Nifty - 19 Mar 2014 - Retreating from roadblocks

Nifty's consolidation continues as it finds roadblocks yet again. Rangebound yet.

As discussed yesterday, we found Bullish undertones on the Nifty, right at the start of the trading session. The Nifty opened with a positive gap up of 28 points at 6532 and within a few minutes was threatening the previous highs of 6565, as was expected. The Nifty did make a new high at 6575 and then retreated. The Nifty then slowly and gradually made a low of 6498 before closing at 6517. We took a trade with two lots on the short side and could book a combined profit of 70 points on that trade.

1) The Elder Ray readings : Bull Power rises from +116 to +156 Bear Power reduces from +30 to +79 indicating that the Bulls carry on controlling the Nifty as the Bears weakness continues. For today, the Bulls need to overcome the levels of 6585 to maintain their upwards momentum whereas the Bears need to breach the levels of 6440 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 - 18 Mar 2014 - Bullish undertones on Nifty

Having tested support at 6430, Nifty closes above 6500. Now 6565 may be attempted.

As discussed on Friday, Choppiness continued into a correction on the Nifty. The Nifty opened low with a negative gap down of 46 points at 6447 and then traded bearishly for most of the trading session between 6465 and 6445. Briefly, the Nifty also breached the levels of 6440 twice or thrice during the day. Eventually, the Nifty made a low of 6433. During the last hour of trade though, there was a spike in the Nifty and the Nifty rose sharply above 6480 and made a new intraday high of 6518 before closing at 6504. We took two trades and lost a meager 5 points in those trades.

1) The Elder Ray readings : Bull Power reduces from +176 to +116 Bear Power rises from +91 to +30 indicating that the Bulls are still the flavor of season but the Bears are very near to regaining their lost grounds. For today, the Bulls need to overcome the levels of 6545 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6425 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.