Just after confirming a breakout, Bulls faced with acid test of weak global cues.
As discussed yesterday, a breakout was possible on the Nifty and that breakout did occur after the initial hiccups in the morning session. The Nifty opened with a 6 point gap down, but swiftly recovered all the losses and gained momentum to touch 5777 before closing at 5760 with a gain of 36 points. The Nifty confirmed a breakout with a close above the 5730 5750 resistance band. However, weak global cues are pointing towards a weak opening and Bulls have a tough task of defending yesterday's lows and must give a close above 5750 again.
1) The Elder Ray readings : Bull Power rises from +52 to +87 Bear Power reduces from +15 to +24 indicating that the Nifty is under the spell of the Bulls. For today, the Bulls need to overcome the levels of 5785 to maintain their upwards momentum whereas the Bears need to breach the levels of 5690 on the Nifty 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 continue to remain in the overbought zone.
4) In the above chart the volumes have increased with the rise in the Nifty indicating that the up move may be sustainable. The MACD has just triggered on the upside with the red line crossing the blue line on the upside. The ADX is suggesting a really strong momentum for the up move. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5720 we will open fresh long positions with a SL of 5700 and a target of 5790. We will add to these long positions only above 5805.
b) Around 5795 we will open fresh short positions with a SL of 5805 and a target of 5750. We will add to these short positions only below 5700.
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, a breakout was possible on the Nifty and that breakout did occur after the initial hiccups in the morning session. The Nifty opened with a 6 point gap down, but swiftly recovered all the losses and gained momentum to touch 5777 before closing at 5760 with a gain of 36 points. The Nifty confirmed a breakout with a close above the 5730 5750 resistance band. However, weak global cues are pointing towards a weak opening and Bulls have a tough task of defending yesterday's lows and must give a close above 5750 again.
1) The Elder Ray readings : Bull Power rises from +52 to +87 Bear Power reduces from +15 to +24 indicating that the Nifty is under the spell of the Bulls. For today, the Bulls need to overcome the levels of 5785 to maintain their upwards momentum whereas the Bears need to breach the levels of 5690 on the Nifty 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 continue to remain in the overbought zone.
4) In the above chart the volumes have increased with the rise in the Nifty indicating that the up move may be sustainable. The MACD has just triggered on the upside with the red line crossing the blue line on the upside. The ADX is suggesting a really strong momentum for the up move. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5720 we will open fresh long positions with a SL of 5700 and a target of 5790. We will add to these long positions only above 5805.
b) Around 5795 we will open fresh short positions with a SL of 5805 and a target of 5750. We will add to these short positions only below 5700.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.