Nifty gives highest close in last one year. Newer highs expected with volumes.
As discussed yesterday, Nifty was expected to break out of its trading range and move higher. As such the Nifty opened above our target (5935) with a positive gap up of 32 points and for the rest of the session traded above that point, making a intraday high of 5964 before closing at 5951 with a gain of 46 points. None of our trading plans got triggered as the Nifty traded above our expected trading range.
1) The Elder Ray readings : Bull Power rises from +37 to +72 Bear Power reduces from +15 to +43 indicating that the Bulls are now in the driving seat and the Bears are way out of their safe zone. For today, the Bulls need to overcome the levels of 5975 to maintain their upwards momentum whereas the Bears need to breach the levels of 5895 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The fast stochastics are already in the overbought zone with the slow stochastics following close by but in the neutral zone.
4) In the above chart the volumes seem to have bottomed out with the rise in the Nifty indicating bullish sentiments amongst the market participants. The MACD is showing a upward bias with the histogram rising towards the zero line. The ADX is also suggesting a rise in the bullish momentum. The Parabolic SAR is now giving out a buy signal with a SL at 5823.
5) Considering the above, our trading plan for the day is as under.
a) Around 5975 we will open fresh short positions with a SL of 5995 and a target of 5935. We will add to these short positions only below 5905.
b) Around 5925 we will open fresh long positions with a SL of 5905 and a target of 5965. We will add to these long positions only above 5995.
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, Nifty was expected to break out of its trading range and move higher. As such the Nifty opened above our target (5935) with a positive gap up of 32 points and for the rest of the session traded above that point, making a intraday high of 5964 before closing at 5951 with a gain of 46 points. None of our trading plans got triggered as the Nifty traded above our expected trading range.
1) The Elder Ray readings : Bull Power rises from +37 to +72 Bear Power reduces from +15 to +43 indicating that the Bulls are now in the driving seat and the Bears are way out of their safe zone. For today, the Bulls need to overcome the levels of 5975 to maintain their upwards momentum whereas the Bears need to breach the levels of 5895 to regain their lost grounds.
2) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
3) The fast stochastics are already in the overbought zone with the slow stochastics following close by but in the neutral zone.
4) In the above chart the volumes seem to have bottomed out with the rise in the Nifty indicating bullish sentiments amongst the market participants. The MACD is showing a upward bias with the histogram rising towards the zero line. The ADX is also suggesting a rise in the bullish momentum. The Parabolic SAR is now giving out a buy signal with a SL at 5823.
5) Considering the above, our trading plan for the day is as under.
a) Around 5975 we will open fresh short positions with a SL of 5995 and a target of 5935. We will add to these short positions only below 5905.
b) Around 5925 we will open fresh long positions with a SL of 5905 and a target of 5965. We will add to these long positions only above 5995.
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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