Nifty - 06 Aug 2014 - Consolidation continues

Nifty consolidates within a broader range of 150 points. Needs to sustain 7700 now.

In our last post, we had suggested that "Nifty may consolidate now" and in the last couple of trading sessions, Nifty has done exactly that, albeit in a very wide range of almost 130 points in the last two days. However, on both the occasions, the Bulls have managed to close the Nifty at the higher end, indicative of Bullish undertones as of now. We took a trading holiday yesterday.

1) The Elder Ray readings : Bull Power rises from -4 to +46 Bear Power reduces from -76 to -67 indicating that both the Bulls and the Bears are in equilibrium as of now. For today, the Bulls need to overcome the levels of 7760 to maintain their upwards momentum whereas the Bears need to breach the levels of 7630 to maintain their downwards momentum.

2) The stochastics remain in the neutral zone and are pointing in opposite directions.

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

Nifty - 04 Aug 2014 - Nifty may consolidate now

After a 200 point fall in 2 trading sessions, the Nifty may consolidate in a narrow range.

As discussed on Friday, we saw more than "Glimpses of a down trend" on the Nifty. The Nifty opened at 7663 (right into our identified support zone) and after making a quick low of 7650, went up sharply, first to the levels of 7695 and then to 7717, before turning downwards. From there, the Nifty traded in a narrow range for almost an hour or so, before beginning its downwards march furiously. The Nifty broke the support zone, breached 7600 and reached a low of 7594 before closing at 7603 with a loss of 118 points against its previous close. We took a trade on the long side and could garner 100 points on two lots with a timely exit. We did not take the short trade on offer and missed out on another 50 points or so.

1) The Elder Ray readings : Bull Power reduces from +75 to +16 Bear Power rises from -4 to -107 indicating that now the Bears are in the control, but have yet to dislodge the Bulls. For today, the Bulls need to overcome the levels of 7720 to maintain their upwards momentum whereas the Bears need to breach the levels of 7575 to maintain their downwards momentum.

2) The stochastics are in the neutral zone now, and are pointing downwards.

3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs.

Nifty - 01 Aug 2014 - Glimpses of a down trend

Nifty shows glimpses of preparing for a down move. Test of supports at 7670 likely.

As discussed yesterday, we saw "Expiry Jitters" on the bourses as the Nifty lingered in a 20 point zone at almost the top end of the trading range for most of the morning trading session, before nosediving to close near the day's lows. The Nifty opened with a 6 point negative gap down at 7785 and attempted to regain the green but failed multiple times. This failure boosted the Bears who then, in the afternoon trade, pushed the Nifty down to our identified support zone of 7740. There was an attempt to recovery which fizzled out quickly at 7760 and the Nifty again plunged to the lows of 7714 before closing at 7721 with a loss of 90 points against its previous close. We took a trade on the long side and lost 24 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +82 to +75 Bear Power also reduces from -9 to -4 indicating that both the parties have lost strength yet both are still in the reckon. For today, the Bulls need to overcome the levels of 7795 to maintain their upwards momentum whereas the Bears need to breach the levels of 7710 to maintain their downwards momentum.

2) The stochastics are on the boundary of the overbought zone and are pointing downwards.

3) The Nifty has closed below its 8EMA but above its 13EMA(7717) and 21EMA(7680) and has closed above all its key DMAs.

Nifty - 31 Jul 2014 - Expiry Jitters !!!

Nifty seems all set for a Bullish expiry as well as month end. Expect volatility to rise.

Just as we said in our yesterday's post that the "Bulls are losing their grip", the Bulls came back strongly in the last hour of trade to regain the green territory, albeit after the Bears had a foot in. The Nifty opened almost flat and continued to fall in the morning trade. After opening at 7746 the Nifty slipped to 7708 (just within our identified zone of support) by the afternoon and then traded sluggishly below 7730 for almost a couple of hours. Just when the Bears started to feel comfortable, the Bulls came back and the Nifty saw a huge rise of 90 points to make a high of 7799 before closing at 7791 with a gain of 43 points over its previous close. We took a trade on the long side and could book out with a profit of 80 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +96 to +82 Bear Power rises from +19 to -9 indicating that the Bears after just regaining their safe zone have allowed the Bulls to retain their advantage. For today, the Bulls need to overcome the levels of 7815 to maintain their upwards momentum whereas the Bears need to breach the levels of 7700 to maintain their downwards momentum. 

2) The stochastics are in the overbought zone and are pointing upwards yet.

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

Nifty - 30 Jul 2014 - Bulls losing grip

Bulls are losing their grip on the Nifty slowly, yet Bears not looking strong either.

As discussed in our Friday's post "Bulls hold advantage", the Bulls after opening the Nifty in the green and sustaining the green for the first hour of trade, let loose their grip and let the Nifty breach previous two day's low, only to recover somewhat in the last hour of trade and keeping themselves in the run as yet. The Nifty opened at 7793, made a high of 7800 and then dipped to 7723, recovered to 7762 before closing at 7749 with a loss of 51 points against its previous close. We took a trade on the long side as per our trading plan and could book out with a profit of 25 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +144 to +96 Bear Power rises from +52 to +19 indicating that though the Bulls are losing that grip, the Bears are yet to take advantage. For today, the Bulls need to overcome the levels of 7805 to maintain their upwards momentum, whereas the Bears need to breach the levels of 7710 to regain their lost grounds.

2) The stochastics continue to remain in the overbought zone and continue to point  downwards.  

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

Nifty - 28 Jul 2014 - Bulls hold advantage yet

Nifty gives away 40 points in a profit booking bout. Bulls still hold sway before expiry.

As discussed on Friday, the Nifty "Ventured into newer orbits", but could not sustain there as a profit booking bout emerged at 7840 levels. The Nifty opened flat at 7828 and after making a quick top at 7840, plunged downwards to 7749, breaching the two day low formed at 7753, only to recover a major part of the fall and close at 7790 with a loss of 40 points over its previous close. We took a trade on the long side and booked a loss of 25 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +154 to +144 Bear Power rises from +90 to +52 indicating that the Bulls are stopping for breath, but the Bears are still far away from safety. For today, the Bulls need to overcome the levels of 7855 to maintain their upwards momentum whereas the Bears need to breach the levels of 7705 to regain their lost grounds.

2) The stochastics are well and deep into the overbought zone and are now pointing downwards.

