Bulls keep the Nifty defying gravity, but need to cross the hump of 6360 & sustain it.
As discussed on Tuesday, the Nifty hit resistance yesterday and after opening with a positive gap up of 31 points at 6328, the Nifty traded bearishly in a consolidation mode for most of the trading session. The Nifty breached the levels of 6300 to make lows of 6293 and then 6288. However, the selling dried up at that point and in the late afternoon session, the Nifty recovered its losses and cleared the intraday high of 6334 to make a new intraday high of 6336 before closing at 6328, thus forming a doji in a highly critical zone. We had taken a trading holiday yesterday.
1) The Elder Ray readings : Bull Power rises from +114 to +128 Bear Power reduces from +28 to +80 indicating that the Bulls continue to strengthen their grip on the Nifty. For today, the Bulls need to overcome the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6220 to regain their lost grounds.
2) The stochastics continue to remain 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 up move may continue. The MACD continues to point upwards with the histogram too rising in the positive. The ADX is suggesting a rise in the Bullish momentum and a fall in the Bearish momentum, but both are again approaching unsustainable levels. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6123.
5) Considering the above, our trading plan for the day is as under.
a) Around 6300 we will open fresh long positions with a SL of 6275 and a target of 6355. We will add to these long positions only above 6380.
b) Around 6360 we will open fresh short positions with a SL of 6380 and a target of 6305. We will add to these short positions only below 6275.
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 on Tuesday, the Nifty hit resistance yesterday and after opening with a positive gap up of 31 points at 6328, the Nifty traded bearishly in a consolidation mode for most of the trading session. The Nifty breached the levels of 6300 to make lows of 6293 and then 6288. However, the selling dried up at that point and in the late afternoon session, the Nifty recovered its losses and cleared the intraday high of 6334 to make a new intraday high of 6336 before closing at 6328, thus forming a doji in a highly critical zone. We had taken a trading holiday yesterday.
1) The Elder Ray readings : Bull Power rises from +114 to +128 Bear Power reduces from +28 to +80 indicating that the Bulls continue to strengthen their grip on the Nifty. For today, the Bulls need to overcome the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6220 to regain their lost grounds.
2) The stochastics continue to remain 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 up move may continue. The MACD continues to point upwards with the histogram too rising in the positive. The ADX is suggesting a rise in the Bullish momentum and a fall in the Bearish momentum, but both are again approaching unsustainable levels. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6123.
5) Considering the above, our trading plan for the day is as under.
a) Around 6300 we will open fresh long positions with a SL of 6275 and a target of 6355. We will add to these long positions only above 6380.
b) Around 6360 we will open fresh short positions with a SL of 6380 and a target of 6305. We will add to these short positions only below 6275.
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 (b) has triggered and have opened fresh short position at 6360 with SL of 6380
ReplyDeleteBooked out at 6380 with a loss of 20 points
ReplyDelete