Nifty tests supports and rises above 6300, just to test resistances yet again.
As discussed yesterday, the Nifty had returned back to neutral territory. However, the Bears were unable to breach the near term support zone and the Bulls then took over and crossed the psychological level of 6300. The Bulls, though were unable to cross the previous day's highs, after the Bears had breached the previous day's lows, albeit by just 3 points. The Nifty therefore stays within striking distance for both the parties. We took a trade on the short side as per our trading plan and could book a small profit of 15 points.
1) The Elder Ray readings : Bull Power reduces from +77 to +50 Bear Power rises from -3 to -14 indicating that despite the rise in the Nifty, the Bears have gained some further grounds. 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 6250 to maintain their downwards momentum.
2) The stochastics are just below the overbought zone and are pointing across each other.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that there could be roadblocks to this rise. The MACD continues to be positive, with the histogram growing in the positive territory. The ADX is showing a loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues to give out its Buy signal with the SL of 6148.
5) Considering the above, our trading plan for the day is as under.
a) Around 6345 we will open fresh short positions with a SL of 6365 and a target of 6275. We will add to these short positions only below 6245.
b) Around 6265 we will open fresh long positions with a SL of 6245 and a target of 6335. We will add to these long positions only above 6365.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty had returned back to neutral territory. However, the Bears were unable to breach the near term support zone and the Bulls then took over and crossed the psychological level of 6300. The Bulls, though were unable to cross the previous day's highs, after the Bears had breached the previous day's lows, albeit by just 3 points. The Nifty therefore stays within striking distance for both the parties. We took a trade on the short side as per our trading plan and could book a small profit of 15 points.
1) The Elder Ray readings : Bull Power reduces from +77 to +50 Bear Power rises from -3 to -14 indicating that despite the rise in the Nifty, the Bears have gained some further grounds. 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 6250 to maintain their downwards momentum.
2) The stochastics are just below the overbought zone and are pointing across each other.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that there could be roadblocks to this rise. The MACD continues to be positive, with the histogram growing in the positive territory. The ADX is showing a loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues to give out its Buy signal with the SL of 6148.
5) Considering the above, our trading plan for the day is as under.
a) Around 6345 we will open fresh short positions with a SL of 6365 and a target of 6275. We will add to these short positions only below 6245.
b) Around 6265 we will open fresh long positions with a SL of 6245 and a target of 6335. We will add to these long positions only above 6365.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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