Nifty set to open with a positive gap and hit road blocks ahead.
As discussed yesterday, the Nifty was mostly range bound, barring the spike of the gap up and the first minute trade. After that the Nifty traded for the entire day in a range of 25 to 30 points. The Bulls had the full control of the session, and any attempts to sell were bought off swiftly. Today, given the global cues, the Nifty is likely to gap up, but then some profit booking can emerge.
1) The Elder Ray readings : Bull Power rises from +86 to +89 Bear Power reduces from -9 to +41, indicating that the Bears are now in the opponents territory, and may attempt a comeback.
2) The key EMAs on the Nifty are now pointing up and are supportive of a bull run. The 200DMA continues to fall a bit even now.
3) The Stochastics are fast approaching the overbought zone. This indicates that there is still some more room for a up move.
4) In the above chart, the volumes have decreased in yesterday's trade, indicating lack of participation. The MACD is still falling. The ADX is indicating weakening of the up-move and also is suggesting range bound trading on the Nifty. The Parabolic SAR maintains its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5510, we will open fresh shorts with a SL of 5525 and a target of 5435. We will add to these short positions only below 5405.
b) Around 5440, we will open fresh long positions with a SL of 5415 and a target of 5500. We will add to these long positions only above 5530.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty was mostly range bound, barring the spike of the gap up and the first minute trade. After that the Nifty traded for the entire day in a range of 25 to 30 points. The Bulls had the full control of the session, and any attempts to sell were bought off swiftly. Today, given the global cues, the Nifty is likely to gap up, but then some profit booking can emerge.
1) The Elder Ray readings : Bull Power rises from +86 to +89 Bear Power reduces from -9 to +41, indicating that the Bears are now in the opponents territory, and may attempt a comeback.
2) The key EMAs on the Nifty are now pointing up and are supportive of a bull run. The 200DMA continues to fall a bit even now.
3) The Stochastics are fast approaching the overbought zone. This indicates that there is still some more room for a up move.
4) In the above chart, the volumes have decreased in yesterday's trade, indicating lack of participation. The MACD is still falling. The ADX is indicating weakening of the up-move and also is suggesting range bound trading on the Nifty. The Parabolic SAR maintains its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5510, we will open fresh shorts with a SL of 5525 and a target of 5435. We will add to these short positions only below 5405.
b) Around 5440, we will open fresh long positions with a SL of 5415 and a target of 5500. We will add to these long positions only above 5530.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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