Nifty - 27 May 2014 - Bullish despite turbulence

Nifty shocks after attempting new highs, shakes out weak bulls yet stays Bullish.

As discussed yesterday, the "Expiry week" started on a bullish note as the Nifty opened with a huge 62 point gap up at 7429 and traded bullish for the entire morning session. During this period, the Nifty crossed our identified resistance zone around 7470 to make a high of 7504, just 60 points short of the all time high of 7564. However, in the afternoon session, the Nifty got top heavy and a sell off saw the Nifty plunge below our identified support zone around 7310 to make a low of 7269, from where, in the last hour of trade, the Nifty regained 90 points to close at 7359 with a loss of just 8 points from its previous close. To be frank, we did not dare to take up any trade in this volatile session, where any sort of stop losses got hit before one could blink.

1) The Elder Ray readings : Bull Power rises from +250 to +340 Bear Power also rises from +163 to +105 indicating that the Bears are recouping whilst the Bulls retain control over the Nifty. 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 7195 to regain their lost grounds.

2) The stochastics continue to hover just below the overbought zone indicating room for an upwards move.

3) The Nifty keeps on closing above all its key EMAs and also above all its key DMAs.

Nifty - 26 May 2014 - Bullish expiry week ahead

At the start of expiry week, Bulls hold sway over Nifty. New highs may be attempted.

We have been "off the blog" for the last 10 days or so, due to some technical issues with our blogger account. However, we have not been out of trade and have had some really lucrative trades during this period.

As discussed earlier, "Bulls have retained advantage" since then, although there was some turbulence in between, but it was handled well by the Bulls.

1) The Elder Ray readings : Bull Power rises from +228 to +250 Bear Power also rises a bit from +166 to +163 indicating the strength of the Bullish hold on the Nifty. For today, the Bulls need to overcome the levels of 7420 to maintain their upwards momentum whereas the Bears need to breach the levels of 7165 to regain their lost grounds.

2) The stochastics are below the overbought zone and are pointing upwards.

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

Nifty - 15 May 2014 - Bulls retain advantage

Nifty makes an inside day, closing as flat as possible, keeping bulls at advantage.

As discussed yesterday, it was Advantage Bulls on the Nifty, as although the Bulls did not take out the previous day's highs, they very well defended the previous day's lows and were able to close the day flat, retaining their advantage. The Nifty opened with a mild positive gap up of 3 points at 6112 and then lingered almost aimlessly within a range of 62 points making a high of 7142 and a low of 7081 before closing the day flat at 7109. We did not trade as none of our trading plans got triggered.

1) The Elder Ray readings : Bull Power reduces from +352 to +281 Bear Power rises from +247 to +220 indicating that though the Bulls have released a bit, their foot is still firm on the accelerator. For today, the Bulls need to overcome the levels of 7185 to maintain their upwards momentum whereas the Bears need to breach the levels of 6895 to regain their lost grounds.

2) The stochastics continue to remain in the overbought zone with no sign of coming down.

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

Nifty - 14 May 2014 - It is advantage Bulls

Nifty opens gap up and retains the gap in a choppy session. Bullish volatility on.

As discussed yesterday, the Bulls followed up on their buying spree which has started since Friday. The Nifty opened with a positive gap up of a whopping 66 points at 7080 and maintained that gap throughout the trading session. The Nifty made a high of 7172 and a low of 7067 before closing at 7109 in a highly volatile session which saw a drop of more than 120 points in the Nifty at one point of time in a highly upwardly trending market. We took a trade on the long side and could book out with a profit of 80 points.

1) The Elder Ray readings : Bull Power rises from +248 to +352 Bear Power reduces from +91 to +247 indicating the strong grip of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 7220 to maintain their upwards momentum whereas the Bears need to breach the levels of 6860 to regain their lost grounds.

2) Both the stochastics have now reached the overbought zone.

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

Nifty - 13 May 2014 - Bulls follow up

Nifty becomes extremely bullish with lots of steam still left in this leg of the upmove.

As discussed yesterday, the Nifty which has been hovering around all time highs, ventured "Back into unchartered territory", as the Nifty traded in a range where it has not traded ever. The Nifty opened at 6863 with a positive gap up of 5 points and immediately gained steam and soared over 6925, our identified resistance level, and then never really looked back apart from a couple of retraces which never came below by 25 30 points. The Nifty finally closed at 7014 after making a high of 7020, a gain of a whopping 155 points. We took a trade on the long side and garnered a profit of 80 points on that trade.

1) The Elder Ray readings : Bull Power rises from +140 to +248 Bear Power reduces from -79 to +91 indicating that the Bulls have now gained full control on the Nifty with the Bears losing their safe territory. For today, the Bulls need to overcome the levels of 7060 to maintain their upwards momentum whereas the Bears need to breach the levels of 6805 to regain their lost grounds.

2) The fast stochastics are well in the overbought zone, but the slow stochastics are still below the overbought zone, indicating further room for a upside move.

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

Nifty - 12 May 2014 - Back to unchartered territory

Nifty wipes out 9 days losses in just 5 hours. Sets itself up for highest weekly gains.

As discussed on Friday, it turned out to be a crucial end of week with the Bulls taking back the control from the Bears. The Nifty opened with a negative gap down of 6 points at 6654 and remained subdued for the initial 30 minutes of trade. Around that time, the buying spree on the bourses started and the Nifty started to rise. Once the Nifty crossed 6715 (our identified resistance level) there was no looking back. In fact on the 15 minute chart, there was no red candle for the next 4 hours or so. The Nifty finally closed at 6859 after making a all time high of 6871. We took a trade on the long side at 6720 and booked out with a nice profit of 110 points on that trade.

1) The Elder Ray readings : Bull Power rises from -22 to +140 Bear Power also rises from -72 to -79 indicating that though the Bulls have the control, the Bears cannot be ruled out as yet. For today, the Bulls need to overcome the levels of 6895 to maintain their upwards momentum whereas the Bears need to breach the levels of 6655 to maintain their downwards momentum.

2) The fast stochastics have rushed towards the overbought zone with the slow stochastics just coming out of the oversold zone.

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