After topping out and in a truncated trading week, Nifty may enter consolidation mode.
As discussed on Friday, the Nifty did confirm the early signs of topping out with a negative gap down opening of 38 points at 6758. The Nifty then traded sluggishly within a confined range between 6743 on the down side and on the higher side around 6775 for most of the trading session. The late afternoon attempt to breakout of this range got thwarted almost immediately and the Nifty after making a intraday high of 6789 closed at 6776 with a loss of 20 points against the previous close. We took a trade on the long side as per our trading plan and could book a profit of 30 points.
1) The Elder Ray readings : Bull Power reduces from +131 to +89 Bear Power rises from +90 to +43 indicating that the Bears are attempting a recovery. For today, the Bulls need to overcome the levels of 6805 to maintain their upwards momentum whereas the Bears need to breach the levels of 6710 to regain their lost grounds.
2) The stochastics continue to relish 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 decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to float around the top with the histogram remaining minutely above the zero line. The ADX is suggesting a fall in the Bullish momentum and a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6660.
5) Considering the above, our trading plan for the day is as under.
a) Around 6745 we will open fresh long positions with a SL of 6725 and a target of 6805. We will add to these long positions only above 6830.
b) Around 6810 we will open fresh short positions with a SL of 6830 and a target of 6750. We will add to these short positions only below 6725.
Happy Trading !!!
Buy call on BEML hit its target on 11 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 Friday, the Nifty did confirm the early signs of topping out with a negative gap down opening of 38 points at 6758. The Nifty then traded sluggishly within a confined range between 6743 on the down side and on the higher side around 6775 for most of the trading session. The late afternoon attempt to breakout of this range got thwarted almost immediately and the Nifty after making a intraday high of 6789 closed at 6776 with a loss of 20 points against the previous close. We took a trade on the long side as per our trading plan and could book a profit of 30 points.
1) The Elder Ray readings : Bull Power reduces from +131 to +89 Bear Power rises from +90 to +43 indicating that the Bears are attempting a recovery. For today, the Bulls need to overcome the levels of 6805 to maintain their upwards momentum whereas the Bears need to breach the levels of 6710 to regain their lost grounds.
2) The stochastics continue to relish 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 decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to float around the top with the histogram remaining minutely above the zero line. The ADX is suggesting a fall in the Bullish momentum and a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6660.
5) Considering the above, our trading plan for the day is as under.
a) Around 6745 we will open fresh long positions with a SL of 6725 and a target of 6805. We will add to these long positions only above 6830.
b) Around 6810 we will open fresh short positions with a SL of 6830 and a target of 6750. We will add to these short positions only below 6725.
Happy Trading !!!
Buy call on BEML hit its target on 11 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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