Nifty - 04 Apr 2014 - Profit booking sets in

Nifty makes a higher high but also a lower low & closes in red. Seems profit booking.

As discussed yesterday, the Bulls continued with their up move. The Nifty opened with a positive gap up of 20 points at 6772 and made a quick all time high of 6777 (just 3 points away from our identified resistance of 6780) before starting to drift downwards consistently. The Nifty kept on breaching the day's lows throughout the day, till it made a low of 6697. In the last 30 minutes of trade, the Bulls re-entered and the Nifty soared to get near to its highs. However, it managed only to close below its previous close by 16 points at 6736. We got entangled in this whipsaw and our stop losses restricted our loss to just 22 points in two trades.

1) The Elder Ray readings : Bull Power reduces from +150 to +145 Bear Power rises from +110 to +66 indicating that the Bears are gaining some grounds though the Bulls are still holding the reigns on the Nifty. For today, the Bulls need to overcome the levels of 6795 to maintain their upwards momentum whereas the Bears need to breach the levels of 6650 to regain their lost grounds.

2) The stochastics are still in the overbought zone, but are tilting downwards.

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

Nifty - 03 Apr 2014 - Bulls continue their up move

Nifty continues to make higher highs and higher lows keeping the uptrend intact.

As discussed yesterday, the upwards momentum remained strong on the Nifty, as the markets opened with a positive gap up of 37 points at 6758. The Nifty then made a quick high of 6764 and started to drift downwards slowly. The Nifty traded below the level of 6750 for most of the trading session, however, it held above 6720. The Nifty made a low of 6724 and in the final hour of trade, made a dash towards the day's high and closed at 6753 with a gain of 32 points. We took a trade on the short side and booked out with a small profit of 15 points. The Nifty has made four consecutive hanging men candles on the daily charts, but no weakness is evident as of now.

1) The Elder Ray readings : Bull Power rises from +141 to +150 Bear Power reduces from +85 to +110 indicating the strong hold of the Bulls on the Nifty as of now. For today, the Bulls need to overcome the levels of 6790 to maintain their upwards momentum whereas the Bears need to breach the levels of 6640 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 - 02 Apr 2014 - Upwards momentum stays strong

Nifty remains strong making newer highs and higher closes. Momentum with Bulls.

As discussed yesterday, the Bulls maintained their hold on the Nifty, as the markets shrugged of the announcement of the monetary policy by the RBI, which turned out to be a non-event. The Nifty opened with a positive gap up of 25 points at 6730, but could make a intraday high of only 6732. The Nifty then saw profit booking and the Nifty slid below the 6700 level to make a intraday low of 6675 (higher than the previous day's low) and then spurted back to close at 6721 with a gain of 17 points. None of our trading plans got triggered and we sat out watching the gyrations of the Nifty.

1) The Elder Ray readings : Bull Power reduces from +161 to +141 Bear Power rises from +93 to +85 indicating that the Bulls are finding it hard to keep the Nifty floating higher now. For today, the Bulls need to overcome the levels of 6755 whereas the Bears need to breach the levels of 6610 to regain their lost grounds.

2) The stochastics continue to remain in the overbought zone stubbornly.

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

Nifty - 01 Apr 2014 - Bulls maintain their hold

Nifty keeps on making higher highs and higher closes. Bullish sentiment prevails.

As discussed in our last post, the Upwards momentum continued on the Nifty, on Friday as well as on Monday. The Nifty has since then traded from 6644 to 6730 a range of 85 points and has closed above the psychological level of 6700. On Friday, we could garner a 35 points in the short trade taken. We took a trading holiday yesterday owing to Gudi Padwa. For today, all eyes will be on RBI and its monetary policy for the markets to maintain this momentum.

1) The Elder Ray readings : Bull Power rises from +156 to +161 Bear Power also rises from +97 to +93 indicative of the Bullish hold that prevails on the Nifty. For today, the Bulls need to overcome the levels of 6750 to maintain their upwards momentum whereas the Bears need to breach the levels of 6585 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.