Nifty needs to jump over the next roadblock, else the up move may be restricted.
As discussed yesterday, the Nifty continued to hang out on the top end, even after opening with a minor gap down, but eventually making yet another higher high and higher low, thereby demonstrating the grip of the bulls on the Nifty. Having said that, we would continue to be cautious at these higher levels, until the Nifty is able to jump over the next hump, before marching onto higher peaks.
1) The Elder Ray readings : Bull Power reduces from +127 to +123 Bear Power increases from +83 to +79, indicating that the Bulls are not ready to give up their grip, even as the Bears are slowly trying to inch back into the game. For today, the Bulls need to overcome the levels of 5355 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5230 to regain their safety zone.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deep into the overbought zone.
4) In the above chart, the volumes have reduced, with the small rise in the Nifty, again indicating slight exhaustion at the top. The MACD continues to rise, indicating strength of the Bulls. The ADX is suggesting some exhaustion of the up move, however, the down move is at its ebb, now. The Parabolic SAR continues to hold out a buy signal with a turnaround point at 5240.
5) Considering the above, our trading plan for the day is as under.
a) Around 5355, we will open fresh short positions with a SL of 5375 and a target of 5290. We will add to these short positions only below 5265.
b) Around 5285, we will open fresh long positions with a SL of 5265 and a target of 5350. We will add to these long positions only above 5375.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty continued to hang out on the top end, even after opening with a minor gap down, but eventually making yet another higher high and higher low, thereby demonstrating the grip of the bulls on the Nifty. Having said that, we would continue to be cautious at these higher levels, until the Nifty is able to jump over the next hump, before marching onto higher peaks.
1) The Elder Ray readings : Bull Power reduces from +127 to +123 Bear Power increases from +83 to +79, indicating that the Bulls are not ready to give up their grip, even as the Bears are slowly trying to inch back into the game. For today, the Bulls need to overcome the levels of 5355 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5230 to regain their safety zone.
2) The Nifty continues to close above all its key EMAs and all its key DMAs.
3) The stochastics continue to remain well and deep into the overbought zone.
4) In the above chart, the volumes have reduced, with the small rise in the Nifty, again indicating slight exhaustion at the top. The MACD continues to rise, indicating strength of the Bulls. The ADX is suggesting some exhaustion of the up move, however, the down move is at its ebb, now. The Parabolic SAR continues to hold out a buy signal with a turnaround point at 5240.
5) Considering the above, our trading plan for the day is as under.
a) Around 5355, we will open fresh short positions with a SL of 5375 and a target of 5290. We will add to these short positions only below 5265.
b) Around 5285, we will open fresh long positions with a SL of 5265 and a target of 5350. We will add to these long positions only above 5375.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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