Nifty realigns for a break out. Depends on how easily Bulls take out 6375 6390 zone.
As discussed yesterday, the Nifty has been hovering between supports & resistances, for quite a few trading sessions now. The Nifty traded in a similar fashion for the entire trading session, idling between 6285 and 6320 for the major part of the trading session. However, in the last hour of the trade, the Nifty broke the shackles of 6330 but could not overcome 6350 and closed at 6339 with a gain of 25 points. It would be interesting to watch how the Bulls tackle the 6375 6390 zone.
1) The Elder Ray readings : Bull Power rises from +65 to +74 Bear Power also rises from +32 to +11 indicating that though the Nifty is poised for a breakout, the Bears are not far behind. For today the Bulls need to overcome the levels of 6365 to maintain their upwards momentum whereas the Bears need to breach the levels of 6280 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.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD continues to point upwards with the histogram too growing in the positive zone. The ADX too is suggesting a rise in momentum for the Bulls. The Parabolic SAR continues to give out its Buy signal with the SL now shifted up to 6156.
5) Considering the above, our trading plan for the day is as under.
a) Around 6305 we will open fresh long positions with a SL of 6285 and a target of 6370. We will add to these long positions only above 6390.
b) Around 6375 we will open fresh short positions with a SL of 6390 and a target of 6310. We will add to these short positions only below 6285.
Happy Trading !!!
Buy calls on MAHINDUGIN & LOVABLE hit their targets on 22 Jan 2014
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 has been hovering between supports & resistances, for quite a few trading sessions now. The Nifty traded in a similar fashion for the entire trading session, idling between 6285 and 6320 for the major part of the trading session. However, in the last hour of the trade, the Nifty broke the shackles of 6330 but could not overcome 6350 and closed at 6339 with a gain of 25 points. It would be interesting to watch how the Bulls tackle the 6375 6390 zone.
1) The Elder Ray readings : Bull Power rises from +65 to +74 Bear Power also rises from +32 to +11 indicating that though the Nifty is poised for a breakout, the Bears are not far behind. For today the Bulls need to overcome the levels of 6365 to maintain their upwards momentum whereas the Bears need to breach the levels of 6280 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.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD continues to point upwards with the histogram too growing in the positive zone. The ADX too is suggesting a rise in momentum for the Bulls. The Parabolic SAR continues to give out its Buy signal with the SL now shifted up to 6156.
5) Considering the above, our trading plan for the day is as under.
a) Around 6305 we will open fresh long positions with a SL of 6285 and a target of 6370. We will add to these long positions only above 6390.
b) Around 6375 we will open fresh short positions with a SL of 6390 and a target of 6310. We will add to these short positions only below 6285.
Happy Trading !!!
Buy calls on MAHINDUGIN & LOVABLE hit their targets on 22 Jan 2014
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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