Nifty - 06 Mar 2014 - Nearing final roadblocks

Bulls keep the Nifty defying gravity, but need to cross the hump of 6360 & sustain it.

As discussed on Tuesday, the Nifty hit resistance yesterday and after opening with a positive gap up of 31 points at 6328, the Nifty traded bearishly in a consolidation mode for most of the trading session. The Nifty breached the levels of 6300 to make lows of 6293 and then 6288. However, the selling dried up at that point and in the late afternoon session, the Nifty recovered its losses and cleared the intraday high of 6334 to make a new intraday high of 6336 before closing at 6328, thus forming a doji in a highly critical zone. We had taken a trading holiday yesterday.

1) The Elder Ray readings : Bull Power rises from +114 to +128 Bear Power reduces from +28 to +80 indicating that the Bulls continue to strengthen their grip on the Nifty. For today, the Bulls need to overcome the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6220 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.

Nifty - 04 Mar 2014 - Nifty hits resistance

The Nifty pull back closes below previous day's low. May produce a down move.

As discussed yesterday, the Bulls maintained their stranglehold on the Nifty, but for just the morning hours of trade, as the Nifty kept upbeat but was unable to overcome the previous day's high of 6283 and the up move got thwarted at 6278 itself. From thereon, the Nifty came tumbling down to our identified support zone of 6245 6225 and found some temporary support. But once the Bears breached 6225, the Nifty went down till 6212 before closing at 6221. We lost 20 points in a long trade.

1) The Elder Ray readings : Bull Power reduces from +122 to +108 Bear Power rises from +67 to +43, indicating that the Bulls are still in the driver's seat and that the Bears have got to do much more here. For today, the Bulls need to overcome the levels of 6285 to maintain their upwards momentum whereas the Bears need to breach the levels of 6170 to regain their lost grounds.

2) The stochastics are looking to come down from the overbought zone.

3) The Nifty has still closed above all its key EMAs and also above all its key DMAs.

Nifty - 03 Mar 2014 - Bulls maintain stranglehold

The Bullish up move on Nifty inches ahead supported by positive global cues.

As discussed on Friday, the Bullish up move continued, on the Nifty. The Nifty opened with a negative gap down of 10 points at 6228, and immediately started flaring up, easily crossing 6250 threshold level and running into our identified resistance zone of 6265 6285. The Nifty then traded for the rest of the session within 6245 and 6260 before rising again in the dying moments of trade. The Nifty made a high of 6283 before closing at 6277.

1) The Elder Ray readings : Bull Power rises from +105 to +122 Bear Power reduces from +61 to +67 indicating that the Bulls are strengthening their grip whereas the Bears are getting marginalized now. For today, the Bulls need to overcome the levels of 6305 to maintain their upwards momentum whereas the Bears need to breach the levels of 6180 to regain their lost grounds.

2) The stochastics are well and deep into the overbought zone now.

3) The Nifty keeps on closing above all its key EMAs and also above all its key DMAs.