As the Bulls and Bears grapple for control of Nifty, volatility may rise for short term.
As discussed yesterday, the Nifty came back to trading mode and as expected we saw a range bound volatile trading session. The Nifty saw a 'Inside Day', meaning that the Nifty traded within the previous day's highs and lows for the entire trading session. Our plan (a) got triggered at the start of the trading session, and we could book a profit of 35 points twice in the day.
1) The Elder Ray readings : Bull Power reduces from +87 to +58 Bear Power also reduces from +1 to +7 indicative of the inside day trades that we had yesterday. For today, the Bulls need to take the Nifty over 5735 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5675 to regain their lost grounds.
2) The Nifty has managed to close above all its key EMAs and also above all its key DMAs.
3) The stochastics are still in the overbought zone.
4) In the above chart, the volumes have decreased with the Nifty going nowhere, indicating the lack of participation and lack of direction on the Nifty. The MACD is showing weakening of the up move, which is also indicated by the ADX. The Parabolic SAR is continuing with its sell signal with the SL at 5797.
5) Considering the above, our trading plan for the day is as under.
a) Around 5675 we will open fresh long positions with a SL of 5650 and a target of 5725. We will add to these long positions only above 5755.
b) Around 5740 we will open fresh short positions with a SL of 5755 and a target of 5685. We will add to these short positions only below 5650.
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, the Nifty came back to trading mode and as expected we saw a range bound volatile trading session. The Nifty saw a 'Inside Day', meaning that the Nifty traded within the previous day's highs and lows for the entire trading session. Our plan (a) got triggered at the start of the trading session, and we could book a profit of 35 points twice in the day.
1) The Elder Ray readings : Bull Power reduces from +87 to +58 Bear Power also reduces from +1 to +7 indicative of the inside day trades that we had yesterday. For today, the Bulls need to take the Nifty over 5735 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5675 to regain their lost grounds.
2) The Nifty has managed to close above all its key EMAs and also above all its key DMAs.
3) The stochastics are still in the overbought zone.
4) In the above chart, the volumes have decreased with the Nifty going nowhere, indicating the lack of participation and lack of direction on the Nifty. The MACD is showing weakening of the up move, which is also indicated by the ADX. The Parabolic SAR is continuing with its sell signal with the SL at 5797.
5) Considering the above, our trading plan for the day is as under.
a) Around 5675 we will open fresh long positions with a SL of 5650 and a target of 5725. We will add to these long positions only above 5755.
b) Around 5740 we will open fresh short positions with a SL of 5755 and a target of 5685. We will add to these short positions only below 5650.
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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