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

Nifty - 25 Jul 2014 - Venturing into newer orbits

Nifty enters newer orbits and sustains at a new closing high. Time to remain long.

As discussed yesterday, the "Bulls kept Nifty buoyant" and conquered yet another unchartered territory, albeit after sucking in their share of profit booking. The Nifty opened flat at 7796 and them after making a quick high of 7804 pulled back to the lows of 7772 (our identified support level of 7770) and then lingered in a range of 20 points above those support levels. Then in the last hour of trade, the Nifty broke out of the range and ventured into new orbits making a high of 7836 before closing at 7831 with a gain of 35 points over its previous close. We took a trade on the long side and booked out with a profit of 45 points on that trade.

1) The Elder Ray readings : Bull Power rises from +153 to +154 Bear Power also rises from +96 to +90 indicating that Bulls are holding the control as of now. For today, the Bulls need to overcome the levels of 7860 to maintain their upwards momentum whereas the Bears need to breach the levels of 7705 to regain their lost grounds.

2) The stochastics are well and deep into the overbought zone, but have not yet triggered a Sell.

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

Nifty - 24 Jul 2014 - Bulls keep Nifty buoyant

Nifty makes a new all time high and gives a all time high close. Bulls in full control.

As discussed in our yesterday's post, "Bulls promise all time high", we got not only a new high, but a new all time highest close also. Albeit this happened after a fair amount of profit booking. The Nifty opened with a positive gap up of 27 points at 7795 and after a preliminary dip of about 20 points, crossed the opening mark and made a new all time high at 7809, within the first hour of trade. From there, the profit booking started, which took the Nifty to 7780, then to 7765 and then to 7753. Buyers came in at that point and the Nifty saw a sharp recovery in the last hour of trade to close at a all time high of 7796 with a gain of 28 points over its previous close. None of our trading plans triggered yesterday.

1) The Elder Ray readings : Bull Power rises from +141 to +153 Bear Power reduces from +72 to +96 indicating that the Bulls are in full control as of now. For today, the Bulls need to overcome the levels of 7830 to maintain their upwards momentum whereas the Bears need to breach the levels of 7675 to regain their lost grounds.

2) The stochastics are now almost in the overbought zone, but are indicating some more room on the upside.

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

Nifty - 23 Jul 2014 - Bulls promise all time high

Nifty comes within reach of all time highs. Bullish expiry on the cards as of now.

As discussed yesterday, the "Bulls held on" and with great follow through, which was lacking day before yesterday. The Nifty opened with a 24 point positive gap up at 7708 and after making a quick low of 7705, surged towards 7750 (our identified resistance zone). From there, the Nifty retreated a bit, but always held on to the lows of the day, and recovered, and crossed the resistance zone of 7750 7770, before making a high of 7774 and closing at 7768 with a gain of 84 points over its previous close. We took a trade on the short side and could book out with a profit of 30 points on that trade.

1) The Elder Ray readings : Bull Power rises from +111 to +141 Bear Power reduces from +63 to +72 indicating that the Bulls are in the drivers seat as of now. For today, the Bulls need to overcome the levels of 7800 to maintain their upwards momentum whereas the Bears need to breach the levels of 7655 to regain their lost grounds.

2) The stochastics are now approaching the overbought zone, indicating some more room for an up move.

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

Nifty - 22 Jul 2014 - Bulls hold on without followup

Bulls hold on to the gains on the Nifty, but have to follow up soon to stave the Bears.

As discussed in yesterday's post, "Bulls should hold on", the Bulls did manage to keep the Nifty trading in the green, above its previous close of 7664, throughout the trading session. However, at the top end of the trading range, the Nifty saw some profit booking. The Nifty opened with a positive gap up of 38 points at 7702, then made a high of 7722 in the first half and hour of trade, before slipping to 7681 and then later in the day to 7674, before closing at 7684 with a gain of 20 points over its previous close. There was nothing for a day trader like us in yesterday's 50 point ranged day.

1) The Elder Ray readings : Bull Power rises from +86 to +111 Bear Power reduces from -3 to +63 indicating that the Bulls have now dislodged the Bears, but need to keep them away from their safe zone. For today, the Bulls need to overcome the levels of 7735 to maintain their upwards momentum whereas the Bears need to breach the levels of 7625 to regain their lost grounds.

2) The stochastics stay in the neutral zone and keep on pointing upwards.

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

Nifty - 21 Jul 2014 - Bulls should hold on

Nifty sets up stage for a fast up move. Bulls need to hold on to gains for now.

On Friday, we had suggested that the "Bullish trend may assert" itself, and despite weak global cues, the Nifty opened with just a 10 point negative gap down at 7630 and tested supports at 7595 as expected. From there on, the Nifty regained its initial losses and in the afternoon soared to touch new intraday high of 7685 before closing at 7664 with a gain of 23 points over its previous close. We traded on the long side and could book a profit of 40 points on that trade.

1) The Elder Ray readings : Bull Power rises from +68 to +87 Bear Power also rises from +25 to -3 indicating that the Bears are still in the reckon and that the Bulls need some more work to do. For today, the Bulls need to overcome the levels of 7700 to maintain their upwards momentum whereas the Bears need to breach the levels of 7590 to maintain their downwards momentum.

2) The stochastics are right in the center of the neutral zone and are pointing upwards.

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

Nifty -18 Jul 2014 - Bullish trend may assert

NR7 day formed with Nifty posing Bullish. Upmove to continue post testing supports.

As discussed yesterday, the Nifty stayed in "Bullish equilibrium" as the markets traded in a narrow range at the top end of the current trading range. The formation is extremely bullish and should eventually trap weak bears. The Nifty opened with a negative gap down of 12 points at 7613 and then lingered in a tight range of just 43 points, but keeping its open low same. The Nifty made a high of 7656 before closing at 7640 with a gain of 16 points over its previous close.

1) The Elder Ray readings : Bull Power rises from +61 to +88 Bear Power reduces from -46 to +25 indicating that now he Bulls have dislodged the Bears out of their safe zone. For today, the Bulls need to overcome the levels of 7665 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 7595 to regain their lost grounds.

2) The stochastics stay in the neutral zone and are pointing upwards.

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

Nifty - 17 Jul 2014 - Bullish equilibrium

Nifty rises 200 points in 2 days. Momentum with Bulls now. But resistance at 7700.

