Nifty - 25 Jul 2014 - Venturing into newer orbits

Nifty enters newer orbits and sustains at a new closing high. Time to remain long.

As discussed yesterday, the "Bulls kept Nifty buoyant" and conquered yet another unchartered territory, albeit after sucking in their share of profit booking. The Nifty opened flat at 7796 and them after making a quick high of 7804 pulled back to the lows of 7772 (our identified support level of 7770) and then lingered in a range of 20 points above those support levels. Then in the last hour of trade, the Nifty broke out of the range and ventured into new orbits making a high of 7836 before closing at 7831 with a gain of 35 points over its previous close. We took a trade on the long side and booked out with a profit of 45 points on that trade.

1) The Elder Ray readings : Bull Power rises from +153 to +154 Bear Power also rises from +96 to +90 indicating that Bulls are holding the control as of now. For today, the Bulls need to overcome the levels of 7860 to maintain their upwards momentum whereas the Bears need to breach the levels of 7705 to regain their lost grounds.

2) The stochastics are well and deep into the overbought zone, but have not yet triggered a Sell.

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

Nifty - 24 Jul 2014 - Bulls keep Nifty buoyant

Nifty makes a new all time high and gives a all time high close. Bulls in full control.

As discussed in our yesterday's post, "Bulls promise all time high", we got not only a new high, but a new all time highest close also. Albeit this happened after a fair amount of profit booking. The Nifty opened with a positive gap up of 27 points at 7795 and after a preliminary dip of about 20 points, crossed the opening mark and made a new all time high at 7809, within the first hour of trade. From there, the profit booking started, which took the Nifty to 7780, then to 7765 and then to 7753. Buyers came in at that point and the Nifty saw a sharp recovery in the last hour of trade to close at a all time high of 7796 with a gain of 28 points over its previous close. None of our trading plans triggered yesterday.

1) The Elder Ray readings : Bull Power rises from +141 to +153 Bear Power reduces from +72 to +96 indicating that the Bulls are in full control as of now. For today, the Bulls need to overcome the levels of 7830 to maintain their upwards momentum whereas the Bears need to breach the levels of 7675 to regain their lost grounds.

2) The stochastics are now almost in the overbought zone, but are indicating some more room on the upside.

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

Nifty - 23 Jul 2014 - Bulls promise all time high

Nifty comes within reach of all time highs. Bullish expiry on the cards as of now.

As discussed yesterday, the "Bulls held on" and with great follow through, which was lacking day before yesterday. The Nifty opened with a 24 point positive gap up at 7708 and after making a quick low of 7705, surged towards 7750 (our identified resistance zone). From there, the Nifty retreated a bit, but always held on to the lows of the day, and recovered, and crossed the resistance zone of 7750 7770, before making a high of 7774 and closing at 7768 with a gain of 84 points over its previous close. We took a trade on the short side and could book out with a profit of 30 points on that trade.

1) The Elder Ray readings : Bull Power rises from +111 to +141 Bear Power reduces from +63 to +72 indicating that the Bulls are in the drivers seat as of now. For today, the Bulls need to overcome the levels of 7800 to maintain their upwards momentum whereas the Bears need to breach the levels of 7655 to regain their lost grounds.

2) The stochastics are now approaching the overbought zone, indicating some more room for an up move.

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

Nifty - 22 Jul 2014 - Bulls hold on without followup

Bulls hold on to the gains on the Nifty, but have to follow up soon to stave the Bears.

As discussed in yesterday's post, "Bulls should hold on", the Bulls did manage to keep the Nifty trading in the green, above its previous close of 7664, throughout the trading session. However, at the top end of the trading range, the Nifty saw some profit booking. The Nifty opened with a positive gap up of 38 points at 7702, then made a high of 7722 in the first half and hour of trade, before slipping to 7681 and then later in the day to 7674, before closing at 7684 with a gain of 20 points over its previous close. There was nothing for a day trader like us in yesterday's 50 point ranged day.

1) The Elder Ray readings : Bull Power rises from +86 to +111 Bear Power reduces from -3 to +63 indicating that the Bulls have now dislodged the Bears, but need to keep them away from their safe zone. For today, the Bulls need to overcome the levels of 7735 to maintain their upwards momentum whereas the Bears need to breach the levels of 7625 to regain their lost grounds.

2) The stochastics stay in the neutral zone and keep on pointing upwards.

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

Nifty - 21 Jul 2014 - Bulls should hold on

Nifty sets up stage for a fast up move. Bulls need to hold on to gains for now.

On Friday, we had suggested that the "Bullish trend may assert" itself, and despite weak global cues, the Nifty opened with just a 10 point negative gap down at 7630 and tested supports at 7595 as expected. From there on, the Nifty regained its initial losses and in the afternoon soared to touch new intraday high of 7685 before closing at 7664 with a gain of 23 points over its previous close. We traded on the long side and could book a profit of 40 points on that trade.

1) The Elder Ray readings : Bull Power rises from +68 to +87 Bear Power also rises from +25 to -3 indicating that the Bears are still in the reckon and that the Bulls need some more work to do. For today, the Bulls need to overcome the levels of 7700 to maintain their upwards momentum whereas the Bears need to breach the levels of 7590 to maintain their downwards momentum.

2) The stochastics are right in the center of 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.