With no follow up action on part of both the bulls and the bears, Nifty stays ranged.
As discussed yesterday, the roadblocks ahead, made the Nifty to stumble and retreat. Pegging upon global cues and bolstered by the RBI action, the Nifty opened with a nice gap up of 30 points, and then stumbled at around 5340 as suggested by us, and retreated back to 5300. Today, the global cues are not so encouraging and we may see a flattish opening.
1) The Elder Ray readings : Bull Power rises from +36 to +75 Bear Power reduces from -54 to +26 indicating that now the Bears need to come into action as they have lost valuable grounds. The Bulls seem to have carried out the tough task as of now. For today, the Bulls need to overcome 5350 to maintain their momentum, whereas the Bears need to breach 5270 to regain their lost grounds.
2) The Nifty is trading above its key EMAs which are pointing upwards, but are stacked inversely.
3) The stochastics are still in the neutral region and are pointing upwards.
4) In the above chart, the volumes have depleted in yesterday's rise on the Nifty indicating lack of followup action on part of the bulls. The MACD is still in the negative and is horizontal, however the MACD histogram has turned minor positive. The ADX is suggesting a trend less market with a bias towards the up move. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5315, we will open fresh short positions with a SL of 5345 and a target of 5270. We will add to these short positions only below 5240.
b) Around 5275, we will open fresh long positions with a SL of 5250 and a target of 5315. We will add to these long positions only above 5350.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the roadblocks ahead, made the Nifty to stumble and retreat. Pegging upon global cues and bolstered by the RBI action, the Nifty opened with a nice gap up of 30 points, and then stumbled at around 5340 as suggested by us, and retreated back to 5300. Today, the global cues are not so encouraging and we may see a flattish opening.
1) The Elder Ray readings : Bull Power rises from +36 to +75 Bear Power reduces from -54 to +26 indicating that now the Bears need to come into action as they have lost valuable grounds. The Bulls seem to have carried out the tough task as of now. For today, the Bulls need to overcome 5350 to maintain their momentum, whereas the Bears need to breach 5270 to regain their lost grounds.
2) The Nifty is trading above its key EMAs which are pointing upwards, but are stacked inversely.
3) The stochastics are still in the neutral region and are pointing upwards.
4) In the above chart, the volumes have depleted in yesterday's rise on the Nifty indicating lack of followup action on part of the bulls. The MACD is still in the negative and is horizontal, however the MACD histogram has turned minor positive. The ADX is suggesting a trend less market with a bias towards the up move. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5315, we will open fresh short positions with a SL of 5345 and a target of 5270. We will add to these short positions only below 5240.
b) Around 5275, we will open fresh long positions with a SL of 5250 and a target of 5315. We will add to these long positions only above 5350.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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