As discussed yesterday, the Bulls had promised buoyancy, and that played out during the trading session, with the Nifty remaining above its previous close for the entire session and in the last hour sky rocketing to 7640. The Nifty opened with a positive gap of 38 points at 7564 and stayed buoyant, dipping only to 7545 and then to 7532, while recovering almost immediately after the dips. In the last hour the Nifty swept past our identified resistance zone at 7590 7610 in a swift move with huge momentum to reach a high of 7640 before closing at 7624 with a huge gain of 98 points over its previous close. We took a trade on the long side and could book out with a profit of 35 points on that trade.

1) The Elder Ray readings : Bull Power rises from -36 to +61 Bear Power reduces from -112 to -46 indicating that although the momentum is with the Bulls, the Bears are still not out of the reckon. For today, the Bulls need to overcome the levels of 7650 to maintain their upwards momentum whereas the Bears need to breach the levels of 7530 to maintain their downwards momentum.

2) The stochastics are now in the neutral zone and are pointing upwards.

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

Nifty - 16 Jul 2014 - Bulls promise buoyancy

Nifty reclaims 7500 & promises buoyancy moving ahead. Yet, trading mode persists.

As discussed yesterday, in our post "Support @ 50DMA found", the Nifty remained in the positive territory for almost the entire trading session and closed well above the psychological level of 7500. The Nifty opened with a positive gap up of 37 points at 7491 and raced towards our identified resistance levels of 7515 7535 (where we opened intraday shorts). Having found resistance, the Nifty then dipped below 7500 and all the way down to 7459 where it found buying support and recovered fully to make a new intraday high at 7535 before closing at 7527 with a gain of 73 points over its previous close. We booked a profit of 40 points on the short trade taken.

1) The Elder Ray readings : Bull Power rises from -100 to -36 Bear Power reduces from -157 to -112, indicating that though the Bulls have reclaimed a lot, there is more for them to do to recover their lost territory. For today, the Bulls need to overcome the levels of 7565 to regain their lost grounds whereas the Bears need to breach the levels of 7445 to maintain their downwards momentum.

2) The stochastics are in the oversold zone and are looking to move upwards.

3) The Nifty continues to close below all its key EMAs but above all its key DMAs.

Nifty - 15 Jul 2014 - Support @ 50DMA found

Nifty tests support at 50DMA, yet remains a Sell on rise. Bulls need to come in here.

As discussed yesterday, the Nifty which was "Poised Bearishly", found support at 50DMA(7400) and closed a good 50 points above it. However, the technicals remain in favor of the Bears as yet. The Nifty opened with a positive gap up of 9 points at 7469, made a low of 7422 and then a high of 7478 before closing at 7454 with a loss of 5 points against its previous close. The further direction of the Nifty will be decided on how the Bulls are able to sustain the upcoming relief rally.

1) The Elder Ray readings : Bull Power reduces from +26 to -100 Bear Power rises from -152 to -157 indicating that the Bears are now in control of the Nifty and that they have dislodged the Bulls too. For today, the Bulls need to overcome the levels of 7560 to regain their lost grounds whereas the Bears need to breach the levels of 7400 to maintain their downwards momentum.

2) The stochastics have now reached the oversold zone.

3) The Nifty continues to close below all its key EMAs but above all its key DMAs.

Nifty - 14 Jul 2014 - Poised Bearishly

Nifty, at the start of week, is poised Bearishly, but is oversold. May see relief rally too.

As discussed on Friday, we saw a "Volatile end of week" on the bourses, with the Nifty, although after getting a positive gap up of 17 points at 7584 and having rallied till 7626 till noon, gave up all the gains and more by the closing. The Nifty made a low of 7447 before closing at 7460. There were a couple of attempts to recovery, but got deftly sold out at the nearest resistance point. We sat out of trade as decided and waited for the week to end for a clear signal.

1) The Elder Ray readings : Bull Power reduces from +109 to +27 Bear Power rises from -143 to -152 indicating that although the Bears have got a bit stronger, they are yet to dislodge the Bulls. For today, the Bulls need to overcome the levels of 7630 to maintain their upwards momentum whereas the Bears need to breach the levels of 7425 to maintain their downwards momentum.

2) The fast stochastics are well and deep into the oversold zone, with the slow stochastics lagging behind.

3) The Nifty continues to close below all its key EMAs but above all its key DMAs.

Nifty - 11 Jul 2014 - Volatile end of week

Post a 250+ points ranged session, Nifty may consolidate but volatility set to rise.

As discussed yesterday, we saw "Budget day Blues" on the Nifty, with a very wide 252 ranged session, as both the Bulls and the Bears sought to take control of the proceedings. The Nifty opened with a positive gap up of 5 points at 7590 and traded in a confined range up to the start of the Budget speech, when it started to plunge into a nosedive. The Nifty reached the low point of 7479 before noon, where it found not only buying support, but it turned so much Bullish that the Nifty crossed the day's high and reached 7731 within the next couple of hours. Finally, the Nifty closed at 7568 with a loss of 17 points against its previous close.

1) The Elder Ray readings : Bull Power rises from +18 to +108 Bear Power also rises from -80 to -144 indicating that both the Bulls and the Bears have not got stronger with the Bears having a slight edge. For today, the Bulls need to overcome the levels of 7725 to maintain their upwards momentum whereas the Bears need to breach the levels of 7465 to maintain their downwards momentum.

2) The stochastics continue to remain in the neutral zone and continue to point downwards.

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

Nifty - 10 Jul 2014 - Budget day Blues

Nifty poised critically ahead of the Budget day. Volatile session on the cards now.

As discussed yesterday, the Nifty which had a "Drop from the top" on the previous day, continued to plunge downwards, with a couple of attempts for a recovery that got thwarted easily. The Nifty opened at 7638 with a positive gap up of 15 points, and dropped within the first hour of trade to 7552 and recovered to a high of 7650 within the next hour. The Nifty then traded within a small range of 40 points before closing at 7585 with a loss of 38 points over its previous close. We booked a loss of 25 points on a long trade taken as per our trading plan that got failed.

1) The Elder Ray readings : Bull Power reduces from +169 to +18 Bear Power rises from -44 to -80 indicating that the Bears are now stronger, but the Bulls cannot be ignored as yet. For today, the Bulls need to overcome the levels of 7655 to maintain their upwards momentum whereas the Bears need to breach the levels of 7545 to maintain their downwards momentum.

2) The stochastics are in the middle of the neutral zone and are pointing downwards.

3) The Nifty has now closed below all its key EMAs but has closed above all its key DMAs.

