Nifty unable to sustain highs, may turn choppy during this consolidation phase.
As discussed yesterday, we saw the Nifty stay bullish despite corrections, during the trading session. The Nifty opened flat and started to rise in the first hour of trade. However, at 6562, which was the previous day's high, the attempt got thwarted and the Nifty started to come off. During the choppy session, the Nifty then kept on making lower highs and lower lows. The Nifty made a low of 6494 before closing at 6512. Our trading plan triggered a buy at 6500, however, that trigger came too late in the day for initiating any trade.
1) The Elder Ray readings : Bull Power reduces from +248 to +220 Bear Power rises from +173 to +152 indicating that the Bulls are still strong and that the Bears are trying to crawl back to safety. For today, the Bulls need to overcome the levels of 6595 to maintain their upwards momentum whereas the Bears need to breach the levels of 6370 to regain their lost grounds.
2) The stochastics are still well and deep into the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Nifty consolidates at the top end of the range. Expect to remain Bullish as yet.
As discussed yesterday, the Nifty has been venturing in unchartered territories. The Nifty having opened with a negative gap down of 35 points, dipped a bit lower right in the first few minutes of trade and made a low point of 6487. Thereafter the Nifty traded with an increased volatility in the range of 6545 and 6495 all through out the trading session. In the last hour of trade, the Nifty attempted a break out which got thwarted at 6562 and the Nifty closed at 6537 with a gain of 11 points over the previous close, but 25 points away from the high point of the day. We did not take any trade during this trading session.
1) The Elder readings : Bull Power reduces from +261 to +248 Bear Power also reduces from +136 to +173 indicating that the Bulls have taken some profits but are still holding the Bears at bay. For today, the Bulls need to overcome the levels of 6595 to maintain their upwards momentum whereas the Bears need to breach the levels of 6360 to regain their lost grounds.
2) The stochastics continue to remain well and deep into the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Nifty gives a highest close & then another. Bulls get a stranglehold but need caution.
On Thursday, we had expressed that the Nifty was nearing final roadblocks. The Nifty since then has risen 140 points and has closed at 6527 after making a high of 6538. The volumes during this rise have been exceptionally high and speaks of the stranglehold that the Bulls have on the Nifty. Having said that, the Bulls need to keep up their tempo or else there could be a Bearish backlash just around the corner. We as intraday traders, need to keep a look out for intraday opportunities.
1) The Elder Ray readings : Bull Power rises from +171 to +261 Bear Power reduces from +104 to +136 indicating that the Bears are slipping further as the Bullish stranglehold gets tighter. For today, the Bulls need to overcome the levels of 6580 to maintain their upwards momentum whereas the Bears need to breach the levels of 6300 to regain their lost grounds.
2) The stochastics continue to be well and deep into the overbought zone.
3) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
Bulls keep the Nifty defying gravity, but need to cross the hump of 6360 & sustain it.
As discussed on Tuesday, the Nifty hit resistance yesterday and after opening with a positive gap up of 31 points at 6328, the Nifty traded bearishly in a consolidation mode for most of the trading session. The Nifty breached the levels of 6300 to make lows of 6293 and then 6288. However, the selling dried up at that point and in the late afternoon session, the Nifty recovered its losses and cleared the intraday high of 6334 to make a new intraday high of 6336 before closing at 6328, thus forming a doji in a highly critical zone. We had taken a trading holiday yesterday.
1) The Elder Ray readings : Bull Power rises from +114 to +128 Bear Power reduces from +28 to +80 indicating that the Bulls continue to strengthen their grip on the Nifty. For today, the Bulls need to overcome the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6220 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
The Nifty pull back closes below previous day's low. May produce a down move.
As discussed yesterday, the Bulls maintained their stranglehold on the Nifty, but for just the morning hours of trade, as the Nifty kept upbeat but was unable to overcome the previous day's high of 6283 and the up move got thwarted at 6278 itself. From thereon, the Nifty came tumbling down to our identified support zone of 6245 6225 and found some temporary support. But once the Bears breached 6225, the Nifty went down till 6212 before closing at 6221. We lost 20 points in a long trade.
1) The Elder Ray readings : Bull Power reduces from +122 to +108 Bear Power rises from +67 to +43, indicating that the Bulls are still in the driver's seat and that the Bears have got to do much more here. For today, the Bulls need to overcome the levels of 6285 to maintain their upwards momentum whereas the Bears need to breach the levels of 6170 to regain their lost grounds.
2) The stochastics are looking to come down from the overbought zone.
3) The Nifty has still closed above all its key EMAs and also above all its key DMAs.
The Bullish up move on Nifty inches ahead supported by positive global cues.
As discussed on Friday, the Bullish up move continued, on the Nifty. The Nifty opened with a negative gap down of 10 points at 6228, and immediately started flaring up, easily crossing 6250 threshold level and running into our identified resistance zone of 6265 6285. The Nifty then traded for the rest of the session within 6245 and 6260 before rising again in the dying moments of trade. The Nifty made a high of 6283 before closing at 6277.
1) The Elder Ray readings : Bull Power rises from +105 to +122 Bear Power reduces from +61 to +67 indicating that the Bulls are strengthening their grip whereas the Bears are getting marginalized now. For today, the Bulls need to overcome the levels of 6305 to maintain their upwards momentum whereas the Bears need to breach the levels of 6180 to regain their lost grounds.
2) The stochastics are well and deep into the overbought zone now.
3) The Nifty keeps on closing above all its key EMAs and also above all its key DMAs.
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