The Bears failed. The Bulls are yet to show strength. The Nifty is still range bound.
In our last post we had suggested, "Bearish signals still persist" , however, the Bears failed to deliver on their promise, and the Nifty never even looked like breaching its open or its day average. On the other hand, the Bulls did not show any major momentum, and the Nifty gyrated within a small trading range of 30-40 points. Today, given the global cues, the bias could be on the positive side for the Nifty. However, major resistances are very near.
1) The Elder Ray readings : Bull Power increases from -13 to +24 Bear Power reduces from -82 to -36, indicating that both the Bulls and the Bears are now equidistant and safe in their own zones. This could unleash a spell of volatility. For today, the Bulls need to overcome 5265 to maintain their momentum, whereas the Bears need to breach 5200 to achieve the same.
2) The Nifty is right into the cluster of its key EMAs which are between 5230 and 5250.
3) The stochastics are just out of the overbought zone and are pointing upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty, raising doubts on its sustainability at higher levels. The MACD is very much in the negative. The ADX is suggesting a trend less market with no bias either towards the Bulls nor the Bears. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5235, we will open fresh long positions with a SL of 5215 and a target of 5280. We will add to these long positions only above 5310.
b) Around 5285, we will open fresh short positions with a SL of 5305 and a target of 5235. We will add to these short positions only below 5210.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
In our last post we had suggested, "Bearish signals still persist" , however, the Bears failed to deliver on their promise, and the Nifty never even looked like breaching its open or its day average. On the other hand, the Bulls did not show any major momentum, and the Nifty gyrated within a small trading range of 30-40 points. Today, given the global cues, the bias could be on the positive side for the Nifty. However, major resistances are very near.
1) The Elder Ray readings : Bull Power increases from -13 to +24 Bear Power reduces from -82 to -36, indicating that both the Bulls and the Bears are now equidistant and safe in their own zones. This could unleash a spell of volatility. For today, the Bulls need to overcome 5265 to maintain their momentum, whereas the Bears need to breach 5200 to achieve the same.
2) The Nifty is right into the cluster of its key EMAs which are between 5230 and 5250.
3) The stochastics are just out of the overbought zone and are pointing upwards.
4) In the above chart, the volumes have decreased with the rise in the Nifty, raising doubts on its sustainability at higher levels. The MACD is very much in the negative. The ADX is suggesting a trend less market with no bias either towards the Bulls nor the Bears. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5235, we will open fresh long positions with a SL of 5215 and a target of 5280. We will add to these long positions only above 5310.
b) Around 5285, we will open fresh short positions with a SL of 5305 and a target of 5235. We will add to these short positions only below 5210.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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