Friday 6 December 2013

Nifty - 06 Dec 2013 - Nifty sheds weak Bulls

Nifty leaps big and then retreats. Bullish stance maintained. End of week crucial.

As discussed yesterday, Nifty had staged a "Pullback for a big leap", as the Nifty after closing 6161 on Wednesday, opened with a huge positive gap up of 101 points at 6262. However, the Nifty made a quick high of 6301 in the first 15 minutes of trade and then started to come off its highs. The Nifty made a intraday low of 6232 in the last hour of trade before closing at 6241, well off the highs, but with a whopping gain of 80 points, over the previous closing. We initiated a trade on the long side and booked a loss of 30 points as our SL got hit.

1) The Elder Ray readings : Bull Power rises from +73 to +150 Bear Power reduces from +14 to +81 indicating that the Bulls have now gained a considerable hold over the Nifty. For today, the Bulls need to overcome the levels of 6320 to maintain their upwards momentum whereas the Bears need to breach the levels of 6165 to regain their lost grounds.

2) The stochastics are still hovering on the border of the overbought zone.

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

Thursday 5 December 2013

Nifty - 05 Dec 2013 - Pullback for a big leap

Nifty pulls back a little, but maintains its bullish stance, getting ready for a big leap.

As discussed yesterday, there were "Traces of bullishness" remaining on the Nifty, and they stayed that way even after a lower close at the end of the day. The Nifty opened with a 14 point negative gap down at 6188 and then traded in a 60 point range between 6210 and 6150. The last hour of trade saw some profit booking on the bourses and the Nifty closed at 6161 with a loss of 41 points. 

1) The Elder Ray readings : Bull Power reduces from +94 to +73 Bear Power rises from +60 to +14 indicating that this profit booking has still left the Bulls in control of the Nifty. For today, the Bulls need to overcome the levels of 6215 to maintain their upwards momentum whereas the Bears need to breach the levels of 6135 to regain their lost grounds.

2) The stochastics are in just hovering around the overbought zone.

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

Wednesday 4 December 2013

Nifty - 04 Dec 2013 - Traces if Bullishness remain

Nifty stays range bound but maintains its Bullish attire. "Buy the dips" continues. 

As discussed yesterday, the Nifty showed its "Neutrality turn to Bullish" pattern. Although the Nifty consolidated in a confined range of 34 points, it never really threatened the advancing of moving averages, which are so critical to the technical broader picture. In the meantime, we got a NR7 day yesterday, and should expect a big move within a day or two from now on. Yesterday, none of our trading plans got triggered, and we sat out watching the gyrations of the Nifty.

1) The Elder Ray readings : Bull Power reduces from +109 to +94 Bear Power also reduces from +51 to +60 indicating that the Bulls are still well placed and that this consolidation has only put back the Bears by that much distance. For today, the Bulls need to overcome the levels of 6240 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6140 to regain their lost grounds.

2) The stochastics are now in the overbought zone.

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

Tuesday 3 December 2013

Nifty - 03 Dec 2013 - Neutrality turns Bullish

Within two session, Nifty turns from neutral to Bullish. "Buy the dips" is the mantra.

Since our last post "Indecisive at the end of month", the Nifty has moved up by over a 100 points and has turned the technicals in favor of the Bulls. Yesterday, we again took a trading holiday owing to preoccupation with personal issues. On a broader frame, the Nifty is consolidating within a range of 5970 and 6230 for the past 13 sessions, and one more dip towards the lows of this range cannot be ruled out. However, the recent technicals are only pointing at a new high very soon.

1) The Elder Ray readings : Bull Power rises from +79 to +109 Bear Power reduces from 0 to +51 indicating that the Bulls are now in the driving seat on the Nifty. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum whereas the Bears need to breach the levels of 6135 to regain their lost grounds.

2) The stochastics are approaching the overbought zone but are not quite there yet.

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

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