Nifty continues to trend upwards as strong bulls show their hand.
As discussed yesterday, the Nifty continues to break out and pause. Yesterday again the Nifty did the same. It opened with a positive gap of 32 points and then gyrated in a small range of 22 points for the entire trading session, making yet another new high for the year at 6006, before closing at 5993 with a gain of 42 points. This gapping up and pausing shows that the Nifty is in the hands of some strong bulls and that in such situations there is hardly any trading opportunity for intraday traders like us. None of our trading plans triggered yesterday, and we sat aside and enjoyed watching the market from the side lines.
1) The Elder Ray readings : Bull Power rises from +72 to +100 Bear Power reduces from +43 to +76 indicating the strength of the Bulls and the weakness of the Bears at this stage. For today, the Bulls need to overcome the levels of 6020 to retain their upwards momentum whereas the Bears need to breach the levels of 5905 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 stochastics are knocking on the doors of the overbought zone.
4) In the above chart, the volumes have risen with the rise in the Nifty indicating that the up move may sustain for now. The MACD is showing positive recovery with the Histogram just turning positive. The ADX is confirming the rise in the 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 5970 we will open fresh long positions with a SL of 5950 and a target of 6020. We will add to these long positions only above 6040.
b) Around 6025 we will open fresh short positions with a SL of 6040 and a target of 5995. We will add to these short positions only below 5950.
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, the Nifty continues to break out and pause. Yesterday again the Nifty did the same. It opened with a positive gap of 32 points and then gyrated in a small range of 22 points for the entire trading session, making yet another new high for the year at 6006, before closing at 5993 with a gain of 42 points. This gapping up and pausing shows that the Nifty is in the hands of some strong bulls and that in such situations there is hardly any trading opportunity for intraday traders like us. None of our trading plans triggered yesterday, and we sat aside and enjoyed watching the market from the side lines.
1) The Elder Ray readings : Bull Power rises from +72 to +100 Bear Power reduces from +43 to +76 indicating the strength of the Bulls and the weakness of the Bears at this stage. For today, the Bulls need to overcome the levels of 6020 to retain their upwards momentum whereas the Bears need to breach the levels of 5905 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 stochastics are knocking on the doors of the overbought zone.
4) In the above chart, the volumes have risen with the rise in the Nifty indicating that the up move may sustain for now. The MACD is showing positive recovery with the Histogram just turning positive. The ADX is confirming the rise in the 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 5970 we will open fresh long positions with a SL of 5950 and a target of 6020. We will add to these long positions only above 6040.
b) Around 6025 we will open fresh short positions with a SL of 6040 and a target of 5995. We will add to these short positions only below 5950.
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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