Nifty - 28 Mar 2014 - Upward momentum continues

Nifty makes yet another all time high & another all time high close. Up move stays.

As discussed yesterday, it was Expiry Jitters throughout the trading session on the Nifty. The Nifty opened with a positive gap up of 12 points at 6613, made a quick low of 6600 and then bounced back to scale up to 6630 and stall. The Nifty traded within a small range for most of the day, keeping both the Bulls and the Bears on tenterhooks. During the last hour of trade, the Nifty first soared to make a new all time high of 6674 and then gave up some of its gains in the last half hour of trade to close at 6642. We took one trade on the short side and lost 20 points on that one.

1) The Elder Ray readings : Bull Power rises from +126 to +152 Bear Power also rises from +79 to +78 indicating that the Bulls are still quite strong. For today, the Bulls need to overcome the levels of 6695 to maintain their upwards momentum whereas the Bears need to breach the levels of 6545 to regain their lost grounds.

2) The stochastics remain in the overbought zone, however, they are pointing downwards.

3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

Nifty - 27 Mar 2014 - Expiry Jitters

Highly overbought Nifty at a critical juncture on Expiry day. Expect volatility to rise.

As discussed yesterday, the Bulls held on to the gains on the Nifty throughout a rangebound trading session. The Nifty after opening with a positive gap up of 26 points at 6616 went up to 6627 but got resisted just below our identified resistance zone of 6635 and then slid gradually. The Nifty made a low of 6581 before closing at 6601 with a gain of just 11 points. Thus the Nifty made a red candle on the daily chart although closing in the green above its previous close. Now today's closing needs to be watched out for. It may be forming a evening star.

1) The Elder ray readings : Bull Power rises from +111 to +126 Bear Power reduces from +60 to +79 indicating that the Bulls are still driving the Nifty. For today, the Bulls need to overcome the levels of 6645 to maintain their upwards momentum whereas the Bears need to breach the levels of 6520 to regain their lost grounds.

2) The stochastics are still languishing in the overbought zone.

3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

Nifty - 26 Mar 2014 - Bulls hold on to gains

Nifty makes yet another all time high. Bulls clutch on to their gains. More gains ahead. 

As discussed yesterday, the Bullish stranglehold continued on the Nifty. Although the Nifty opened with a negative gap down of 34 points at 6550, the opening few minutes saw the Nifty reach 6590 in no time at all. The Nifty then traded sluggishly within a zone of 15 to 20 points all through the trading session. The Nifty closed at 6590 after making a new all time high at 6596. The immediate spike in the Nifty could not trigger our intended trade on the long side, though our trading plan had triggered.

1) The Elder Ray readings : Bull Power reduces from +124 to +111 Bear Power also reduces from +43 to +60 indicating the strong hold of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 6615 to maintain their upwards momentum whereas the Bears need to breach the levels of 6505 to regain their lost grounds.

2) The stochastics continue to languish in the overbought zone.

3) The Nifty continues to close above all its key EMAs and also above all its key DMAs. 

Nifty - 25 Mar 2014 - Bullish stranglehold continues

Nifty breaks out at open, then lingers staying bullish. Patience & Caution required.

We have been on a break over this weekend. The Nifty has staged a breakout yesterday after opening at 6511 with a positive gap up of 17 points. Right at the opening within the first few minutes, the Nifty managed to cross the resistance threshold of 6545 and also its previous all time high of 6575. The Nifty traded in a confined but bullish range of 15 points over the rest of the trading session. The Nifty made a all time high of 6592 before closing at a all time high close at 6584. However, looking at the volumes and advance decline ratio, we feel that caution is required for entering fresh long positions at this juncture.

1) The Elder Ray readings : Bull Power rises from +75 to +124 Bear Power reduces from +37 to +43 indicating the strong hold of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 6610 to maintain their upwards momentum whereas the Bears need to breach the levels of 6490 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.