Nifty - 09 Jul 2014 - Drop from the top

Nifty makes a new high and drops from the top. Bears get a look in, but need more.

As discussed yesterday, the Nifty stalled, but looked positive at the start of the trading session and remained so for the first hour of trade. The Nifty opened with a positive gap up of 17 points at 7804 and made a quick high of 7809 within the first few minutes of trade. However, the Nifty could not manage to sustain at those high levels and slipped to our identified support zone of 7745, from where a recovery was attempted but failed again. The Nifty then slipped below our identified key support of 7720 and then dropped almost vertically not even attempting a recovery. The Nifty made a low of 7596 before closing at 7623 with a loss of a whopping 164 points over its previous close. We took a trade on the long side at 7745 and booked out with a profit of 25 points.

1) The Elder Ray readings : Bull Power rises from +150 to +169 Bear Power also rises from +113 to -44 indicating that the Bears have now regained their lost grounds but need to keep the momentum with them as yet. For today, the Bulls need to overcome the levels of 7805 to maintain their upwards momentum whereas the Bears need to breach the levels of 7590 to maintain their downwards momentum.

2) The stochastics are back to the neutral zone and are pointing downwards.

3) The Nifty has now closed below its 8EMA(7671) and 13EMA(7640) but has closed above its 21EMA(7586) and has also closed above all its key DMAs.

Nifty - 08 Jul 2014 - Nifty stalls but looks positive

Nifty consolidates at the top of range, as indicators turn positive. Big move ahead. 

As discussed yesterday, "Bulls had their advantage" and maintained it throughout the trading session, managing to keep the Nifty afloat, trading at the top end of the trading range. However, a breakout did not materialize, indicating some kind of resistance developing. The Nifty opened with a positive gap up of 29 points at 7780 and made a high in our identified resistance zone around 7785. The Nifty then had a small dip to 7760 initially, and later in the day at 7755 from where the Nifty recovered to make a high of 7792 before closing at 7787 with a gain of 36 points over its previous close. We took a trade on the short side and booked 25 points on that trade.

1) The Elder Ray readings : Bull Power rises from +140 to +150 Bear Power reduces from +43 to +113 indicating that the Bears have lost heavily in this narrow ranged trading session. For today, the Bulls need to overcome the levels of 7815 to maintain their upwards momentum whereas the Bears need to breach the levels of 7665 to regain their lost grounds.

2) The stochastics continue to remain in the overbought zone.

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

Nifty - 07 Jul 2014 - Bulls have the advantage

With a positive weekly close, the Bulls have retained the advantage. Need follow up.

As discussed on Friday, we saw a "Bullish end of week". The Nifty which opened with a mild gap up of 3 points, struggled initially to cross the levels of 7735 and dipped below 7700 to reach 7661 (just below our identified support zone) and there it found so much buying pressure, that the Nifty not only reached above 7700, but also crossed the day's highs to reach out to our identified target zone of 7755. The Nifty made a high of 7758 before closing at 7752 a gain of 37 points over its previous close. We took a trade on the long side and could book a profit of 100 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +158 to +140 Bear Power rises from +111 to +43 indicating that though the Bulls have advantage, they are slipping and need to follow up. For today, the Bulls need to overcome the levels of 7780 to maintain their upwards momentum whereas the Bears need to breach the levels of 7640 to regain their lost grounds.

2) The stochastics are now well and deep into the overbought zone.

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

Nifty - 04 Jul 2014 - Bullish end of week

Nifty remains afloat over 7700, trading at the top end of the range. Buy the dips.

As discussed yesterday, the "Momentum remained with the Bulls", despite a small bout of profit booking at the higher levels. The Nifty opened with a positive gap of 9 points at 7734 and moved higher but was not able to cross 7755 and that became a high for the day. The Nifty saw a bout of profit booking and came down to 7710 (our identified support zone) within the next 20 minutes or so. From there, it went up to 7740 where it found profit taking again. The Nifty once again dipped to 7707 before closing at 7715 with a loss of 10 points against its previous close. We took a trade on the long side and could book a profit of 25 points on that trade.

1) The Elder Ray readings : Bull Power rises from +156 to +158 Bear Power reduces from +101 to +111 indicating that the Bulls are still in the driver's seat. For today, the Bulls need to overcome the levels of 7775 to maintain their upwards momentum whereas the Bears need to breach the levels of 7615 to regain their lost grounds.

2) The stochastics are now well into the overbought zone.

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

Nifty - 03 Jul 2014 - Momentum with the Bulls

Nifty enters and may sustain in unchartered zone, as Bulls pick up the momentum.

As discussed yesterday, Nifty was "Ready for newer skies" and it did not only enter newer skies but also sustained throughout the trading session, as the Bulls kept up the buying pressure. The Nifty opened with a positive gap up of 48 points at 7683 (above our identified breakout level of 7650), made a quick low of 7677 and then immediately soared above the 7700 mark. The Nifty kept on trading above this level with a couple of minor dips which got quickly bought into. The Nifty made a high of 7732 (again our identified target of the breakout) before closing at 7725 with a gain of 90 points over its previous close. We took a trade on the long side and booked out with a 50 points gain as our targets were achieved.

1) The Elder Ray readings : Bull Power rises from +98 to +156 Bear Power reduces from +67 to +101 indicating that the Bulls have not only gained strength by now, but they have also dragged the Bears away from their safe zone. For today, the Bulls need to overcome the levels of 7755 to maintain their upwards momentum whereas the Bears need to breach the levels of 7600 to regain their lost grounds.

2) The fast stochastics are already in the overbought zone but the slow stochastics are just below the overbought zone.

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

Nifty - 02 Jul 2014 - Ready for newer skies

Bulls seem to have prepared their launchpad to move the Nifty to unchartered zones.

As discussed yesterday, the "Bulls promised upward thrust" on the Nifty as they managed to thwart any Bearish attempts and kept the Nifty afloat throughout the trading session. The Nifty opened with a positive gap up of 18 points at 7629, made low of 7618, a high of 7649 before closing at 7635 with a gain of 23 points over its previous close. We did not take any trade on this narrow ranged day, when none of our trading plans triggered.

1) The Elder Ray readings : Bull Power rises from +86 to +98 Bear Power reduces from -6 to +67 indicating that on this consolidating day, the Bulls have now dislodged the Bears. For today, the Bulls need to overcome the levels of 7665 to maintain their upwards momentum whereas the Bears need to breach the levels of 7565 to regain their lost grounds.

