Nifty consolidates at the top of range, as indicators turn positive. Big move ahead.
Buy calls on GRANULES PHILIPCARB CENTURYPLY RSSOFTWARE AEGISCHEM SMLISUZU DEEPAKFERT & ABCIL hit their targets on 07 Jul 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, "Bulls had their advantage" and maintained it throughout the trading session, managing to keep the Nifty afloat, trading at the top end of the trading range. However, a breakout did not materialize, indicating some kind of resistance developing. The Nifty opened with a positive gap up of 29 points at 7780 and made a high in our identified resistance zone around 7785. The Nifty then had a small dip to 7760 initially, and later in the day at 7755 from where the Nifty recovered to make a high of 7792 before closing at 7787 with a gain of 36 points over its previous close. We took a trade on the short side and booked 25 points on that trade.
1) The Elder Ray readings : Bull Power rises from +140 to +150 Bear Power reduces from +43 to +113 indicating that the Bears have lost heavily in this narrow ranged trading session. For today, the Bulls need to overcome the levels of 7815 to maintain their upwards momentum whereas the Bears need to breach the levels of 7665 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 increased with the rise in the Nifty indicating that the rise may continue. The MACD has now given out its Buy signal with the histogram too turning positive. The ADX is also suggesting a rise in the Bullish momentum and a fall in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 7599.
5) Considering the above, our trading plan for the day is as under.
a) Around 7745 we will open fresh long positions with a SL of 7720 and a target of 7825. We will add to these long positions only above 7855.
b) Around 7835 we will open fresh short positions with a SL of 7855 and a target of 7755. We will add to these short positions only below 7720.
Happy Trading !!!
Buy calls on GRANULES PHILIPCARB CENTURYPLY RSSOFTWARE AEGISCHEM SMLISUZU DEEPAKFERT & ABCIL hit their targets on 07 Jul 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) got triggered and have opened fresh intraday long positions at 7745 with a SL of 7720
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