The recent upmove got arrested, tested supports and now seems ready to bounce.
As discussed on Monday, the upmove on the Nifty got arrested. The Nifty opened flat, made a lower high at 6725 (against the previous day's high of 6742), then made a lower low at 6650 (against the previous day's low of 6685) and closed flat at 6695 with a gain of just 1 point. Now to resume the uptrend it has to hold this low of 6650 and make a higher high above 6742. Till then the Nifty may remain in a narrow trading range and be susceptible to a larger correction. We took a trade on the long side, and booked out with a mild profit of 12 points as we did not want to wait out in the 2:30 factor volatility.
1) The Elder Ray readings : Bull Power reduces from +101 to +77 Bear Power rises from +45 to +2 indicating that the Bears have almost regained safety, however, Bulls are still the stronger side. For today, the Bulls need to overcome the levels of 6735 to maintain their upwards momentum whereas the Bears need to breach the levels of 6655 to regain their lost grounds.
2) The stochastics have just moved out of the overbought zone and are slightly below that.
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 Nifty remaining stagnant, indicating lack of conviction on either side. The MACD is just about to give a Sell signal but has not given it yet. The ADX is also suggesting a loss of momentum for the Bulls and a rise in momentum for the Bears, but is still favoring the Bulls. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6774.
5) Considering the above, our trading plan for the day is as under.
a) Around 6740 we will open fresh short positions with a SL of 6765 and a target of 6660. We will add to these short positions only below 6635.
b) Around 6655 we will open fresh long positions with a SL of 6635 and a target of 6730. We will add to these long positions only above 6765.
Happy Trading !!!
Buy call on INDHOTEL hit its target of 07 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 on Monday, the upmove on the Nifty got arrested. The Nifty opened flat, made a lower high at 6725 (against the previous day's high of 6742), then made a lower low at 6650 (against the previous day's low of 6685) and closed flat at 6695 with a gain of just 1 point. Now to resume the uptrend it has to hold this low of 6650 and make a higher high above 6742. Till then the Nifty may remain in a narrow trading range and be susceptible to a larger correction. We took a trade on the long side, and booked out with a mild profit of 12 points as we did not want to wait out in the 2:30 factor volatility.
1) The Elder Ray readings : Bull Power reduces from +101 to +77 Bear Power rises from +45 to +2 indicating that the Bears have almost regained safety, however, Bulls are still the stronger side. For today, the Bulls need to overcome the levels of 6735 to maintain their upwards momentum whereas the Bears need to breach the levels of 6655 to regain their lost grounds.
2) The stochastics have just moved out of the overbought zone and are slightly below that.
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 Nifty remaining stagnant, indicating lack of conviction on either side. The MACD is just about to give a Sell signal but has not given it yet. The ADX is also suggesting a loss of momentum for the Bulls and a rise in momentum for the Bears, but is still favoring the Bulls. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6774.
5) Considering the above, our trading plan for the day is as under.
a) Around 6740 we will open fresh short positions with a SL of 6765 and a target of 6660. We will add to these short positions only below 6635.
b) Around 6655 we will open fresh long positions with a SL of 6635 and a target of 6730. We will add to these long positions only above 6765.
Happy Trading !!!
Buy call on INDHOTEL hit its target of 07 Apr 2014
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 and have opened fresh short position at 6740 with a SL of 6765
ReplyDeleteSL Hit at 6765 booked out with a loss of 25 points
ReplyDelete