2) The stochastics have now turned upwards with a huge space for an up move.

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

Nifty - 01 Jul 2014 - Bulls promise upward thrust

Nifty positioned well to capture all time highs yet again. Bulls need a final thrust.

As discussed yesterday, the Nifty which was languishing in a Neutral mode, got tilted towards the Bulls right from the opening mark. The Nifty opened with a positive gap up of 25 points at 7534, made a quick low of 7532 and breached in a one swift move our identified resistance zone of 7560 7580. All of that in just the first 20 minutes of trade. The Nifty then continued to rise consistently throughout the day, with a minor hiccup around 7605, which failed to breach 7580 again, and then the Nifty made a high of 7624 before closing at 7611, a gain of 103 points over its previous close. We took a trade on the long side on breach of the resistance zone and could book a profit of 35 points on that trade.

1) The Elder Ray readings : Bull Power rises from +13 to +86 Bear Power reduces from -43 to -6 indicating that the Bulls have gained in strength but are still to dislodge the Bears. For today, the Bulls need to overcome the levels of 7640 to maintain their upwards momentum whereas the Bears need to breach the levels of 7530 to maintain their downwards momentum.

2) The stochastics are showing a reversal after just touching the oversold zone top.

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

Nifty - 30 Jun 2014 - Neutral mode continues

At end of month, Nifty continues to consolidate after a huge rally from 7240 to 7700.  

As discussed on Friday, the Nifty remained "Neutral at the start of the series" throughout the trading session. The Nifty opened with a positive gap up of 21 points at 7514 and made a high of 7539 within the first half an hour of trade only to consolidate and languish within a narrow band of trade for the next couple of hours. The Nifty did dip to 7482 briefly but recovered from there to close at 7509, which was below the opening mark but above the previous close. We did not participate on this range bound dull day of trade.

1) The Elder Ray readings : Bull Power reduces from +42 to +13 Bear Power rises from -43 to -47 indicating that the Bears are a bit stronger, but have to dislodge the Bulls as yet. For today, the Bulls need to overcome the levels of 7540 to maintain their upwards momentum whereas the Bears need to breach the levels of 7480 to maintain their downwards momentum.

2) The stochastics are now approaching the oversold zone, but are not there quite yet.

3) The Nifty has closed below its 8EMA and 13EMA but has closed above its 21EMA(7481) and also above all its key DMAs.

Nifty - 27 Jun 2014 - Neutral at start of series

Nifty stands neutral at the start of a fresh series, testing key support levels.

As discussed yesterday, we saw "Expiry Jitters" on the trading floor for almost the entire trading session. The series which saw a low of 7118 and a high of 7700, a whopping 600 point range almost, saw profit booking on the last day of the series, as expected. The Nifty opened with a negative gap down of 15 points at 7554 and then made a quick high of 7570, which got negated due to lack of follow through by the Bulls and dipped to our identified support zone around 7515. The Nifty then tried to bounce back from those supports but could climb only up to 7545 and gave away. In the final hour, the Nifty breached those supports and dipped to a low of 7481 before closing at 7493 with a loss of 76 points against its previous close. We took a trade on the long side at 7515 and booked out with a profit of 25 points.

1) The Elder Ray readings : Bull Power reduces from +55 to +42 Bear Power rises from +23 to -47 indicating that the Bears have now regained their territory and both the Bulls and the Bears are now equidistant in their respective safe zones. For today, the Bulls need to overcome the levels of 7565 to maintain their upwards momentum whereas the Bears need to breach the levels of 7475 to maintain their downwards momentum.

2) The fast stochastics are almost touching the oversold zone, but the slow stochastic is lagging behind.

3) The Nifty has closed below its 8EMA and 13EMA but has closed above its 21EMA(7478) and also has closed above all its key DMAs.

Nifty - 26 Jun 2014 - Expiry Jitters

Nifty forms NR7 on eve of expiry, with Bulls holding on but lacking follow through.

As discussed yesterday, we saw Bulls retain their control over the Nifty but lacked the follow through that was expected after a emphatic up move post consolidation. The Nifty opened with a positive gap up of 8 points at 7589 and sheepishly throughout the trading session within a confined range of just 32 points between 7589 and 7557. The Nifty finally closed at 7569 with a loss of 11 points against its previous day close. We took two trades (via CALL options) on the long side and could book a total profit of 35 points in these trades.

1) The Elder Ray readings : Bull Power reduces from +65 to +55 Bear Power also reduces from -13 to +23 indicating that the Bulls have still retained their control and that the Bears are now out of their safe zone. For today, the Bulls need to overcome the levels of 7595 to maintain their upwards momentum whereas the Bears need to breach the levels of 7540 to regain their lost grounds.

2) The stochastics are right in the center of the neutral zone.

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

Nifty - 25 Jun 2014 - Bulls take control

Consolidation over, Bulls take control of the Nifty emphatically. Follow up needed.

As discussed yesterday in our post "Neutrality maintained", the Nifty was poised in the neutral territory, waiting for direction. The Bulls came on to the scene and opened the Nifty with a 22 point positive gap up at 7515, which was never even threatened during the entire trading session thereafter. After a minor hiccup in our identified resistance zone of 7555 to 7575, the Nifty managed to overcome this and made a intraday high of 7593, dipped above 50 points and recovered, all in the last hour of trade, to close at 7580 with a gain of 87 points over its previous close. We took two trades on the long side and earned a total profit of 65 points in them.

1) The Elder Ray readings : Bull Power rises from +15 to +65 Bear Power reduces from -78 to -13 indicating that the Bulls have gained but the Bears are still in the reckoning. For today, the Bulls need to overcome the levels of 7605 to maintain their upwards momentum whereas the Bears need to breach the levels of 7510 to maintain their downwards momentum.

2) The stochastics are still in the neutral zone and are pointing across each other.

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

Nifty - 24 Jun 2014 - Neutrality maintained

Nifty continues to stand neutral, trading in the lower band. Bearishness setting in.

As discussed yesterday, Nifty continued to be Neutral at the start of expiry week. The Nifty opened with a positive gap up of 3 points and looked to trade in the green for the first 30 minutes of trade, clocking a high of 7535. However, once the Nifty breached the opening mark and the levels of 7500, it started making new intraday lows (7465, 7448 and finally 7442) with intermittent bouts of buying. In the last 40 minutes, the Bulls came back and saw a sharp recovery of almost 70 points when the Nifty got back to 7512 and closed at 7493 with a loss of 18 points against its previous close. We took two trades on the long side and could book a profit of 42 points on those trades.

