As both the Bulls & the Bears fight it out, Nifty in neutral zone again.
As discussed on Friday, the Bears did get a look in, however they were not able to capitalize on the chance and the Bulls staged a comeback, to close the Nifty near the day highs, indicating their intentions of taking Nifty to higher levels. However, it is to be noted that the Bears were able to breach the previous day's low and the Bulls were not able to overcome the previous day's high. Our trading plan (a) got triggered and we could book a profit of 25 points before our trailing SL was hit.
1) The Elder Ray readings : Bull Power reduces from +64 to +37 Bear Power rises from -3 to -10 indicating that in spite of the mild comeback, the Bulls have not regained their entire momentum. For today, the Bulls need to overcome the levels of 5895 to retain their upwards momentum whereas the Bears need to breach the Nifty below 5840 to retain their downwards momentum.
2) The Nifty has managed to close above all its key EMAs and also above all its key DMAs, indicating a bias towards the Bulls.
3) The stochastics are just below the overbought zone and are looking to fall.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may not sustain. The MACD continues to fall but has not triggered a short yet. The MACD histogram continues to fall yet remain in the positive. The ADX is suggesting a continuous fall in the Bulls' momentum. The Parabolic SAR has now turned into a Sell call with a SL at 5965.
5) Considering the above, our trading plan for the day is as under.
a) Around 5915 we will open fresh short positions with a SL of 5930 and a target of 5855. We will add to these short positions only below 5830.
b) Around 5845 we will open fresh long positions with a SL of 5830 and a target of 5890. We will add to these long positions only above 5930.
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 on Friday, the Bears did get a look in, however they were not able to capitalize on the chance and the Bulls staged a comeback, to close the Nifty near the day highs, indicating their intentions of taking Nifty to higher levels. However, it is to be noted that the Bears were able to breach the previous day's low and the Bulls were not able to overcome the previous day's high. Our trading plan (a) got triggered and we could book a profit of 25 points before our trailing SL was hit.
1) The Elder Ray readings : Bull Power reduces from +64 to +37 Bear Power rises from -3 to -10 indicating that in spite of the mild comeback, the Bulls have not regained their entire momentum. For today, the Bulls need to overcome the levels of 5895 to retain their upwards momentum whereas the Bears need to breach the Nifty below 5840 to retain their downwards momentum.
2) The Nifty has managed to close above all its key EMAs and also above all its key DMAs, indicating a bias towards the Bulls.
3) The stochastics are just below the overbought zone and are looking to fall.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may not sustain. The MACD continues to fall but has not triggered a short yet. The MACD histogram continues to fall yet remain in the positive. The ADX is suggesting a continuous fall in the Bulls' momentum. The Parabolic SAR has now turned into a Sell call with a SL at 5965.
5) Considering the above, our trading plan for the day is as under.
a) Around 5915 we will open fresh short positions with a SL of 5930 and a target of 5855. We will add to these short positions only below 5830.
b) Around 5845 we will open fresh long positions with a SL of 5830 and a target of 5890. We will add to these long positions only above 5930.
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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