Nifty consolidates after a huge up move & stays bullish but cautious at higher levels.
In our yesterday's post "Poised for a breakout", we had mentioned that the Bulls need to do more to keep the Bears at bay. The Bulls did a smart job by maintaining the Nifty well above the support zone around 6280 for the entire trading session. The Nifty opened with a 20 point positive gap up at 6341 and made a quick high of 6347 and then consolidated for the entire trading session, making a low of 6300 before closing at 6319 with a nett loss of just 1 point. None of our trading plans got triggered and we took to the sidelines for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +99 Bear Power reduces from +29 to +52 indicating that the Bulls are gaining power whereas the Bears are slipping gradually. For today, the Bulls need to surpass the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 in order to regain their lost grounds.
2) The stochastics are almost touching the overbought zone.
3) The Nifty continues to close above all its key EMAs as well as above all its key DMAs.
Bulls take the Nifty past resistances, but need to do more to keep the Bears at Bay.
After a two day off for kite flying, we are back. The Nifty, with a widening trading range, is now poised for a break out yet again. This is the fourth attempt since Nov 2013, for the Nifty to break out. The trend has not yet fully resolved, with the EMAs still in a tight range of just 12 points. If the Bears do not come in within the next couple of days, this EMA squeeze will get resolved on the up side and the Bull trend might get confirmed.
1) The Elder Ray readings : Bull Power rises from +58 to +89 Bear Power reduces from +12 to +29 indicating that the Bulls have taken the charge, but the Bears are not far off as yet. For today the Bulls need to overcome the levels of 6340 to maintain their upwards momentum whereas the Bears need to breach the levels of 6235 to regain their lost grounds.
2) The fast stochastics are already in the overbought zone, with the slow stochastics following a little below the overbought zone.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
Nifty stays put while the trading range widens. Bearishness stays technically.
As discussed on Friday, the Bearish Laziness continued on the Nifty. The Nifty opened with a positive gap of 11 points at 6179 and then traded bearishly in the first hour of trade hitting a low of 6140 (exactly at our identified point of support) and then soared to to establish newer intraday highs for the next 4 hours of trade. However, after reaching a high of 6239, the Nifty got sold off in the last couple of hours of trade and closed with a gain of just 3 points at 6171. We took 4 trades and could book a nett profit of 89 points in those. One of the trades hit its SL.
1) The Elder Ray readings : Bull Power rises from -28 to +30 Bear Power also rises from -68 to -70 indicating that the Nifty has now reached a equilibrium stage. For today, the Bulls need to overcome the levels of 6235 to maintain their upwards momentum whereas the Bears need to breach the levels of 6135 to maintain their downwards momentum.
2) The stochastics are now well and deep into the oversold zone.
3) The Nifty continues to close below all its key EMAs and its 50DMA, but above its 100DMA and 200DMA.
Nifty continues to trade in a confined range with bearishness growing gradually.
As discussed yesterday, the Nifty continued its "Tentative moves of consolidation" for yet another day. The Nifty opened with a positive gap up of 7 points at 6182 and then traded between 6188 and 6148 for the entire trading session before closing at 6168, right in the middle of the trading range. None of our trading plans triggered, and we were happy watching the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power rises from -32 to -28 Bear Power also rises from -63 to -68 indicating that both the parties have tried to make their mild efforts yesterday. For today, the Bulls need to overcome the levels of 6210 to regain their lost grounds whereas the Bears need to breach the levels of 6140 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 and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
Nifty has an inside day as it consolidates in a confined range, groping for direction.
As discussed yesterday, it was Bearishness after consolidation on the Nifty. The Nifty opened with a positive gap up of 16 points at 6178 and then traded in the green, albeit not very bullishly. The Nifty made a high of 6192 and a low of 6160 before closing at 6175 with a nett gain of 12 points over the previous close. We sat on the fence and did not venture into this lackluster trading session.
1) The Elder Ray readings : Bull Power reduces from -10 to -32 Bear Power also reduces from -87 to -63 indicative of the lack of conviction on both the sides. For today, the Bulls need to overcome the levels of 6220 to regain their lost grounds whereas the Bears need to breach the levels of 6150 to maintain their downwards momentum.
2) The stochastics are pointing downwards and are almost touching the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA. However it has closed above its 100DMA and 200DMA.
After consolidating for 2 days, Nifty broke down critical supports & turns Bearish.
As discussed yesterday, Nifty's Range bound consolidation continued till late afternoon yesterday. The Nifty opened with a positive gap up of 12 points at 6204 and made a quick high of 6222 in the first hour of trade itself. This high coincided with our identified resistance zone between 6220 and 6250 in our yesterday's post. The Nifty then traded bearishly in the red for almost the entire trading session, making a intraday low of 6145. However, it did not breach our identified support zone of 6155 to 6135 and in the last hour of trade attempted a bounce which fizzled off at 6194 and the Nifty closed at 6162. We took a trade on the long side as per our trading plan and could book a profit of 64 points on two lots traded.
1) The Elder Ray readings : Bull Power rises from -19 to -10 Bear Power also rises from -73 to -87 indicating that the Bears are having advantage, however the Bulls are not far away from safety as yet. For today, the Bulls need to overcome the levels of 6225 to regain their lost grounds whereas the Bears need to breach the levels of 6130 to maintain their downwards momentum.
2) The stochastics are pointing downwards and are approaching the oversold zone, but not there quite yet.
3) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
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