Nifty gets squeezed amidst supports & resistances, a big move expected soon.
As discussed yesterday, we saw the volatility increase on the Nifty with the Nifty opening with a positive gap of 15 points then falling back to 5610 regaining again and falling back then crossing the day's high before closing right below the opening mark. This volatility is likely to increase in the days to come and usually a bearish move occurs when volatility increases. Our plan (a) got triggered yesterday, and we could collect a minor profit of 20 points by end of day.
1) The Elder Ray readings : Bull Power rises from -17 to +7 Bear Power reduces from -76 to -28 indicating that now both the Bulls and the Bears are in their respective territories, and a big move may come soon to establish the dominance of either one of them. For today, the Bulls need to overcome the levels of 5645 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5605 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA (5622) but below its 13EMA and 21EMA. The Nifty has also closed below its 50DMA(5647) but above its 100DMA and 200DMA.
3) The stochastics are in the neutral zone and are pointing upwards.
4) In the above chart the volumes have decreased with the minor rise in the Nifty indicating that this rise may not sustain for long. The MACD is in the negative but has started rising gradually which is indicating of a up move. The ADX is also now suggesting a bias for a 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 5600 we will open fresh long positions with a SL of 5585 and a target of 5650. We will add to these long positions only above 5675.
b) Around 5650 we will open fresh short positions with a SL of 5675 and a target of 5615. We will add to these short positions only below 5585.
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 the volatility increase on the Nifty with the Nifty opening with a positive gap of 15 points then falling back to 5610 regaining again and falling back then crossing the day's high before closing right below the opening mark. This volatility is likely to increase in the days to come and usually a bearish move occurs when volatility increases. Our plan (a) got triggered yesterday, and we could collect a minor profit of 20 points by end of day.
1) The Elder Ray readings : Bull Power rises from -17 to +7 Bear Power reduces from -76 to -28 indicating that now both the Bulls and the Bears are in their respective territories, and a big move may come soon to establish the dominance of either one of them. For today, the Bulls need to overcome the levels of 5645 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5605 to maintain their downwards momentum.
2) The Nifty has closed above its 8EMA (5622) but below its 13EMA and 21EMA. The Nifty has also closed below its 50DMA(5647) but above its 100DMA and 200DMA.
3) The stochastics are in the neutral zone and are pointing upwards.
4) In the above chart the volumes have decreased with the minor rise in the Nifty indicating that this rise may not sustain for long. The MACD is in the negative but has started rising gradually which is indicating of a up move. The ADX is also now suggesting a bias for a 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 5600 we will open fresh long positions with a SL of 5585 and a target of 5650. We will add to these long positions only above 5675.
b) Around 5650 we will open fresh short positions with a SL of 5675 and a target of 5615. We will add to these short positions only below 5585.
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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