Nifty remains rangebound amidst growing choppiness and dwindling volumes.
As discussed yesterday, we saw the Nifty's consolidation turn choppy. The Nifty opened with a negative gap down of 14 points at 6498 and traded sheepishly below 6500 for the first hour of trade. Then gave a sharp rise of more than 50 points in the next half hour, threatening a breakout. But then some profit booking set in and the Nifty again dipped below 6500 by late afternoon. Only to sharply rise in the dying minutes of trade to close in the positive by 5 points at 6517. None of our trading plans triggered and we were happy to watch the gyrations from the sidelines.
1) The Elder Ray readings : Bull Power reduces from +220 to +179 Bear Power rises from +152 to +120 indicating that the Bulls are still holding the control on the Nifty. For today, the Bulls need to overcome the levels of 6575 to maintain their upwards momentum whereas the Bears need to breach the levels of 6390 to regain their lost grounds.
2) The stochastics continue to remain 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 reduced with the rise in the Nifty indicating that the rise may find resistance. The MACD continues to point upwards, but the histogram is reducing yet in the positive. The ADX is suggesting a fall in the Bullish momentum and bottoming out of the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6395.
5) Considering the above, our trading plan for the day is as under.
a) Around 6555 we will open fresh short positions with a SL of 6575 and a target of 6490. We will add to these short positions only below 6460.
b) Around 6480 we will open fresh long positions with a SL of 6460 and a target of 6545. We will add to these long positions only above 6575.
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, we saw the Nifty's consolidation turn choppy. The Nifty opened with a negative gap down of 14 points at 6498 and traded sheepishly below 6500 for the first hour of trade. Then gave a sharp rise of more than 50 points in the next half hour, threatening a breakout. But then some profit booking set in and the Nifty again dipped below 6500 by late afternoon. Only to sharply rise in the dying minutes of trade to close in the positive by 5 points at 6517. None of our trading plans triggered and we were happy to watch the gyrations from the sidelines.
1) The Elder Ray readings : Bull Power reduces from +220 to +179 Bear Power rises from +152 to +120 indicating that the Bulls are still holding the control on the Nifty. For today, the Bulls need to overcome the levels of 6575 to maintain their upwards momentum whereas the Bears need to breach the levels of 6390 to regain their lost grounds.
2) The stochastics continue to remain 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 reduced with the rise in the Nifty indicating that the rise may find resistance. The MACD continues to point upwards, but the histogram is reducing yet in the positive. The ADX is suggesting a fall in the Bullish momentum and bottoming out of the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6395.
5) Considering the above, our trading plan for the day is as under.
a) Around 6555 we will open fresh short positions with a SL of 6575 and a target of 6490. We will add to these short positions only below 6460.
b) Around 6480 we will open fresh long positions with a SL of 6460 and a target of 6545. We will add to these long positions only above 6575.
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. Opened fresh intraday short position at 6555 with SL of 6575
ReplyDeleteSquared off short positions at 6505 booking a profit of 45 points
ReplyDeleteTrading plan(a) reached its target of 6490.
ReplyDeleteNow trading plan(b) has triggered but it is too late in the day. Not taking that trade.