Bulls take away control of the Nifty just as Bears regain their footing. Tricky terrain.
As discussed yesterday, we saw range bound volatility on the Nifty in the first half of the trading session, with the Nifty touching the lows of around 5640 thrice before the Bulls charged back and took away the Nifty past 5700 to close at 5708 with a gain of 56 points. Our plan (b) got triggered and we could book a profit of 65 points as our targets also got achieved.
1) The Elder Ray readings : Bull Power rises from +19 to +47 Bear Power also rises from -21 to -37 indicative of the tricky terrain that the Nifty has entered in. For today, the Bulls need to overcome the levels of 5730 on the Nifty to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5670 to maintain their downwards momentum.
2) The Nifty has again 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 increased with the rise in the Nifty indicating that the up move can sustain. The MACD is still showing a downwards trend with the histogram being in the negative. The ADX is again showing some gain in momentum for the up trend. The Parabolic SAR continues with its sell signal with the SL at 5761.
5) Considering the above, our trading plan for the day is as under.
a) Around 5685 we will open fresh long positions with a SL of 5665 and a target of 5750. We will add to these long positions only above 5780.
b) Around 5765 we will open fresh short positions with a SL of 5780 and a target of 5690. We will add to these short positions only below 5665.
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 saw range bound volatility on the Nifty in the first half of the trading session, with the Nifty touching the lows of around 5640 thrice before the Bulls charged back and took away the Nifty past 5700 to close at 5708 with a gain of 56 points. Our plan (b) got triggered and we could book a profit of 65 points as our targets also got achieved.
1) The Elder Ray readings : Bull Power rises from +19 to +47 Bear Power also rises from -21 to -37 indicative of the tricky terrain that the Nifty has entered in. For today, the Bulls need to overcome the levels of 5730 on the Nifty to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5670 to maintain their downwards momentum.
2) The Nifty has again 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 increased with the rise in the Nifty indicating that the up move can sustain. The MACD is still showing a downwards trend with the histogram being in the negative. The ADX is again showing some gain in momentum for the up trend. The Parabolic SAR continues with its sell signal with the SL at 5761.
5) Considering the above, our trading plan for the day is as under.
a) Around 5685 we will open fresh long positions with a SL of 5665 and a target of 5750. We will add to these long positions only above 5780.
b) Around 5765 we will open fresh short positions with a SL of 5780 and a target of 5690. We will add to these short positions only below 5665.
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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