Nifty stages a breakout just before expiry, only to meet roadblocks ahead.
As discussed in our last post, the squeezing of the trading range that continued, resolved itself as the Nifty staged a smart break out and marched ahead smartly to overcome 5700 and straight into the resistance zone of 5730 5750. As the Nifty swept past 5680, the part b of our trading plan (a) got triggered and we could book a profit of 45 points by the end of the day.
1) The Elder Ray readings : Bull Power rises from +14 to +85 Bear Power reduces from -11 to +10, indicating that the Bulls are now in the drivers seat, however, the Bears are not far away. For today, the Bulls need to overcome the levels of 5745 to maintain their upwards momentum whereas the Bears need to breach the levels of 5655 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The fast stochastics are now almost touching the overbought zone, with the slow stochastics still in the neutral zone.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating that this up-move may sustain. The MACD is now rising and the histogram is at zero. The ADX is also suggesting a rising momentum for the Bulls. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5695 we will open fresh long positions with a SL of 5680 and a target of 5760. We will add to these long positions only above 5775.
b) Around 5765 we will open fresh short positions with a SL of 5775 and a target of 5715. We will add to these short positions only below 5680.
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 in our last post, the squeezing of the trading range that continued, resolved itself as the Nifty staged a smart break out and marched ahead smartly to overcome 5700 and straight into the resistance zone of 5730 5750. As the Nifty swept past 5680, the part b of our trading plan (a) got triggered and we could book a profit of 45 points by the end of the day.
1) The Elder Ray readings : Bull Power rises from +14 to +85 Bear Power reduces from -11 to +10, indicating that the Bulls are now in the drivers seat, however, the Bears are not far away. For today, the Bulls need to overcome the levels of 5745 to maintain their upwards momentum whereas the Bears need to breach the levels of 5655 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The fast stochastics are now almost touching the overbought zone, with the slow stochastics still in the neutral zone.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating that this up-move may sustain. The MACD is now rising and the histogram is at zero. The ADX is also suggesting a rising momentum for the Bulls. The Parabolic SAR continues with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5695 we will open fresh long positions with a SL of 5680 and a target of 5760. We will add to these long positions only above 5775.
b) Around 5765 we will open fresh short positions with a SL of 5775 and a target of 5715. We will add to these short positions only below 5680.
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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