1) The Elder Ray readings : Bull Power reduces from +37 to +15 Bear Power rises from -27 to -78 indicating that the Bears have now got stronger but the Bulls are still in their safe zone. For today, the Bulls need to overcome the levels of 7540 to maintain their upwards momentum whereas the Bears need to breach the levels of 7435 to maintain their downwards momentum.

2) The stochastics are right in the middle of the neutral zone and are pointing downwards.

3) The Nifty has closed below its 8EMA(7537) and its 13EMA(7520) however it has closed above its 21EMA(7457) and also closed above all its key DMAs.

Nifty - 23 Jun 2014 - Neutral at start of week

At start of expiry week, Nifty stands neutral, trading rangebound in the lower band.

As discussed on Friday, it turned out to be a "Critical EOW" as the Nifty traded in a confined range of 64 points between 6561 on the higher side and 6497 on the lower side, after opening with a gain on 3 points at 7543 and closing at 7511 with a loss of 29 points. Thus the Nifty has now made a lower high and a lower low too. On the weekly charts too, the Nifty made a lower high and a lower low, thus indicating that the Bears are getting stronger, as the Bulls try to hold on to critical supports.

1) The Elder Ray readings : Bull Power reduces from +80 to +37 Bear Power rises from -24 to -27 indicating that both the Bulls and the Bears are now almost equidistant from the zero line. For today the Bulls need to overcome the levels of 7560 to maintain their upwards momentum whereas the Bears need to breach the levels of 7490 to maintain their downwards momentum.

2) The stochastics are now in the neutral zone and are pointing downwards.

3) The Nifty has now closed below its 8EMA and 13EMA but has closed above its 21EMA and all its key DMAs.

Nifty - 20 Jun 2014 - Critical EOW is here

Nifty continues to trade lower, but holding key supports, is poised critically at EOW.

As discussed yesterday, the Nifty remained "Volatile yet Bullish" during the trading session yesterday. Riding on positive global cues, the Nifty opened with a positive gap up of 22 points at 7580 and traded bullish in the first hour of trade, managing to hold in the green and even crossing the 7600 levels. However, the Nifty could not breach the resistance levels at 7620 and retreated from 7606 itself. Once the down move started, within 40 minutes, the Nifty plummetted from 7580 to 7503, kissing our identified support range. The Nifty found support there and went up to 7565 before closing at 7541 with a loss of 18 points over the previous close. We took a trade on the long side and could book out with a profit of 45 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +139 to +80 Bear Power rises from -8 to -24 indicating that the Bears are gaining strength at the cost of the Bulls now. For today, the Bulls need to overcome the levels of 7610 to maintain their upwards momentum whereas the Bears need to breach the levels of 7500 to maintain their downwards momentum.

2) The stochastics are just below the overbought zone and are pointing downwards.

3) The Nifty has closed below its 8EMA(7561) but is above its 13EMA and 21EMA and also above all its key DMAs which are rising consistently.

Nifty - 19 Jun 2014 - Volatile yet Bullish

Nifty makes higher high and higher low, yet closes in Red. Bulls in control as of now.

As discussed yesterday, "Bulls took over" the charge of the Nifty right at the start of the session and maintained the Nifty in the positive for the first couple of hours. The Nifty opened positive at 7636 and traded in the green, making a high of 7663. That is where the Bulls lacked follow up and the Nifty slipped in the red and dipped to 7516 within the next half an hour or so. Then came a recovery that took the Nifty almost a 100 points up and back in a highly volatile trading period. The Nifty finally closed at 7558 with a loss of 74 points against its previous close. We took a trade on the long side and got whipsawed, but lost only 20 points in that trade.

1) The Elder Ray readings : Bull Power rises from +120 to +139 Bear Power reduces from -9 to -8 indicating that the Bulls are strong as of now but the Bears cannot be ignored. For today, the Bulls need to overcome the levels of 7670 to maintain their upwards momentum whereas the Bears need to breach the levels of 7520 to maintain their downwards momentum.

2) The stochastics keep hovering on the edge of the overbought zone and are pointing flat.

3) The Nifty has closed below its 8EMA(7567) but has closed above its 13EMA(7524) and its 21EMA(7438) and is also above all its key DMAs.

Nifty - 18 Jun 2014 - Bulls take over

Bulls attempt to resume uptrend post a consolidation. Need to follow through.

In our yesterday's post, "Bears get a look in", we had suggested that Bears needed to sustain lower levels at least for a couple of sessions. That was not to happen. The Nifty, having opened with a negative gap down of 9 points at 7525, continued its consolidation for most part of the trading session yesterday, without even threatening to breach the previous day's lows. Then, in a late hour rush, the Bulls took the Nifty by the scruff and took it past 7600, to make a high of 7638 before closing at 7632, with a gain of 98 points over the previous close. We took a impromptu long position at 7540 and booked out at 7620 with a 80 points profit by the EOD. 

1) The Elder Ray readings : Bull Power rises from +50 to +120 Bear Power reduces from -11 to -9 indicating that the Bulls are in the drivers seat as of now. For today, the Bulls need to overcome the levels of 7655 to maintain their upwards momentum whereas the Bears need to breach the levels of 7525 to maintain their downwards momentum.

2) The stochastics are hovering on the edge of the overbought zone, pointing across.

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

Nifty - 17 Jun 2014 - Bears get a look in

Bears close Nifty below 8EMA for 2 sessions consecutively. Bulls need to come in. 

In our last post we had mentioned that "Bulls were in charge", but that was about 6 sessions ago and once the Nifty touched 7700 on 11th Jun, the Nifty has seen profit booking and then some more Bearish moves, wherein the Nifty made a low of 7488 yesterday. However, the Bulls have always managed to close the Nifty above the psychological levels of 7500. While our other priorities have kept us away from active trading and blogging, we have been monitoring the moves on the Nifty from the sidelines. If the Bears are not able to sustain lower levels in the coming couple of sessions, then the Bulls will get their chance to make even more all time new highs.

1) The Elder Ray readings : Bull Power reduces from +185 to +50 Bear Power rises from +32 to -11 indicating that the Bears have now regained their lost territory and need to do more to keep it that way. For today, the Bulls need to overcome the levels of 7555 to maintain their upwards momentum whereas the Bears need to breach the levels of 7485 to maintain their downwards momentum. 

