Bull need to close above 5920 today to negate the rounding top being formed.
As discussed yesterday, it was time for caution on the Nifty, as the Nifty moved in a very tight range of just 30 points and that too mostly against the up trend that it is in currently. During the trading session, the Bulls never even threatened to have a go at the previous day's high whereas the Bears breached the previous day's lows, even if just by a fraction of a point. To us, this is a clear indication of Bulls loosening their grip (refer our Trend Identification Rules ). What's more is the fact that the moving averages are fast catching up, leaving that much less for the Bears to do to tilt the trend in their favor. Further trend will clearly be defined by the Bulls ability to hold 5865 and give a close above 5920.
1) The Elder Ray readings : Bull Power reduces from +139 to +95 Bear Power rises from +78 to +64 indicating that the Bulls are giving up faster than the Bears can take in as yet. For today, the Bulls need to overcome the levels of 5940 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5845 to regain their lost grounds.
2) The Nifty is continuing to close well above all its key EMAs and also above all its key DMAs, indicating that the Bull run can continue.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have decreased in yesterday's tight ranged move indicating lack of participation. The MACD continues to flatten out, with the histogram falling indicating that a reversal might be round the corner. The ADX is also suggesting a fall in momentum for the Bulls, but the Bears momentum is not catching up either. The Parabolic SAR continues with its Buy signal with the SL now at 5766.
5) Considering the above, our trading plan for the day is as under.
a) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5890. We will add to these short positions only below 5860.
b) Around 5880 we will open fresh long positions with a SL of 5860 and a target of 5925. We will add to these long positions only above 5955.
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, it was time for caution on the Nifty, as the Nifty moved in a very tight range of just 30 points and that too mostly against the up trend that it is in currently. During the trading session, the Bulls never even threatened to have a go at the previous day's high whereas the Bears breached the previous day's lows, even if just by a fraction of a point. To us, this is a clear indication of Bulls loosening their grip (refer our Trend Identification Rules ). What's more is the fact that the moving averages are fast catching up, leaving that much less for the Bears to do to tilt the trend in their favor. Further trend will clearly be defined by the Bulls ability to hold 5865 and give a close above 5920.
1) The Elder Ray readings : Bull Power reduces from +139 to +95 Bear Power rises from +78 to +64 indicating that the Bulls are giving up faster than the Bears can take in as yet. For today, the Bulls need to overcome the levels of 5940 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5845 to regain their lost grounds.
2) The Nifty is continuing to close well above all its key EMAs and also above all its key DMAs, indicating that the Bull run can continue.
3) The stochastics continue to remain in the overbought zone.
4) In the above chart, the volumes have decreased in yesterday's tight ranged move indicating lack of participation. The MACD continues to flatten out, with the histogram falling indicating that a reversal might be round the corner. The ADX is also suggesting a fall in momentum for the Bulls, but the Bears momentum is not catching up either. The Parabolic SAR continues with its Buy signal with the SL now at 5766.
5) Considering the above, our trading plan for the day is as under.
a) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5890. We will add to these short positions only below 5860.
b) Around 5880 we will open fresh long positions with a SL of 5860 and a target of 5925. We will add to these long positions only above 5955.
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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