Nifty consolidates after a huge up move & stays bullish but cautious at higher levels.
In our yesterday's post "Poised for a breakout", we had mentioned that the Bulls need to do more to keep the Bears at bay. The Bulls did a smart job by maintaining the Nifty well above the support zone around 6280 for the entire trading session. The Nifty opened with a 20 point positive gap up at 6341 and made a quick high of 6347 and then consolidated for the entire trading session, making a low of 6300 before closing at 6319 with a nett loss of just 1 point. None of our trading plans got triggered and we took to the sidelines for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +99 Bear Power reduces from +29 to +52 indicating that the Bulls are gaining power whereas the Bears are slipping gradually. For today, the Bulls need to surpass the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 in order to regain their lost grounds.
2) The stochastics are almost touching the overbought zone.
3) The Nifty continues to close above all its key EMAs as well as above all its key DMAs.
4) In the above chart, the volumes have remained stagnant with the Nifty also remaining stagnant, indicating a lack of further direction. The MACD continues to point upwards with the histogram growing in the positive. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR has now turned into a Buy signal with the initial SL placed at 6140.
5) Considering the above, our trading plan for the day is as under.
a) Around 6355 we will open fresh short positions with a SL of 6375 and a target of 6295. We will add to these short positions only below 6260.
b) Around 6280 we will open fresh long positions with a SL of 6260 and a target of 6345. We will add to these long positions only above 6375.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post "Poised for a breakout", we had mentioned that the Bulls need to do more to keep the Bears at bay. The Bulls did a smart job by maintaining the Nifty well above the support zone around 6280 for the entire trading session. The Nifty opened with a 20 point positive gap up at 6341 and made a quick high of 6347 and then consolidated for the entire trading session, making a low of 6300 before closing at 6319 with a nett loss of just 1 point. None of our trading plans got triggered and we took to the sidelines for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +99 Bear Power reduces from +29 to +52 indicating that the Bulls are gaining power whereas the Bears are slipping gradually. For today, the Bulls need to surpass the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 in order to regain their lost grounds.
2) The stochastics are almost touching the overbought zone.
3) The Nifty continues to close above all its key EMAs as well as above all its key DMAs.
4) In the above chart, the volumes have remained stagnant with the Nifty also remaining stagnant, indicating a lack of further direction. The MACD continues to point upwards with the histogram growing in the positive. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR has now turned into a Buy signal with the initial SL placed at 6140.
5) Considering the above, our trading plan for the day is as under.
a) Around 6355 we will open fresh short positions with a SL of 6375 and a target of 6295. We will add to these short positions only below 6260.
b) Around 6280 we will open fresh long positions with a SL of 6260 and a target of 6345. We will add to these long positions only above 6375.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty triggered our trading plan(b) opened fresh long position at 6282 with SL of 6260
ReplyDeleteTSL brought up to 6272 as Bulls are taking too long to come in here.
ReplyDeleteSquared off long position at 6295 with a mild profit of 13 points
ReplyDelete