Nifty -18 Jul 2014 - Bullish trend may assert

NR7 day formed with Nifty posing Bullish. Upmove to continue post testing supports.

As discussed yesterday, the Nifty stayed in "Bullish equilibrium" as the markets traded in a narrow range at the top end of the current trading range. The formation is extremely bullish and should eventually trap weak bears. The Nifty opened with a negative gap down of 12 points at 7613 and then lingered in a tight range of just 43 points, but keeping its open low same. The Nifty made a high of 7656 before closing at 7640 with a gain of 16 points over its previous close.

1) The Elder Ray readings : Bull Power rises from +61 to +88 Bear Power reduces from -46 to +25 indicating that now he Bulls have dislodged the Bears out of their safe zone. For today, the Bulls need to overcome the levels of 7665 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 7595 to regain their lost grounds.

2) The stochastics stay 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 - 17 Jul 2014 - Bullish equilibrium

Nifty rises 200 points in 2 days. Momentum with Bulls now. But resistance at 7700.

As discussed yesterday, the Bulls had promised buoyancy, and that played out during the trading session, with the Nifty remaining above its previous close for the entire session and in the last hour sky rocketing to 7640. The Nifty opened with a positive gap of 38 points at 7564 and stayed buoyant, dipping only to 7545 and then to 7532, while recovering almost immediately after the dips. In the last hour the Nifty swept past our identified resistance zone at 7590 7610 in a swift move with huge momentum to reach a high of 7640 before closing at 7624 with a huge gain of 98 points over its previous close. We took a trade on the long side and could book out with a profit of 35 points on that trade.

1) The Elder Ray readings : Bull Power rises from -36 to +61 Bear Power reduces from -112 to -46 indicating that although the momentum is with the Bulls, the Bears are still not out of the reckon. For today, the Bulls need to overcome the levels of 7650 to maintain their upwards momentum whereas the Bears need to breach the levels of 7530 to maintain their downwards momentum.

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

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

Nifty - 16 Jul 2014 - Bulls promise buoyancy

Nifty reclaims 7500 & promises buoyancy moving ahead. Yet, trading mode persists.

As discussed yesterday, in our post "Support @ 50DMA found", the Nifty remained in the positive territory for almost the entire trading session and closed well above the psychological level of 7500. The Nifty opened with a positive gap up of 37 points at 7491 and raced towards our identified resistance levels of 7515 7535 (where we opened intraday shorts). Having found resistance, the Nifty then dipped below 7500 and all the way down to 7459 where it found buying support and recovered fully to make a new intraday high at 7535 before closing at 7527 with a gain of 73 points over its previous close. We booked a profit of 40 points on the short trade taken.

1) The Elder Ray readings : Bull Power rises from -100 to -36 Bear Power reduces from -157 to -112, indicating that though the Bulls have reclaimed a lot, there is more for them to do to recover their lost territory. For today, the Bulls need to overcome the levels of 7565 to regain their lost grounds whereas the Bears need to breach the levels of 7445 to maintain their downwards momentum.

2) The stochastics are in the oversold zone and are looking to move upwards.

3) The Nifty continues to close below all its key EMAs but above all its key DMAs.

Nifty - 15 Jul 2014 - Support @ 50DMA found

Nifty tests support at 50DMA, yet remains a Sell on rise. Bulls need to come in here.

As discussed yesterday, the Nifty which was "Poised Bearishly", found support at 50DMA(7400) and closed a good 50 points above it. However, the technicals remain in favor of the Bears as yet. The Nifty opened with a positive gap up of 9 points at 7469, made a low of 7422 and then a high of 7478 before closing at 7454 with a loss of 5 points against its previous close. The further direction of the Nifty will be decided on how the Bulls are able to sustain the upcoming relief rally.

1) The Elder Ray readings : Bull Power reduces from +26 to -100 Bear Power rises from -152 to -157 indicating that the Bears are now in control of the Nifty and that they have dislodged the Bulls too. For today, the Bulls need to overcome the levels of 7560 to regain their lost grounds whereas the Bears need to breach the levels of 7400 to maintain their downwards momentum.

2) The stochastics have now reached the oversold zone.

3) The Nifty continues to close below all its key EMAs but above all its key DMAs.

Nifty - 14 Jul 2014 - Poised Bearishly

Nifty, at the start of week, is poised Bearishly, but is oversold. May see relief rally too.

As discussed on Friday, we saw a "Volatile end of week" on the bourses, with the Nifty, although after getting a positive gap up of 17 points at 7584 and having rallied till 7626 till noon, gave up all the gains and more by the closing. The Nifty made a low of 7447 before closing at 7460. There were a couple of attempts to recovery, but got deftly sold out at the nearest resistance point. We sat out of trade as decided and waited for the week to end for a clear signal.

1) The Elder Ray readings : Bull Power reduces from +109 to +27 Bear Power rises from -143 to -152 indicating that although the Bears have got a bit stronger, they are yet to dislodge the Bulls. For today, the Bulls need to overcome the levels of 7630 to maintain their upwards momentum whereas the Bears need to breach the levels of 7425 to maintain their downwards momentum.

2) The fast stochastics are well and deep into the oversold zone, with the slow stochastics lagging behind.

3) The Nifty continues to close below all its key EMAs but above all its key DMAs.