With the Nifty stuck within a range, it could be a day of opportunities both ways.
Yesterday, we had suggested that the Nifty had returned back into the range, and the Nifty found support in the morning session at 5255 and then found resistance near 5280 to close a tad below 5240. Today, the Nifty is likely to be under pressure, but is also likely to find good support at levels of sub 5200.
1) The Elder Ray readings : Bull Power rises from +24 to +42 Bear Power reduces from -36 to -11, indicating that since both the Bulls and the Bears are well placed, and with the volatility likely to increase, it could turn out to be a day of trading both ways, if played carefully.
2) The Nifty is trading right between its key EMAs which are stacked inversely between 5230 and 5250. The cross over of the 100 and 200 DMAs suggests that the Bulls will come into play at around 5130, which is a strong support for the Nifty.
3) The stochastics are in the neutral zone now.
4) In the above chart, the volumes have slightly increased in yesterday's decline. The MACD is in the negative and is horizontal. The ADX also suggests congestion area for both Bulls and Bears. The Parabolic SAR continues to hold on to its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5190, we will open fresh long positions with a SL of 5165 and a target of 5255. We will add to these long positions only above 5295.
b) Below 5255, we will open fresh short positions with a SL of 5285 and a target of 5200. We will add to these short positions only below 5160.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we had suggested that the Nifty had returned back into the range, and the Nifty found support in the morning session at 5255 and then found resistance near 5280 to close a tad below 5240. Today, the Nifty is likely to be under pressure, but is also likely to find good support at levels of sub 5200.
1) The Elder Ray readings : Bull Power rises from +24 to +42 Bear Power reduces from -36 to -11, indicating that since both the Bulls and the Bears are well placed, and with the volatility likely to increase, it could turn out to be a day of trading both ways, if played carefully.
2) The Nifty is trading right between its key EMAs which are stacked inversely between 5230 and 5250. The cross over of the 100 and 200 DMAs suggests that the Bulls will come into play at around 5130, which is a strong support for the Nifty.
3) The stochastics are in the neutral zone now.
4) In the above chart, the volumes have slightly increased in yesterday's decline. The MACD is in the negative and is horizontal. The ADX also suggests congestion area for both Bulls and Bears. The Parabolic SAR continues to hold on to its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5190, we will open fresh long positions with a SL of 5165 and a target of 5255. We will add to these long positions only above 5295.
b) Below 5255, we will open fresh short positions with a SL of 5285 and a target of 5200. We will add to these short positions only below 5160.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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