Nifty rises above key moving averages as Bulls take a strong grip on the Nifty.
As discussed yesterday, on the Nifty, the Up move continued without volumes. The Nifty opened with a negative gap down of 15 points at 6141 and made a quick low at 6131 and continued its march towards our identified resistance zone of 6185 6200. The Nifty made a high of 6192 before closing at 6186 with a nett gain of 31 points. We took a trade on the short side and came out at cost at EOD.
1) The Elder Ray readings : Bull Power rises from +59 to +79 Bear Power reduces from +8 to +18 indicating that the Bulls are strengthening their grip on the Nifty. For today, the Bulls need to overcome the levels of 6205 to maintain their upwards momentum whereas the Bears need to breach the levels of 6125 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty has now closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes remain low with the rise in the Nifty indicating that the rise may not continue much further. The MACD continues to point upwards with the histogram rising in the positive. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 5965.
5) Considering the above, our trading plan for the day is as under.
a) Around 6225 we will open fresh short positions with a SL of 6245 and a target of 6150. We will add to these short positions only below 6125.
b) Around 6145 we will open fresh long positions with a SL of 6125 and a target of 6220. We will add to these long positions only above 6245.
Happy Trading !!!
Buy calls on NUCLEUS & DATAMATICS hit their targets on 24 Feb 2104
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, on the Nifty, the Up move continued without volumes. The Nifty opened with a negative gap down of 15 points at 6141 and made a quick low at 6131 and continued its march towards our identified resistance zone of 6185 6200. The Nifty made a high of 6192 before closing at 6186 with a nett gain of 31 points. We took a trade on the short side and came out at cost at EOD.
1) The Elder Ray readings : Bull Power rises from +59 to +79 Bear Power reduces from +8 to +18 indicating that the Bulls are strengthening their grip on the Nifty. For today, the Bulls need to overcome the levels of 6205 to maintain their upwards momentum whereas the Bears need to breach the levels of 6125 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty has now closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes remain low with the rise in the Nifty indicating that the rise may not continue much further. The MACD continues to point upwards with the histogram rising in the positive. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 5965.
5) Considering the above, our trading plan for the day is as under.
a) Around 6225 we will open fresh short positions with a SL of 6245 and a target of 6150. We will add to these short positions only below 6125.
b) Around 6145 we will open fresh long positions with a SL of 6125 and a target of 6220. We will add to these long positions only above 6245.
Happy Trading !!!
Buy calls on NUCLEUS & DATAMATICS hit their targets on 24 Feb 2104
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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