Bulls cross intermediate resistance levels but need to capitalize and keep moving up.
As discussed yesterday, the Nifty which was running into resistances, crossed the down gap levels at 6110 within the first hour of trade and stayed above that for the entire trading session. On the other hand, the Bulls could not sustain much above those resistance levels and the Nifty after making a high of 6142 saw some profit booking and closed at 6127 with a gain of 54 points. We took a trade on the short side and booked a loss of 20 points on that trade.
1) The Elder Ray readings : Bull Power rises from +7 to +61 Bear Power reduces from -35 to -14 indicating that the Bulls now have a upper hand but the Bears are not far behind. For today, the Bulls need to overcome the levels of 6150 to maintain their upwards momentum whereas the Bears need to breach the levels of 6065 to maintain their downwards momentum.
2) The fast stochastics have already reached the overbought zone, but the slow stochastics are lagging behind indicating more room for an up move.
3) The Nifty has now closed above all its key EMAs and also above its 200DMA. It has however, closed below its 50DMA and 100DMA.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD has now triggered a buy signal with the histogram also turning positive. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR turns into a Buy signal with the initial SL at 5933.
5) Considering the above, our trading plan for the day is as under.
a) Around 6090 we will open fresh long positions with a SL of 6070 and a target of 6165. We will add to these long positions only above 6185.
b) Around 6170 we will open fresh short positions with a SL of 6185 and a target of 6100. We will add to these short positions only below 6070.
Happy Trading !!!
Buy call on HDFC hit its target of 18 Feb 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 which was running into resistances, crossed the down gap levels at 6110 within the first hour of trade and stayed above that for the entire trading session. On the other hand, the Bulls could not sustain much above those resistance levels and the Nifty after making a high of 6142 saw some profit booking and closed at 6127 with a gain of 54 points. We took a trade on the short side and booked a loss of 20 points on that trade.
1) The Elder Ray readings : Bull Power rises from +7 to +61 Bear Power reduces from -35 to -14 indicating that the Bulls now have a upper hand but the Bears are not far behind. For today, the Bulls need to overcome the levels of 6150 to maintain their upwards momentum whereas the Bears need to breach the levels of 6065 to maintain their downwards momentum.
2) The fast stochastics have already reached the overbought zone, but the slow stochastics are lagging behind indicating more room for an up move.
3) The Nifty has now closed above all its key EMAs and also above its 200DMA. It has however, closed below its 50DMA and 100DMA.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue. The MACD has now triggered a buy signal with the histogram also turning positive. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR turns into a Buy signal with the initial SL at 5933.
5) Considering the above, our trading plan for the day is as under.
a) Around 6090 we will open fresh long positions with a SL of 6070 and a target of 6165. We will add to these long positions only above 6185.
b) Around 6170 we will open fresh short positions with a SL of 6185 and a target of 6100. We will add to these short positions only below 6070.
Happy Trading !!!
Buy call on HDFC hit its target of 18 Feb 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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