Nifty may continue its bullish march if 5350 holds. Short covering expected.
As discussed in our last post, the Nifty approached the top end of its trading channel with the Bulls taking charge, and now seems to be ready to cross higher peaks. Our trading plan (a) got triggered during the last trading session and also met its target. Also our trading plan (b) got triggered later and yielded a minor profit.
1) The Elder Ray readings : Bull Power rises from +78 to +97 Bear Power reduces from +35 to +39, indicating the strong grip of the Bulls over the Nifty. For today, the Bulls need to overcome the levels of 5405 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5300 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs, indicating the strength of this up move.
3) The stochastics are well and deeply into the overbought zone, and some profit booking at higher levels should be expected now.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating sustainability of this up move. The MACD continues to rise, and so does the ADX. The Parabolic SAR continues with its buy signal with a SL now pegged at 5231.
5) Considering the above, our trading plan for the day is as under.
a) Around 5350, we will open fresh long positions with a SL of 5325 and a target of 5415. We will add to these long positions only above 5435.
b) Around 5420, we will open fresh short positions with a SL of 5435 and a target of 5365. We will add to these short positions only below 5325.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, the Nifty approached the top end of its trading channel with the Bulls taking charge, and now seems to be ready to cross higher peaks. Our trading plan (a) got triggered during the last trading session and also met its target. Also our trading plan (b) got triggered later and yielded a minor profit.
1) The Elder Ray readings : Bull Power rises from +78 to +97 Bear Power reduces from +35 to +39, indicating the strong grip of the Bulls over the Nifty. For today, the Bulls need to overcome the levels of 5405 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5300 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and all its key DMAs, indicating the strength of this up move.
3) The stochastics are well and deeply into the overbought zone, and some profit booking at higher levels should be expected now.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating sustainability of this up move. The MACD continues to rise, and so does the ADX. The Parabolic SAR continues with its buy signal with a SL now pegged at 5231.
5) Considering the above, our trading plan for the day is as under.
a) Around 5350, we will open fresh long positions with a SL of 5325 and a target of 5415. We will add to these long positions only above 5435.
b) Around 5420, we will open fresh short positions with a SL of 5435 and a target of 5365. We will add to these short positions only below 5325.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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