Nifty unable to sustain highs, may turn choppy during this consolidation phase.
As discussed yesterday, we saw the Nifty stay bullish despite corrections, during the trading session. The Nifty opened flat and started to rise in the first hour of trade. However, at 6562, which was the previous day's high, the attempt got thwarted and the Nifty started to come off. During the choppy session, the Nifty then kept on making lower highs and lower lows. The Nifty made a low of 6494 before closing at 6512. Our trading plan triggered a buy at 6500, however, that trigger came too late in the day for initiating any trade.
1) The Elder Ray readings : Bull Power reduces from +248 to +220 Bear Power rises from +173 to +152 indicating that the Bulls are still strong and that the Bears are trying to crawl back to safety. For today, the Bulls need to overcome the levels of 6595 to maintain their upwards momentum whereas the Bears need to breach the levels of 6370 to regain their lost grounds.
2) The stochastics are still well and deep into 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 decreased with the fall in the Nifty, indicating that the fall may find support soon. The MACD continues to point upwards, but the histogram is stalling in its rise in the positive. The ADX is suggesting a fall in the bullish momentum, but the bearish momentum is too far from encouraging. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6353.
5) Considering the above, our trading plan for the day is as under.
a) Around 6470 we will open fresh long positions with a SL of 6450 and a target of 6535. We will add to these long positions only above 6570.
b) Around 6550 we will open fresh short positions with a SL of 6570 and a target of 6480. We will add to these short positions only below 6450.
Happy Trading !!!
Buy calls on DALMIABHA DLF ANANTRAJ PHOENIXLTD HAVELLS & WELCORP hit their targets on 11 Mar 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, we saw the Nifty stay bullish despite corrections, during the trading session. The Nifty opened flat and started to rise in the first hour of trade. However, at 6562, which was the previous day's high, the attempt got thwarted and the Nifty started to come off. During the choppy session, the Nifty then kept on making lower highs and lower lows. The Nifty made a low of 6494 before closing at 6512. Our trading plan triggered a buy at 6500, however, that trigger came too late in the day for initiating any trade.
1) The Elder Ray readings : Bull Power reduces from +248 to +220 Bear Power rises from +173 to +152 indicating that the Bulls are still strong and that the Bears are trying to crawl back to safety. For today, the Bulls need to overcome the levels of 6595 to maintain their upwards momentum whereas the Bears need to breach the levels of 6370 to regain their lost grounds.
2) The stochastics are still well and deep into 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 decreased with the fall in the Nifty, indicating that the fall may find support soon. The MACD continues to point upwards, but the histogram is stalling in its rise in the positive. The ADX is suggesting a fall in the bullish momentum, but the bearish momentum is too far from encouraging. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6353.
5) Considering the above, our trading plan for the day is as under.
a) Around 6470 we will open fresh long positions with a SL of 6450 and a target of 6535. We will add to these long positions only above 6570.
b) Around 6550 we will open fresh short positions with a SL of 6570 and a target of 6480. We will add to these short positions only below 6450.
Happy Trading !!!
Buy calls on DALMIABHA DLF ANANTRAJ PHOENIXLTD HAVELLS & WELCORP hit their targets on 11 Mar 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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