Nifty makes a higher high but also a lower low & closes in red. Seems profit booking.
As discussed yesterday, the Bulls continued with their up move. The Nifty opened with a positive gap up of 20 points at 6772 and made a quick all time high of 6777 (just 3 points away from our identified resistance of 6780) before starting to drift downwards consistently. The Nifty kept on breaching the day's lows throughout the day, till it made a low of 6697. In the last 30 minutes of trade, the Bulls re-entered and the Nifty soared to get near to its highs. However, it managed only to close below its previous close by 16 points at 6736. We got entangled in this whipsaw and our stop losses restricted our loss to just 22 points in two trades.
1) The Elder Ray readings : Bull Power reduces from +150 to +145 Bear Power rises from +110 to +66 indicating that the Bears are gaining some grounds though the Bulls are still holding the reigns on the Nifty. For today, the Bulls need to overcome the levels of 6795 to maintain their upwards momentum whereas the Bears need to breach the levels of 6650 to regain their lost grounds.
2) The stochastics are still in the overbought zone, but are tilting downwards.
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 remained high with the fall in the Nifty indicating that the fall may continue. The MACD continues to float at the top, with the histogram staying positive but diminishing. The ADX is suggesting a fall in the Bullish momentum and a rise in the Bearish momentum, but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 6686.
5) Considering the above, our trading plan for the day is as under.
a) Around 6700 we will open fresh long positions with a SL of 6680 and a target of 6765. We will add to these long positions only above 6790.
b) Around 6770 we will open fresh short positions with a SL of 6790 and a target of 6710. We will add to these short positions only below 6680.
Happy Trading !!!
Buy call on INDIACEM hit its target of 03 Apr 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, the Bulls continued with their up move. The Nifty opened with a positive gap up of 20 points at 6772 and made a quick all time high of 6777 (just 3 points away from our identified resistance of 6780) before starting to drift downwards consistently. The Nifty kept on breaching the day's lows throughout the day, till it made a low of 6697. In the last 30 minutes of trade, the Bulls re-entered and the Nifty soared to get near to its highs. However, it managed only to close below its previous close by 16 points at 6736. We got entangled in this whipsaw and our stop losses restricted our loss to just 22 points in two trades.
1) The Elder Ray readings : Bull Power reduces from +150 to +145 Bear Power rises from +110 to +66 indicating that the Bears are gaining some grounds though the Bulls are still holding the reigns on the Nifty. For today, the Bulls need to overcome the levels of 6795 to maintain their upwards momentum whereas the Bears need to breach the levels of 6650 to regain their lost grounds.
2) The stochastics are still in the overbought zone, but are tilting downwards.
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 remained high with the fall in the Nifty indicating that the fall may continue. The MACD continues to float at the top, with the histogram staying positive but diminishing. The ADX is suggesting a fall in the Bullish momentum and a rise in the Bearish momentum, but is still favoring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now raised to 6686.
5) Considering the above, our trading plan for the day is as under.
a) Around 6700 we will open fresh long positions with a SL of 6680 and a target of 6765. We will add to these long positions only above 6790.
b) Around 6770 we will open fresh short positions with a SL of 6790 and a target of 6710. We will add to these short positions only below 6680.
Happy Trading !!!
Buy call on INDIACEM hit its target of 03 Apr 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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