2) The stochastics have just moved below the overbought zone and are pointing downwards.

3) The Nifty has closed below its 8EMA(7551) but is above its 13EMA(7499) & 21EMA(7405) and is also above all its key DMAs. 

Nifty - 09 Jun 2014 - Bulls in charge

Bulls close the Nifty at all time high. Should be able to sustain this momentum now.

In our Friday's post, "EOW may be bullish" we had stated our expectations from the Bulls as "need a close today above 6505, better still above 6565" and how well did they respond. The Nifty which opened with a 47 point gap up at 7522, shook off the weak bulls by a quick dip to 7593 and then consistently kept on rising for the entire trading session thereafter. The Nifty finally made a high of 7593 before closing at the all time highest close of 7583 with a gain of 109 points over the previous close. We took a trade on the long side once the Nifty crossed over the opening mark after sustaining the lows at 7525 and booked out with a profit of 50 points at 7525.

1) The Elder Ray readings : Bull Power rises from +176 to +245 Bear Power reduces from +106 to +107 indicating that the Bulls are gaining in strength as of now. For today, the Bulls need to overcome the levels of 7635 to maintain their upwards momentum whereas the Bears need to breach the levels of 7385 to regain their lost grounds.

2) The stochastics have now re-entered the overbought zone and are pointing upwards yet.

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

Nifty - 06 Jun 2014 - EOW may be Bullish

Bulls show the way forward, need a close today above 6505, better still above 6565.

As discussed yesterday, the Nifty which was "Waiting for direction", mimicked a false signal of going down in the opening trades, but found support at the 8EMA and bounced back to give a all time high close. The Nifty opened with a mild negative gap down of 3 points at 7400 and traded bearishly in the first 45 minutes of trade, making a low of 7361, where it found support and bounced back furiously, with two minor draw-downs, to make a high of 7485 before closing at 7474 with a gain of 72 points over its previous close. Now, today being a EOW session, the Bulls need to close the Nifty in the positive to negate the Bearish Engulf formed last week on the weekly charts. We need to watch out for that.

1) The Elder Ray readings : Bull Power rises from +153 to +176 Bear Power also rises from +111 to +52 indicating that the Bulls are strong as of now. For today, the Bulls need to overcome the levels of 7515 to maintain their upwards momentum whereas the Bears need to breach the levels of 7340 to regain their lost grounds.

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

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

Nifty - 05 Jun 2014 - Waiting for direction

NR7 day formed on the Nifty, as markets consolidate and wait for further direction.

As discussed yesterday, it was a "Test of resistances" day on the Nifty. The Nifty which opened flat at 7418, traded for the entire session within a range of 42 points with a high of 7433 and a low of 7391, before closing at 7402 with a loss of 14 points against its previous close. A breakout from this squeezed range would provide further momentum to the Nifty. We did not trade in this narrow ranged trading session.

1) The Elder Ray readings : Bull Power reduces from +164 to +153 Bear Power also reduces from +82 to +111 indicating that the bias as of now is towards the Bulls. For today, the Bulls need to overcome the levels of 7455 to maintain their upwards momentum whereas the Bears need to breach the levels of 7300 to regain their lost grounds.

2) The stochastics continue to remain in the neutral zone and point horizontal.

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

Nifty - 04 Jun 2014 - Test of resistances

Nifty stays Bullish despite presence of resistances ahead. Buy on dips mode persists.

As discussed yesterday, we say "Bulls were back" in business as the RBI event turned into a non event actually and could not stir the sentiment apart from the usual event day volatility. The Nifty opened with a positive gap up of 13 points at 7375 and maintained its poise before the event. The volatility induced by the RBI announcement could stir the Nifty in a range of about 50 points as the Nifty dipped from 7380 to 7342 and recovered from there to make a new intraday high of 7425 before closing at 7416 with a gain of 53 points over the previous close. None of our trading plans triggered and we did not participate in the volatile trade.

1) The Elder Ray readings : Bull Power rises from +134 to +164 Bear Power reduces from +5 to +82 indicating that the Bulls are gaining in strength as of now. For today, the Bulls need to overcome the levels of 7455 to maintain their upwards momentum whereas the Bears need to breach the levels of 7285 to regain their lost grounds.

2) The stochastics are in the neutral zone and are pointing upwards.

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

Nifty - 03 Jun 2014 - Bulls are back

On the eve of RBI monetary policy, Bulls regain their advantage. Volatility may rise.

On 30th May, we had suggested that the Nifty was "Sniffing downwards", and the Nifty which opened with a 20 point positive gap up at 7255 went down in a freak trade at 7118 and recovered from there to close at 7230 with a loss of 6 points. After five consecutive sessions of losses, we were expecting some green yesterday, and the Bulls obliged. The Nifty opened with a positive gap of 34 points, filled the gap in the first 15 minutes of trade and then kept on rising for the entire trading session closing near the highs of the day. We could not update our views on this blog as we were traveling, neither did we trade.

1) The Elder Ray readings : Bull Power rises from +59 to +134 Bear Power reduces from -95 to +5 indicating that the Bears have not been able to sustain in their safe zone even for a day. For today, the Bulls need to overcome the levels of 7390 to maintain their upwards momentum whereas the Bears need to breach the levels of 7255 to regain their lost grounds.

2) The stochastics are in the neutral zone and are pointing upwards.

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

Nifty - 30 May 2014 - Sniffing downwards

At end of month, Nifty is looking to fall away. Bearish engulf forming on the weekly.

Just on Wednesday we had suggested "Bulls losing momentum" and yesterday it was all "Expiry Jitters" on the bourses. The Nifty opened with a negative gap down of 13 points at 7317 and made a quick high of 7325 where the upward move had got thwarted on the earlier day too. Once the Nifty could not overcome this level, the Bears took charge and the Nifty slowly but surely started to slip. Once the levels of 6270 were breached, there was no looking back and the Nifty went on a spiraling fall. The fall got arrested in our identified support zone of 7240 7210 and the Nifty made a low of 7224 before closing at 7236. The Nifty has now entered the Sell on Rise mode.

1) The Elder Ray readings : Bull Power reduces from +138 to +115 Bear Power rises from +96 to +14 indicating that the Bears are nearing to regaining their safe zone. For today, the Bulls need to overcome the levels of 7330 to maintain their upwards momentum whereas the Bears need to breach the levels of 7215 to regain their lost grounds.

