In a choppy market, the Nifty is trading at the top end of its short term range.
Yesterday, we had said, "The bias is still downward", however, after "the retest of recent lows" two days ago, the Bears seemed to get exhausted, and were not able to breach the previous days low. As per our rules of "identifying market trends", the bears needed to breach lows in order to keep the down trend intact. Their failure to do so, led the bulls to takeover the Nifty, and they staged a smart comeback. However, the Bulls have stopped just short of their recent highs near 4955, which could act as a resistance point for today. A failure by both the Bulls and the Bears would lead to an increase in choppiness on the Nifty.
1) The Elder Ray readings : Bull Power rises from -85 to -4 Bear Power reduces from -135 to -106, indicating that even after the smart pullback by the Bulls, the Bears are still in the drivers seat, albeit a lot weakened. For today, the Bulls need to overcome 4940, whereas the Bears need to breach 4830 to maintain their current momentum.
2) The Nifty is now trading below its key DMAs and its 13 and 21 EMAs, however, it is above its 8 EMA which is at 4900, which could be a key pivot point for the Nifty now.
3) The Stochastics are just out of the oversold zone, and are pointing upwards now.
4) In the above chart, the volumes have increased with yesterday's rise in the Nifty, indicating sustainability to the up move. The MACD is in the negative, but is showing some strengthening now, indicative of an up move. The ADX is still in the favor of the bears, but is signalling a weakening of the down trend. The Parabolic SAR enters the 3rd day of is buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 4895, we will open fresh long positions with a SL of 4865 and a target of 4980. We will add to these long positions only above 4995.
b) Around 4985, we will open fresh short positions with a SL of 4995 and a target of 4900. We will add to these short positions only below 4850.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we had said, "The bias is still downward", however, after "the retest of recent lows" two days ago, the Bears seemed to get exhausted, and were not able to breach the previous days low. As per our rules of "identifying market trends", the bears needed to breach lows in order to keep the down trend intact. Their failure to do so, led the bulls to takeover the Nifty, and they staged a smart comeback. However, the Bulls have stopped just short of their recent highs near 4955, which could act as a resistance point for today. A failure by both the Bulls and the Bears would lead to an increase in choppiness on the Nifty.
1) The Elder Ray readings : Bull Power rises from -85 to -4 Bear Power reduces from -135 to -106, indicating that even after the smart pullback by the Bulls, the Bears are still in the drivers seat, albeit a lot weakened. For today, the Bulls need to overcome 4940, whereas the Bears need to breach 4830 to maintain their current momentum.
2) The Nifty is now trading below its key DMAs and its 13 and 21 EMAs, however, it is above its 8 EMA which is at 4900, which could be a key pivot point for the Nifty now.
3) The Stochastics are just out of the oversold zone, and are pointing upwards now.
4) In the above chart, the volumes have increased with yesterday's rise in the Nifty, indicating sustainability to the up move. The MACD is in the negative, but is showing some strengthening now, indicative of an up move. The ADX is still in the favor of the bears, but is signalling a weakening of the down trend. The Parabolic SAR enters the 3rd day of is buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 4895, we will open fresh long positions with a SL of 4865 and a target of 4980. We will add to these long positions only above 4995.
b) Around 4985, we will open fresh short positions with a SL of 4995 and a target of 4900. We will add to these short positions only below 4850.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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