Nifty finds resistance at 6560 again and gives up. Short term correction may set in.
As discussed yesterday, Nifty's choppy consolidation continued, for most part of the trading session. The Nifty opened with a negative gap down of 25 points at 6492 and immediately within the first 5 minutes of trade went up by about 50 points to 6540. For the next hour the Nifty then traded sheepishly in a 10 point zone. The Nifty then, mocked a breakout, rising to 6561, and again traded in a 15 point zone for the next couple of hours. In the last hour of trade however, the Nifty found some serious selling and gave up all the gains to make a new intraday low of 6477 before closing at 6493. We took a trade on the short side and booked out with a profit of 45 points.
1) The Elder Ray readings : Bull Power reduces from +179 to +176 Bear Power rises from +120 to +91 indicating that the Bulls are retaining their grip over the Nifty as the Bears are trying to crawl back into contention. For today, the Bulls need to overcome the levels of 6580 to maintain their upwards momentum whereas the Bears need to breach the levels of 6405 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 remains rangebound amidst growing choppiness and dwindling volumes.
As discussed yesterday, we saw the Nifty's consolidation turn choppy. The Nifty opened with a negative gap down of 14 points at 6498 and traded sheepishly below 6500 for the first hour of trade. Then gave a sharp rise of more than 50 points in the next half hour, threatening a breakout. But then some profit booking set in and the Nifty again dipped below 6500 by late afternoon. Only to sharply rise in the dying minutes of trade to close in the positive by 5 points at 6517. None of our trading plans triggered and we were happy to watch the gyrations from the sidelines.
1) The Elder Ray readings : Bull Power reduces from +220 to +179 Bear Power rises from +152 to +120 indicating that the Bulls are still holding the control on the Nifty. For today, the Bulls need to overcome the levels of 6575 to maintain their upwards momentum whereas the Bears need to breach the levels of 6390 to regain their lost grounds.
2) The stochastics continue to remain well and deep into the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Nifty unable to sustain highs, may turn choppy during this consolidation phase.
As discussed yesterday, we saw the Nifty stay bullish despite corrections, during the trading session. The Nifty opened flat and started to rise in the first hour of trade. However, at 6562, which was the previous day's high, the attempt got thwarted and the Nifty started to come off. During the choppy session, the Nifty then kept on making lower highs and lower lows. The Nifty made a low of 6494 before closing at 6512. Our trading plan triggered a buy at 6500, however, that trigger came too late in the day for initiating any trade.
1) The Elder Ray readings : Bull Power reduces from +248 to +220 Bear Power rises from +173 to +152 indicating that the Bulls are still strong and that the Bears are trying to crawl back to safety. For today, the Bulls need to overcome the levels of 6595 to maintain their upwards momentum whereas the Bears need to breach the levels of 6370 to regain their lost grounds.
2) The stochastics are still well and deep into the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Nifty consolidates at the top end of the range. Expect to remain Bullish as yet.
As discussed yesterday, the Nifty has been venturing in unchartered territories. The Nifty having opened with a negative gap down of 35 points, dipped a bit lower right in the first few minutes of trade and made a low point of 6487. Thereafter the Nifty traded with an increased volatility in the range of 6545 and 6495 all through out the trading session. In the last hour of trade, the Nifty attempted a break out which got thwarted at 6562 and the Nifty closed at 6537 with a gain of 11 points over the previous close, but 25 points away from the high point of the day. We did not take any trade during this trading session.
1) The Elder readings : Bull Power reduces from +261 to +248 Bear Power also reduces from +136 to +173 indicating that the Bulls have taken some profits but are still holding the Bears at bay. For today, the Bulls need to overcome the levels of 6595 to maintain their upwards momentum whereas the Bears need to breach the levels of 6360 to regain their lost grounds.
2) The stochastics continue to remain well and deep into the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Nifty gives a highest close & then another. Bulls get a stranglehold but need caution.
On Thursday, we had expressed that the Nifty was nearing final roadblocks. The Nifty since then has risen 140 points and has closed at 6527 after making a high of 6538. The volumes during this rise have been exceptionally high and speaks of the stranglehold that the Bulls have on the Nifty. Having said that, the Bulls need to keep up their tempo or else there could be a Bearish backlash just around the corner. We as intraday traders, need to keep a look out for intraday opportunities.
1) The Elder Ray readings : Bull Power rises from +171 to +261 Bear Power reduces from +104 to +136 indicating that the Bears are slipping further as the Bullish stranglehold gets tighter. For today, the Bulls need to overcome the levels of 6580 to maintain their upwards momentum whereas the Bears need to breach the levels of 6300 to regain their lost grounds.
2) The stochastics continue to be well and deep into the overbought zone.
3) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
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