Nifty stays in trading mode with 'Buy on dips' & 'Sell on rise' both being applicable.
As discussed yesterday, we got a volatile month end trade, with the Nifty opening almost flat and then gyrating violently within a narrow range of 35 points for almost the entire trading session, before the Bulls found some initiative in the last hour to close the Nifty near the high of the day with a gain of 22 points. Both of our plans (a) and (b) hit their targets, however, none of them started.
1) The Elder Ray readings : Bull Power reduces from +20 to -38 Bear Power remains stagnant at -80 indicating that though the Bulls have lost their grounds, the Bears have not been able to stretch their lead, which might lead to a bi-directional trade ahead. For today, the Bulls need to overcome the levels of 5660 to regain their lost grounds whereas the Bears need to breach the levels of 5560 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs which are clustered in the 5655 5665 region. The Nifty has closed above all its key DMAs which are rising, the nearest being the 50DMA at 5547.
3) The stochastics are now in the oversold zone and are pointing upwards.
4) In the above chart, the volumes have slightly reduced with the rise in the Nifty, indicating that the rise could be deceptive. The MACD continues to fall indicating that the down move may continue. The ADX continues to favor the Bears in a market where momentum is at a low. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5585 we will open fresh long positions with a SL of 5565 and a target of 5635. We will add to these long positions only above 5665.
b) Around 5640 we will open fresh short positions with a SL of 5665 and a target of 5595. We will add to these short positions only below 5565.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we got a volatile month end trade, with the Nifty opening almost flat and then gyrating violently within a narrow range of 35 points for almost the entire trading session, before the Bulls found some initiative in the last hour to close the Nifty near the high of the day with a gain of 22 points. Both of our plans (a) and (b) hit their targets, however, none of them started.
1) The Elder Ray readings : Bull Power reduces from +20 to -38 Bear Power remains stagnant at -80 indicating that though the Bulls have lost their grounds, the Bears have not been able to stretch their lead, which might lead to a bi-directional trade ahead. For today, the Bulls need to overcome the levels of 5660 to regain their lost grounds whereas the Bears need to breach the levels of 5560 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs which are clustered in the 5655 5665 region. The Nifty has closed above all its key DMAs which are rising, the nearest being the 50DMA at 5547.
3) The stochastics are now in the oversold zone and are pointing upwards.
4) In the above chart, the volumes have slightly reduced with the rise in the Nifty, indicating that the rise could be deceptive. The MACD continues to fall indicating that the down move may continue. The ADX continues to favor the Bears in a market where momentum is at a low. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5585 we will open fresh long positions with a SL of 5565 and a target of 5635. We will add to these long positions only above 5665.
b) Around 5640 we will open fresh short positions with a SL of 5665 and a target of 5595. We will add to these short positions only below 5565.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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