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Tuesday 11 September 2012

Nifty - 11 Sep 2012 - Nifty takes a bullish pause

Trading in a narrow range, Bulls take a pause while retaining their grip.

As discussed yesterday, Bulls asserted their mark during trading yesterday, not letting the Nifty slip below previous day's lows and also breaching the previous day's high and in doing so, they retained their bullish grip on the Nifty, albeit with some loss of momentum. 

1) The Elder Ray readings : Bull Power rises from +60 to +61 Bear Power also rises from +38 to +35, indicating that the Bulls have still held the Bears out of their safe zone. For today, the Bulls need to overcome the levels of 5390 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5320 to regain their lost grounds.

2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.

3) The stochastics are right in the middle of the neutral zone and are pointing upwards.

 


4) In the above chart, the volumes have depleted in the narrow trading range of the Nifty yesterday, indicating lack of participation. The MACD continues to rise from the lows, indicating a bullish trend on the Nifty. The ADX is also favouring the Bulls as of now. The Parabolic SAR continues with its buy signal with the SL being moved to 5225 now.

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 5315 and a target of 5385. We will add to these long positions only above 5410.

b) Around 5395, we will open fresh short positions with a SL of 5410 and a target of 5355. We will add to these short positions only below 5315.

Happy Trading !!! 

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