As the Nifty tries to break out, there are resistance zones ahead. RBI action watched.
As discussed on Friday, "Critically poised Nifty" opened with a small positive gap and then never looked back. The Nifty closed above our extreme resistance level of 5130, indicating strength. In the course, it has reached within striking distance of medium term resistance zone of 5185 5205. Today, the Nifty is again likely to open with another positive gap up, and much would depend on the RBI action / inaction for the further movement on the Nifty.
1) The Elder Ray readings : Bull Power reduces minutely from +112 to +111 Bear Power also reduces minutely from +30 to +34, indicating that both the Bulls and the Bears are now tentative in their approach. For today, the Bulls need to overcome 5170 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5050 to return to their safe zone.
2) The Nifty continues to trade above all its key EMAs and above its 50 and 200 DMA. The 100 DMA at 5195 falls right into the resistance zone as detailed above.
3) The stochastics are well and deeply into the overbought zone and are still pointing upwards.
4) In the above chart, the volumes have increased along with the rise in the Nifty indicating that the upward move may sustain. The MACD has resumed its rise again. The ADX is indicating a loss of momentum for both the up move as well as the down move. The Parabolic SAR continues with its Buy signal.
5) Considering the above our trading plan for the day is as under.
a) Around 5115, we will open fresh long positions with a SL of 5095 and a target of 5185. We will add to these long positions only above 5205.
b) Around 5195, we will open fresh short positions with a SL of 5205 and a target of 5125. We will add to these short positions only below 5090.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, "Critically poised Nifty" opened with a small positive gap and then never looked back. The Nifty closed above our extreme resistance level of 5130, indicating strength. In the course, it has reached within striking distance of medium term resistance zone of 5185 5205. Today, the Nifty is again likely to open with another positive gap up, and much would depend on the RBI action / inaction for the further movement on the Nifty.
1) The Elder Ray readings : Bull Power reduces minutely from +112 to +111 Bear Power also reduces minutely from +30 to +34, indicating that both the Bulls and the Bears are now tentative in their approach. For today, the Bulls need to overcome 5170 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5050 to return to their safe zone.
2) The Nifty continues to trade above all its key EMAs and above its 50 and 200 DMA. The 100 DMA at 5195 falls right into the resistance zone as detailed above.
3) The stochastics are well and deeply into the overbought zone and are still pointing upwards.
4) In the above chart, the volumes have increased along with the rise in the Nifty indicating that the upward move may sustain. The MACD has resumed its rise again. The ADX is indicating a loss of momentum for both the up move as well as the down move. The Parabolic SAR continues with its Buy signal.
5) Considering the above our trading plan for the day is as under.
a) Around 5115, we will open fresh long positions with a SL of 5095 and a target of 5185. We will add to these long positions only above 5205.
b) Around 5195, we will open fresh short positions with a SL of 5205 and a target of 5125. We will add to these short positions only below 5090.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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