Bulls close the Nifty at all time high. Should be able to sustain this momentum now.
In our Friday's post, "EOW may be bullish" we had stated our expectations from the Bulls as "need a close today above 6505, better still above 6565" and how well did they respond. The Nifty which opened with a 47 point gap up at 7522, shook off the weak bulls by a quick dip to 7593 and then consistently kept on rising for the entire trading session thereafter. The Nifty finally made a high of 7593 before closing at the all time highest close of 7583 with a gain of 109 points over the previous close. We took a trade on the long side once the Nifty crossed over the opening mark after sustaining the lows at 7525 and booked out with a profit of 50 points at 7525.
1) The Elder Ray readings : Bull Power rises from +176 to +245 Bear Power reduces from +106 to +107 indicating that the Bulls are gaining in strength as of now. For today, the Bulls need to overcome the levels of 7635 to maintain their upwards momentum whereas the Bears need to breach the levels of 7385 to regain their lost grounds.
2) The stochastics have now re-entered the overbought zone and are pointing upwards yet.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
