Bears gain some momentum, but Bulls remain stronger. Nifty critically poised now.
As discussed yesterday, the up move on the Nifty remained intact, with the Nifty following global cues opened with a negative gap down at 5537, but immediately was bought into and remained above that level throughout the trading session. However, it was not able to close above the previous day's close, thus giving the Bears the much needed fillip. Our trading plan (a) got triggered almost in the first few minutes of trade, and we could book a profit of 40 points during yesterday's trading session.
1) The Elder Ray readings : Bull Power reduces from +177 to +122 Bear Power rises from +143 to +75 indicating that the Bears are within striking range to their safety, however the Bulls are much stronger yet. For today, the Bulls need to overcome the levels of 5600 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5470 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs. It must be pointed out here, that all the EMAs and all the DMAs are now pointing upwards, confirming the Bullish undertone on the Nifty.
3) The stochastics are still within the overbought zone.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating the Bullish bias on the Nifty. The MACD is climbing up, without the histogram rising, indicating some indecision amongst the Bulls. The ADX is suggesting a weakening of the up move and a strengthening of the down move. However, the bias is still bullish. The Parabolic SAR continues to give out its buy call with a SL now pegged at 5444.
5) Considering the above, our trading plan for the day is as under.
a) Around 5530, we will open fresh long positions with a SL of 5505 and a target of 5580. We will add to these long positions only above 5600.
b) Around 5590, we will open fresh short positions with a SL of 5560 and a target of 5550. We will add to these short positions only below 5505.
Happy Trading !!!
Also check out Just Nifty and The Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the up move on the Nifty remained intact, with the Nifty following global cues opened with a negative gap down at 5537, but immediately was bought into and remained above that level throughout the trading session. However, it was not able to close above the previous day's close, thus giving the Bears the much needed fillip. Our trading plan (a) got triggered almost in the first few minutes of trade, and we could book a profit of 40 points during yesterday's trading session.
1) The Elder Ray readings : Bull Power reduces from +177 to +122 Bear Power rises from +143 to +75 indicating that the Bears are within striking range to their safety, however the Bulls are much stronger yet. For today, the Bulls need to overcome the levels of 5600 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below the levels of 5470 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs. It must be pointed out here, that all the EMAs and all the DMAs are now pointing upwards, confirming the Bullish undertone on the Nifty.
3) The stochastics are still within the overbought zone.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating the Bullish bias on the Nifty. The MACD is climbing up, without the histogram rising, indicating some indecision amongst the Bulls. The ADX is suggesting a weakening of the up move and a strengthening of the down move. However, the bias is still bullish. The Parabolic SAR continues to give out its buy call with a SL now pegged at 5444.
5) Considering the above, our trading plan for the day is as under.
a) Around 5530, we will open fresh long positions with a SL of 5505 and a target of 5580. We will add to these long positions only above 5600.
b) Around 5590, we will open fresh short positions with a SL of 5560 and a target of 5550. We will add to these short positions only below 5505.
Happy Trading !!!
Also check out Just Nifty and The Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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