Nifty makes yet another all time high. Bulls clutch on to their gains. More gains ahead.
As discussed yesterday, the Bullish stranglehold continued on the Nifty. Although the Nifty opened with a negative gap down of 34 points at 6550, the opening few minutes saw the Nifty reach 6590 in no time at all. The Nifty then traded sluggishly within a zone of 15 to 20 points all through the trading session. The Nifty closed at 6590 after making a new all time high at 6596. The immediate spike in the Nifty could not trigger our intended trade on the long side, though our trading plan had triggered.
1) The Elder Ray readings : Bull Power reduces from +124 to +111 Bear Power also reduces from +43 to +60 indicating the strong hold of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 6615 to maintain their upwards momentum whereas the Bears need to breach the levels of 6505 to regain their lost grounds.
2) The stochastics continue to languish 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 with pointing flat and the histogram continues to weaken although staying above the zero line. The ADX is suggesting a loss of momentum for the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 6504.
5) Considering the above, our trading plan for the day is as under.
a) Around 6550 we will open fresh long positions with a SL of 6530 and a target of 6625. We will add to these long positions only above 6655.
b) Around 6635 we will open fresh short positions with a SL of 6655 and a target of 6560. We will add to these short positions only below 6530.
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, the Bullish stranglehold continued on the Nifty. Although the Nifty opened with a negative gap down of 34 points at 6550, the opening few minutes saw the Nifty reach 6590 in no time at all. The Nifty then traded sluggishly within a zone of 15 to 20 points all through the trading session. The Nifty closed at 6590 after making a new all time high at 6596. The immediate spike in the Nifty could not trigger our intended trade on the long side, though our trading plan had triggered.
1) The Elder Ray readings : Bull Power reduces from +124 to +111 Bear Power also reduces from +43 to +60 indicating the strong hold of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 6615 to maintain their upwards momentum whereas the Bears need to breach the levels of 6505 to regain their lost grounds.
2) The stochastics continue to languish 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 with pointing flat and the histogram continues to weaken although staying above the zero line. The ADX is suggesting a loss of momentum for the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 6504.
5) Considering the above, our trading plan for the day is as under.
a) Around 6550 we will open fresh long positions with a SL of 6530 and a target of 6625. We will add to these long positions only above 6655.
b) Around 6635 we will open fresh short positions with a SL of 6655 and a target of 6560. We will add to these short positions only below 6530.
Happy Trading !!!
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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