2) The stochastics are in the neutral zone and are pointing downwards.

3) The Nifty has closed below its 8EMA(7270) but has closed above its 13EMA(7210) and its 21EMA(7117). However, the Nifty has closed above all its key DMAs.

Nifty - 29 May 2014 - Expiry Jitters

Nifty threatens to turn volatile on expiry day by showing NR7 day on its eve.

As discussed yesterday, we saw "Bulls losing momentum" on the Nifty, although they did defend the 7300 level decisively, but they could not take out the 7350 level even. The Nifty opened with a positive gap up of 7 points at 7325 and then gyrated for the entire trading session within a narrow range of 42 points between 7303 on the lower side and 7345 on the higher side, before closing at 7330 with a gain of 12 points over the previous close. Thus, the Bulls although maintaining their advantage, are clearly losing on the momentum and need to pick up quickly now.

1) The Elder Ray readings : Bull Power reduces from +187 to +138 Bear Power also reduces from +89 to +96 indicating that the Bulls are still in control of the Nifty. For today, the Bulls need to overcome the levels of 7365 to maintain their upwards momentum whereas the Bears need to breach the levels of 7225 to regain their lost grounds.

2) The stochastics continue to hover just below the overbought zone and continue to point flat.

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

Nifty - 28 May 2014 - Bulls losing momentum

Bulls protect previous day lows, but could not take out previous day's highs either.

As discussed yesterday, it was "Bullish yet turbulent" on the Nifty all through the trading session yesterday. The Nifty opened positive with a gap up of 4 points at 7363 and made a quick high of 7373 from where there was all round profit booking and the Nifty slipped below 7310 within the first few minutes of trade. A rebound attempt from thereon got thwarted around 7345 and the Nifty then slipped back to below 7300 and made a low of 7275 before the afternoon. That low got tested a couple of more times during the day and Bulls were able to hold that lows. The Nifty finally closed at 7318 making into what is known as a inside day, a consolidation indication.

1) The Elder Ray readings : Bull Power reduces from +340 to +187 Bear Power rises from +105 to +89 indicating that though the Bulls are losing momentum, the Bears are yet to make most out of this opportunity. For today, the Bulls need to overcome the levels of 7395 to maintain their upwards momentum whereas the Bears need to breach the levels of 7205 to regain their lost grounds.

2) The stochastics keep on hovering just below the overbought zone and pointing flat.

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

Nifty - 27 May 2014 - Bullish despite turbulence

Nifty shocks after attempting new highs, shakes out weak bulls yet stays Bullish.

As discussed yesterday, the "Expiry week" started on a bullish note as the Nifty opened with a huge 62 point gap up at 7429 and traded bullish for the entire morning session. During this period, the Nifty crossed our identified resistance zone around 7470 to make a high of 7504, just 60 points short of the all time high of 7564. However, in the afternoon session, the Nifty got top heavy and a sell off saw the Nifty plunge below our identified support zone around 7310 to make a low of 7269, from where, in the last hour of trade, the Nifty regained 90 points to close at 7359 with a loss of just 8 points from its previous close. To be frank, we did not dare to take up any trade in this volatile session, where any sort of stop losses got hit before one could blink.

1) The Elder Ray readings : Bull Power rises from +250 to +340 Bear Power also rises from +163 to +105 indicating that the Bears are recouping whilst the Bulls retain control over the Nifty. For today, the Bulls need to overcome the levels of 7540 to maintain their upwards momentum whereas the Bears need to breach the levels of 7195 to regain their lost grounds.

2) The stochastics continue to hover just below the overbought zone indicating room for an upwards move.

3) The Nifty keeps on closing above all its key EMAs and also above all its key DMAs.

Nifty - 26 May 2014 - Bullish expiry week ahead

At the start of expiry week, Bulls hold sway over Nifty. New highs may be attempted.

We have been "off the blog" for the last 10 days or so, due to some technical issues with our blogger account. However, we have not been out of trade and have had some really lucrative trades during this period.

As discussed earlier, "Bulls have retained advantage" since then, although there was some turbulence in between, but it was handled well by the Bulls.

1) The Elder Ray readings : Bull Power rises from +228 to +250 Bear Power also rises a bit from +166 to +163 indicating the strength of the Bullish hold on the Nifty. For today, the Bulls need to overcome the levels of 7420 to maintain their upwards momentum whereas the Bears need to breach the levels of 7165 to regain their lost grounds.

2) The stochastics are below the overbought zone and are pointing upwards.

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

Nifty - 15 May 2014 - Bulls retain advantage

Nifty makes an inside day, closing as flat as possible, keeping bulls at advantage.

As discussed yesterday, it was Advantage Bulls on the Nifty, as although the Bulls did not take out the previous day's highs, they very well defended the previous day's lows and were able to close the day flat, retaining their advantage. The Nifty opened with a mild positive gap up of 3 points at 6112 and then lingered almost aimlessly within a range of 62 points making a high of 7142 and a low of 7081 before closing the day flat at 7109. We did not trade as none of our trading plans got triggered.

1) The Elder Ray readings : Bull Power reduces from +352 to +281 Bear Power rises from +247 to +220 indicating that though the Bulls have released a bit, their foot is still firm on the accelerator. For today, the Bulls need to overcome the levels of 7185 to maintain their upwards momentum whereas the Bears need to breach the levels of 6895 to regain their lost grounds.

2) The stochastics continue to remain in the overbought zone with no sign of coming down.

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

Nifty - 14 May 2014 - It is advantage Bulls

Nifty opens gap up and retains the gap in a choppy session. Bullish volatility on.

As discussed yesterday, the Bulls followed up on their buying spree which has started since Friday. The Nifty opened with a positive gap up of a whopping 66 points at 7080 and maintained that gap throughout the trading session. The Nifty made a high of 7172 and a low of 7067 before closing at 7109 in a highly volatile session which saw a drop of more than 120 points in the Nifty at one point of time in a highly upwardly trending market. We took a trade on the long side and could book out with a profit of 80 points.

1) The Elder Ray readings : Bull Power rises from +248 to +352 Bear Power reduces from +91 to +247 indicating the strong grip of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 7220 to maintain their upwards momentum whereas the Bears need to breach the levels of 6860 to regain their lost grounds.

2) Both the stochastics have now reached the overbought zone.

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