Bouncing back from recent lows, Nifty is still in its trading range of 5120 5320.
On Friday, the Bulls made a smart rally, closing the Nifty with a gain of a whopping 116 points. We had suggested, that a big move was likely, as the day before was a NR7 day. Today also, the Nifty is likely to open positive, and if it is able to cross the hump of resistances ahead successfully, then we can see a rally unfolding. Any failure there, and Nifty could go back again to 5100 levels.
1) The Elder Ray readings :Bull Power rises from -69 to +40 Bear Power reduces from -127 to -64, indicating that though the Bulls have regained their territory, the Bears are still safe in the negative zone. For today, the Bulls need to cross 5315 whereas the Bears need to break below 5210 in order to remain in the race.
2) The Nifty is trading above its key EMAs now, but has found resistance at its 50 DMA which is currently at 5315.
3) The stochastics are just out of the oversold zone and are pointing upwards and suggesting a continuation of the upwards movement on the Nifty.
4) In the above chart, the volumes have decreased in Friday's up-move, suggesting some halt for the up-move. The MACD is in the negative, and is stopping short of a clear buy signal. The ADX is suggesting a trend-less market, but is suggesting a gain of momentum for the up-move and a loss of momentum for the downtrend. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under
a) Above 5305, we will open fresh long positions with a SL of 5285 and a target of 5355. We will add to these long positions above 5380.
b) Around 5355, we will open fresh short positions with a SL of 5380 and a target of 5290. We will add to these short positions below 5275.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, the Bulls made a smart rally, closing the Nifty with a gain of a whopping 116 points. We had suggested, that a big move was likely, as the day before was a NR7 day. Today also, the Nifty is likely to open positive, and if it is able to cross the hump of resistances ahead successfully, then we can see a rally unfolding. Any failure there, and Nifty could go back again to 5100 levels.
1) The Elder Ray readings :Bull Power rises from -69 to +40 Bear Power reduces from -127 to -64, indicating that though the Bulls have regained their territory, the Bears are still safe in the negative zone. For today, the Bulls need to cross 5315 whereas the Bears need to break below 5210 in order to remain in the race.
2) The Nifty is trading above its key EMAs now, but has found resistance at its 50 DMA which is currently at 5315.
3) The stochastics are just out of the oversold zone and are pointing upwards and suggesting a continuation of the upwards movement on the Nifty.
4) In the above chart, the volumes have decreased in Friday's up-move, suggesting some halt for the up-move. The MACD is in the negative, and is stopping short of a clear buy signal. The ADX is suggesting a trend-less market, but is suggesting a gain of momentum for the up-move and a loss of momentum for the downtrend. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under
a) Above 5305, we will open fresh long positions with a SL of 5285 and a target of 5355. We will add to these long positions above 5380.
b) Around 5355, we will open fresh short positions with a SL of 5380 and a target of 5290. We will add to these short positions below 5275.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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