Amid weak global cues and bullish undertones, the Nifty likely to swing within a range.
As discussed yesterday, there were to be no breakouts yet. The Nifty opened with a up gap of 21 points and closed with a meager gain of 10 points above that. It was however not able to scale the previous day's high by any reasonable measure. However, the undertones of a bullish trend are visible, as are always when a range bound market is at the top end of its trading range. However the global cues today are bleak.
1) The Elder Ray readings : Bull Power reduces from +75 to +66 Bear Power rises from +26 to +15 indicating that although the Bulls have lost some power, the Bears are still weak and were not able to push down Nifty that 15 points to regain their lost grounds. For today, the Bulls need to scale 5360 to retain their momentum whereas the Bears need to pull down the Nifty below 5285 to return back to safety.
2) The Nifty is trading above its key EMAs but just below its 50 DMA at 5338.
3) The stochastics are just about to touch the overbought zone. In a range bound market, this is a good indicator of a top approaching.
4) In the above chart, the volumes have depleted in yesterday's rise indicating that Bulls are lack of sustainability of the rise. The MACD is now rising and is supportive of a up move. The ADX continues to tell us that the market is still trend less and that the Bulls are weakening, but the Bears are weak too. The Bollinger Band is about to expand indicating higher volatility in coming sessions.
5) Considering the above, our trading plan for the day is as under
a) Around 5340, we will open fresh short positions with a SL of 5360 and a target of 5285. We will add to these short positions only below 5270.
b) Around 5280, we will open fresh long positions with a SL of 5270 and a target of 5325. We will add to these long positions only above 5365.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, there were to be no breakouts yet. The Nifty opened with a up gap of 21 points and closed with a meager gain of 10 points above that. It was however not able to scale the previous day's high by any reasonable measure. However, the undertones of a bullish trend are visible, as are always when a range bound market is at the top end of its trading range. However the global cues today are bleak.
1) The Elder Ray readings : Bull Power reduces from +75 to +66 Bear Power rises from +26 to +15 indicating that although the Bulls have lost some power, the Bears are still weak and were not able to push down Nifty that 15 points to regain their lost grounds. For today, the Bulls need to scale 5360 to retain their momentum whereas the Bears need to pull down the Nifty below 5285 to return back to safety.
2) The Nifty is trading above its key EMAs but just below its 50 DMA at 5338.
3) The stochastics are just about to touch the overbought zone. In a range bound market, this is a good indicator of a top approaching.
4) In the above chart, the volumes have depleted in yesterday's rise indicating that Bulls are lack of sustainability of the rise. The MACD is now rising and is supportive of a up move. The ADX continues to tell us that the market is still trend less and that the Bulls are weakening, but the Bears are weak too. The Bollinger Band is about to expand indicating higher volatility in coming sessions.
5) Considering the above, our trading plan for the day is as under
a) Around 5340, we will open fresh short positions with a SL of 5360 and a target of 5285. We will add to these short positions only below 5270.
b) Around 5280, we will open fresh long positions with a SL of 5270 and a target of 5325. We will add to these long positions only above 5365.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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