Nifty - 04 Jul 2014 - Bullish end of week

Nifty remains afloat over 7700, trading at the top end of the range. Buy the dips.

As discussed yesterday, the "Momentum remained with the Bulls", despite a small bout of profit booking at the higher levels. The Nifty opened with a positive gap of 9 points at 7734 and moved higher but was not able to cross 7755 and that became a high for the day. The Nifty saw a bout of profit booking and came down to 7710 (our identified support zone) within the next 20 minutes or so. From there, it went up to 7740 where it found profit taking again. The Nifty once again dipped to 7707 before closing at 7715 with a loss of 10 points against its previous close. We took a trade on the long side and could book a profit of 25 points on that trade.

1) The Elder Ray readings : Bull Power rises from +156 to +158 Bear Power reduces from +101 to +111 indicating that the Bulls are still in the driver's seat. For today, the Bulls need to overcome the levels of 7775 to maintain their upwards momentum whereas the Bears need to breach the levels of 7615 to regain their lost grounds.

2) The stochastics are now well into the overbought zone.

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

Nifty - 03 Jul 2014 - Momentum with the Bulls

Nifty enters and may sustain in unchartered zone, as Bulls pick up the momentum.

As discussed yesterday, Nifty was "Ready for newer skies" and it did not only enter newer skies but also sustained throughout the trading session, as the Bulls kept up the buying pressure. The Nifty opened with a positive gap up of 48 points at 7683 (above our identified breakout level of 7650), made a quick low of 7677 and then immediately soared above the 7700 mark. The Nifty kept on trading above this level with a couple of minor dips which got quickly bought into. The Nifty made a high of 7732 (again our identified target of the breakout) before closing at 7725 with a gain of 90 points over its previous close. We took a trade on the long side and booked out with a 50 points gain as our targets were achieved.

1) The Elder Ray readings : Bull Power rises from +98 to +156 Bear Power reduces from +67 to +101 indicating that the Bulls have not only gained strength by now, but they have also dragged the Bears away from their safe zone. For today, the Bulls need to overcome the levels of 7755 to maintain their upwards momentum whereas the Bears need to breach the levels of 7600 to regain their lost grounds.

2) The fast stochastics are already in the overbought zone but the slow stochastics are just below the overbought zone.

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

Nifty - 02 Jul 2014 - Ready for newer skies

Bulls seem to have prepared their launchpad to move the Nifty to unchartered zones.

As discussed yesterday, the "Bulls promised upward thrust" on the Nifty as they managed to thwart any Bearish attempts and kept the Nifty afloat throughout the trading session. The Nifty opened with a positive gap up of 18 points at 7629, made low of 7618, a high of 7649 before closing at 7635 with a gain of 23 points over its previous close. We did not take any trade on this narrow ranged day, when none of our trading plans triggered.

1) The Elder Ray readings : Bull Power rises from +86 to +98 Bear Power reduces from -6 to +67 indicating that on this consolidating day, the Bulls have now dislodged the Bears. For today, the Bulls need to overcome the levels of 7665 to maintain their upwards momentum whereas the Bears need to breach the levels of 7565 to regain their lost grounds.

2) The stochastics have now turned upwards with a huge space for an up move.

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

Nifty - 01 Jul 2014 - Bulls promise upward thrust

Nifty positioned well to capture all time highs yet again. Bulls need a final thrust.

As discussed yesterday, the Nifty which was languishing in a Neutral mode, got tilted towards the Bulls right from the opening mark. The Nifty opened with a positive gap up of 25 points at 7534, made a quick low of 7532 and breached in a one swift move our identified resistance zone of 7560 7580. All of that in just the first 20 minutes of trade. The Nifty then continued to rise consistently throughout the day, with a minor hiccup around 7605, which failed to breach 7580 again, and then the Nifty made a high of 7624 before closing at 7611, a gain of 103 points over its previous close. We took a trade on the long side on breach of the resistance zone and could book a profit of 35 points on that trade.

1) The Elder Ray readings : Bull Power rises from +13 to +86 Bear Power reduces from -43 to -6 indicating that the Bulls have gained in strength but are still to dislodge the Bears. For today, the Bulls need to overcome the levels of 7640 to maintain their upwards momentum whereas the Bears need to breach the levels of 7530 to maintain their downwards momentum.

2) The stochastics are showing a reversal after just touching the oversold zone top.

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

Nifty - 30 Jun 2014 - Neutral mode continues

At end of month, Nifty continues to consolidate after a huge rally from 7240 to 7700.  

As discussed on Friday, the Nifty remained "Neutral at the start of the series" throughout the trading session. The Nifty opened with a positive gap up of 21 points at 7514 and made a high of 7539 within the first half an hour of trade only to consolidate and languish within a narrow band of trade for the next couple of hours. The Nifty did dip to 7482 briefly but recovered from there to close at 7509, which was below the opening mark but above the previous close. We did not participate on this range bound dull day of trade.

1) The Elder Ray readings : Bull Power reduces from +42 to +13 Bear Power rises from -43 to -47 indicating that the Bears are a bit stronger, but have to dislodge the Bulls as yet. For today, the Bulls need to overcome the levels of 7540 to maintain their upwards momentum whereas the Bears need to breach the levels of 7480 to maintain their downwards momentum.

2) The stochastics are now approaching the oversold zone, but are not there quite yet.

3) The Nifty has closed below its 8EMA and 13EMA but has closed above its 21EMA(7481) and also above all its key DMAs.