Bulls take the Nifty past 5340 and assert their authority. Bears left gaping with awe.
On 6th Sept 2012, we suggested that the Nifty was trading near a cluster of crucial supports and that a bounce back from those levels could not have been ruled out. Also on 7th Sept 2012, we suggested that the Bulls have the advantage. As expected, we saw the Nifty open with a huge positive gap of 70 points and then keep on building on that momentum. We immediately opened fresh long positions, and could book a profit of 35 points.
1) The Elder Ray readings : During the past two trading sessions, (Including the special session on Saturday), the Bull Power increased from -29 to +60, the Bear Power decreased from -72 to +38, indicating that the Bulls have managed to surprise the Bears. For today, the Bulls need to take the Nifty past 5375 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5305 to regain their lost grounds.\
2) The Nifty is trading again above all its key EMAs and also above all its key DMAs. The fact that the Nifty has regained its upwards momentum so quickly, makes us think that a fresh Bull run is about to start, if not already started.
3) The stochastics are in the neutral zone and are pointing upwards, indicating some more room for an up move from current levels.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating that this up-move may be sustainable. The MACD is indicating a positive inclination with the histogram also inching upwards. The ADX is favoring the Bulls, however is suggesting a fall in the momentum. The Parabolic SAR is now signalling a Buy with the SL pegged at 5219.
5) Considering the above, our trading plan for the day is as under.
a) Around 5330, we will open fresh long positions with a SL of 5310 and a target of 5385. We will add to these long positions only above 5405.
b) Around 5395, we will open fresh short positions with a SL of 5405 and a target of 5355. We will add to these short positions only below 5310.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
On 6th Sept 2012, we suggested that the Nifty was trading near a cluster of crucial supports and that a bounce back from those levels could not have been ruled out. Also on 7th Sept 2012, we suggested that the Bulls have the advantage. As expected, we saw the Nifty open with a huge positive gap of 70 points and then keep on building on that momentum. We immediately opened fresh long positions, and could book a profit of 35 points.
1) The Elder Ray readings : During the past two trading sessions, (Including the special session on Saturday), the Bull Power increased from -29 to +60, the Bear Power decreased from -72 to +38, indicating that the Bulls have managed to surprise the Bears. For today, the Bulls need to take the Nifty past 5375 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5305 to regain their lost grounds.\
2) The Nifty is trading again above all its key EMAs and also above all its key DMAs. The fact that the Nifty has regained its upwards momentum so quickly, makes us think that a fresh Bull run is about to start, if not already started.
3) The stochastics are in the neutral zone and are pointing upwards, indicating some more room for an up move from current levels.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating that this up-move may be sustainable. The MACD is indicating a positive inclination with the histogram also inching upwards. The ADX is favoring the Bulls, however is suggesting a fall in the momentum. The Parabolic SAR is now signalling a Buy with the SL pegged at 5219.
5) Considering the above, our trading plan for the day is as under.
a) Around 5330, we will open fresh long positions with a SL of 5310 and a target of 5385. We will add to these long positions only above 5405.
b) Around 5395, we will open fresh short positions with a SL of 5405 and a target of 5355. We will add to these short positions only below 5310.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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