Nifty - 06 Jun 2014 - EOW may be Bullish

Bulls show the way forward, need a close today above 6505, better still above 6565.

As discussed yesterday, the Nifty which was "Waiting for direction", mimicked a false signal of going down in the opening trades, but found support at the 8EMA and bounced back to give a all time high close. The Nifty opened with a mild negative gap down of 3 points at 7400 and traded bearishly in the first 45 minutes of trade, making a low of 7361, where it found support and bounced back furiously, with two minor draw-downs, to make a high of 7485 before closing at 7474 with a gain of 72 points over its previous close. Now, today being a EOW session, the Bulls need to close the Nifty in the positive to negate the Bearish Engulf formed last week on the weekly charts. We need to watch out for that.

1) The Elder Ray readings : Bull Power rises from +153 to +176 Bear Power also rises from +111 to +52 indicating that the Bulls are strong as of now. For today, the Bulls need to overcome the levels of 7515 to maintain their upwards momentum whereas the Bears need to breach the levels of 7340 to regain their lost grounds.

2) The stochastics are approaching the overbought zone but are not quite there yet.

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

Nifty - 05 Jun 2014 - Waiting for direction

NR7 day formed on the Nifty, as markets consolidate and wait for further direction.

As discussed yesterday, it was a "Test of resistances" day on the Nifty. The Nifty which opened flat at 7418, traded for the entire session within a range of 42 points with a high of 7433 and a low of 7391, before closing at 7402 with a loss of 14 points against its previous close. A breakout from this squeezed range would provide further momentum to the Nifty. We did not trade in this narrow ranged trading session.

1) The Elder Ray readings : Bull Power reduces from +164 to +153 Bear Power also reduces from +82 to +111 indicating that the bias as of now is towards the Bulls. For today, the Bulls need to overcome the levels of 7455 to maintain their upwards momentum whereas the Bears need to breach the levels of 7300 to regain their lost grounds.

2) The stochastics continue to remain in the neutral zone and point horizontal.

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

Nifty - 04 Jun 2014 - Test of resistances

Nifty stays Bullish despite presence of resistances ahead. Buy on dips mode persists.

As discussed yesterday, we say "Bulls were back" in business as the RBI event turned into a non event actually and could not stir the sentiment apart from the usual event day volatility. The Nifty opened with a positive gap up of 13 points at 7375 and maintained its poise before the event. The volatility induced by the RBI announcement could stir the Nifty in a range of about 50 points as the Nifty dipped from 7380 to 7342 and recovered from there to make a new intraday high of 7425 before closing at 7416 with a gain of 53 points over the previous close. None of our trading plans triggered and we did not participate in the volatile trade.

1) The Elder Ray readings : Bull Power rises from +134 to +164 Bear Power reduces from +5 to +82 indicating that the Bulls are gaining in strength as of now. For today, the Bulls need to overcome the levels of 7455 to maintain their upwards momentum whereas the Bears need to breach the levels of 7285 to regain their lost grounds.

2) The stochastics are in the neutral zone and are pointing upwards.

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

Nifty - 03 Jun 2014 - Bulls are back

On the eve of RBI monetary policy, Bulls regain their advantage. Volatility may rise.

On 30th May, we had suggested that the Nifty was "Sniffing downwards", and the Nifty which opened with a 20 point positive gap up at 7255 went down in a freak trade at 7118 and recovered from there to close at 7230 with a loss of 6 points. After five consecutive sessions of losses, we were expecting some green yesterday, and the Bulls obliged. The Nifty opened with a positive gap of 34 points, filled the gap in the first 15 minutes of trade and then kept on rising for the entire trading session closing near the highs of the day. We could not update our views on this blog as we were traveling, neither did we trade.

1) The Elder Ray readings : Bull Power rises from +59 to +134 Bear Power reduces from -95 to +5 indicating that the Bears have not been able to sustain in their safe zone even for a day. For today, the Bulls need to overcome the levels of 7390 to maintain their upwards momentum whereas the Bears need to breach the levels of 7255 to regain their lost grounds.

2) The stochastics are in the neutral zone and are pointing upwards.

3) The Nifty has closed now above all its key EMAs and also above all its key DMAs.