AD Code

Monday 3 December 2012

Nifty - 03 Dec 2012 - Bullish up move continues

As every intra-day fall gets bought into, 5950 seems to be a logical target now.

As discussed in our last post, the Bulls takeover the Nifty, we saw the Nifty open with a minor up gap of 11 points and then build up on it through out the day giving quite a few intra-day falls which got quickly bought into. At the end, the Nifty formed yet another yearly high before closing at 5880 with a gain of 55 points. Our trading plan (b) got triggered thrice during the trading session, never met the target, but got us a average profit of 25 points (a total of 50 points) and once hit the SL with a loss of 10 points.

1) The Elder Ray readings : Bull Power rises from +160 to +182 Bear Power reduces from +63 to +125 indicating the strength of the grip and the momentum with the Bulls. For today, the Bulls need to overcome the levels of 5920 to maintain their upwards momentum whereas the Bears need to breach the levels of 5720 to regain their lost grounds.

2) The Nifty has closed much above all its key EMAs and also above all its key DMAs.

3) The stochastics are in the overbought zone but are not yet showing any signs of exhaustion.






 4) In the above chart, the volumes keep on increasing with every rise in the Nifty, indicating greater sustaining power in this current up-move. The MACD is also now rising with the histogram rising into the positive range. The ADX is also suggesting a rise in 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 5845 we will open fresh long positions with a SL of 5830 and a target of 5910. We will add to these long positions only above 5935.

b) Around 5920 we will open fresh short positions with a SL of 5935 and a target of 5865. We will add to these short positions only below 5830.

Happy Trading !!! 

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