Nifty makes an inside day, closing as flat as possible, keeping bulls at advantage.
As discussed yesterday, it was Advantage Bulls on the Nifty, as although the Bulls did not take out the previous day's highs, they very well defended the previous day's lows and were able to close the day flat, retaining their advantage. The Nifty opened with a mild positive gap up of 3 points at 6112 and then lingered almost aimlessly within a range of 62 points making a high of 7142 and a low of 7081 before closing the day flat at 7109. We did not trade as none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from +352 to +281 Bear Power rises from +247 to +220 indicating that though the Bulls have released a bit, their foot is still firm on the accelerator. For today, the Bulls need to overcome the levels of 7185 to maintain their upwards momentum whereas the Bears need to breach the levels of 6895 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone with no sign of coming down.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.