Nifty, having found support at 200DMA, is attempting a recovery. Resistances ahead.
As discussed yesterday, the Nifty had found support at 200DMA, and the Nifty opened with a mild positive gap up of 9 points at 6057. The Nifty then consolidated for almost the entire trading session in the range of 6045 6065 zone, making only one dip below 6040 to 6038, and then in the last 40 minutes of trade attempting a break out, making a high of 6081 before closing at 6073.
1) The Elder Ray readings : Bull Power rises from -17 to +7 Bear Power reduces from -89 to -35 indicating that both the Bulls and the Bears are in their respective territories as of now. For today, the Bulls need to overcome the levels of 6085 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6035 to maintain their downwards momentum.
2) The stochastics remain in the neutral zone.
3) The Nifty has closed below its 21EMA, at its 13EMA and above its 8EMA. It has also closed below its 50DMA and 100DMA, but above its 200DMA.
4) In the above chart, the volumes have reduced with the rise in the Nifty, indicating that the up move may get arrested. The MACD continues to evade the buy trigger and the histogram continues to remain in the negative. The ADX is suggesting a equilibrium amongst the bulls and the bears. The Parabolic SAR continues with its sell signal with the SL now at 6081.
5) Considering the above, our trading plan for the day is as under.
a) Around 6105 we will open fresh short positions with a SL of 6125 and a target of 6045. We will add to these short positions only below 6020.
b) Around 6040 we will open fresh long positions with a SL of 6020 and a target of 6095. We will add to these long positions only above 6125.
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 found support at 200DMA, and the Nifty opened with a mild positive gap up of 9 points at 6057. The Nifty then consolidated for almost the entire trading session in the range of 6045 6065 zone, making only one dip below 6040 to 6038, and then in the last 40 minutes of trade attempting a break out, making a high of 6081 before closing at 6073.
1) The Elder Ray readings : Bull Power rises from -17 to +7 Bear Power reduces from -89 to -35 indicating that both the Bulls and the Bears are in their respective territories as of now. For today, the Bulls need to overcome the levels of 6085 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6035 to maintain their downwards momentum.
2) The stochastics remain in the neutral zone.
3) The Nifty has closed below its 21EMA, at its 13EMA and above its 8EMA. It has also closed below its 50DMA and 100DMA, but above its 200DMA.
4) In the above chart, the volumes have reduced with the rise in the Nifty, indicating that the up move may get arrested. The MACD continues to evade the buy trigger and the histogram continues to remain in the negative. The ADX is suggesting a equilibrium amongst the bulls and the bears. The Parabolic SAR continues with its sell signal with the SL now at 6081.
5) Considering the above, our trading plan for the day is as under.
a) Around 6105 we will open fresh short positions with a SL of 6125 and a target of 6045. We will add to these short positions only below 6020.
b) Around 6040 we will open fresh long positions with a SL of 6020 and a target of 6095. We will add to these long positions only above 6125.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan(a) has triggered. Have opened fresh short position at 6115 with a SL at 6135.
ReplyDeleteBooked loss of 20 points as SL hit
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