Nifty's consolidation continues as it finds roadblocks yet again. Rangebound yet.
As discussed yesterday, we found Bullish undertones on the Nifty, right at the start of the trading session. The Nifty opened with a positive gap up of 28 points at 6532 and within a few minutes was threatening the previous highs of 6565, as was expected. The Nifty did make a new high at 6575 and then retreated. The Nifty then slowly and gradually made a low of 6498 before closing at 6517. We took a trade with two lots on the short side and could book a combined profit of 70 points on that trade.
1) The Elder Ray readings : Bull Power rises from +116 to +156 Bear Power reduces from +30 to +79 indicating that the Bulls carry on controlling the Nifty as the Bears weakness continues. For today, the Bulls need to overcome the levels of 6585 to maintain their upwards momentum whereas the Bears need to breach the levels of 6440 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 risen with the Nifty remaining stagnant indicating indecision amongst the traders. The MACD continues to rise, but the histogram continues to reduce, yet remain above the zero line. The ADX is suggesting resumption of the Bullish momentum. The Parabolic SAR continues with its Buy signal, but its SL remains stuck at 6433.
5) Considering the above, our trading plan for the day is as under.
a) Around 6475 we will open fresh long positions with a SL of 6455 and a target of 6555. We will add to these long positions only above 6585.
b) Around 6560 we will open fresh short positions with a SL of 6585 and a target of 6485. We will add to these short positions only below 6455.
Happy Trading !!!
Buy call on AMTEKINDIA hit its target on 18 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 found Bullish undertones on the Nifty, right at the start of the trading session. The Nifty opened with a positive gap up of 28 points at 6532 and within a few minutes was threatening the previous highs of 6565, as was expected. The Nifty did make a new high at 6575 and then retreated. The Nifty then slowly and gradually made a low of 6498 before closing at 6517. We took a trade with two lots on the short side and could book a combined profit of 70 points on that trade.
1) The Elder Ray readings : Bull Power rises from +116 to +156 Bear Power reduces from +30 to +79 indicating that the Bulls carry on controlling the Nifty as the Bears weakness continues. For today, the Bulls need to overcome the levels of 6585 to maintain their upwards momentum whereas the Bears need to breach the levels of 6440 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 risen with the Nifty remaining stagnant indicating indecision amongst the traders. The MACD continues to rise, but the histogram continues to reduce, yet remain above the zero line. The ADX is suggesting resumption of the Bullish momentum. The Parabolic SAR continues with its Buy signal, but its SL remains stuck at 6433.
5) Considering the above, our trading plan for the day is as under.
a) Around 6475 we will open fresh long positions with a SL of 6455 and a target of 6555. We will add to these long positions only above 6585.
b) Around 6560 we will open fresh short positions with a SL of 6585 and a target of 6485. We will add to these short positions only below 6455.
Happy Trading !!!
Buy call on AMTEKINDIA hit its target on 18 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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