After a healthy profit booking session, Nifty seems ready to make newer highs yet.
As discussed yesterday, Bulls continued to move up the Nifty by opening the Nifty with a 26 point positive gap up. However, this was right into our suggested sell levels, and the Nifty saw profit booking emerge. The Nifty then sold off to make a low of 5977 before closing at 5988. During the trading session, both the Bulls made a new high and the Bears breached the previous day's lows, enhancing credence of both the parties. Our trading plan (b) got triggered and we could book out with a profit of 35 points as our target was met.
1) The Elder Ray readings : Bull Power rises from +86 to +100 Bear Power also rises from +47 to +35 indicating that the Bears have still some more hard work to do. For today, the Bulls need to overcome the levels of 6050 to maintain their upwards momentum whereas the Bears need to breach the levels of 5945 to regain their lost grounds.
2) The Nifty has yet again closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are still in the overbought zone and are now pointing downwards.
4) In the above chart the volumes have reduced with the fall in the Nifty indicating that this fall may get arrested soon. The MACD continues to remain positive along with the histogram too remaining above the zero line. The ADX is suggesting strengthening of the up move. The Parabolic SAR continues to give out its buy signal with a SL of 5861.
5) Considering the above, our trading plan for the day is as under.
a) Around 5955 we will open fresh long positions with a SL of 5940 and a target of 6010. We will add to these long positions only above 6030.
b) Around 6015 we will open fresh short positions with a SL of 6030 and a target of 5995. We will add to these short positions only below 5940.
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, Bulls continued to move up the Nifty by opening the Nifty with a 26 point positive gap up. However, this was right into our suggested sell levels, and the Nifty saw profit booking emerge. The Nifty then sold off to make a low of 5977 before closing at 5988. During the trading session, both the Bulls made a new high and the Bears breached the previous day's lows, enhancing credence of both the parties. Our trading plan (b) got triggered and we could book out with a profit of 35 points as our target was met.
1) The Elder Ray readings : Bull Power rises from +86 to +100 Bear Power also rises from +47 to +35 indicating that the Bears have still some more hard work to do. For today, the Bulls need to overcome the levels of 6050 to maintain their upwards momentum whereas the Bears need to breach the levels of 5945 to regain their lost grounds.
2) The Nifty has yet again closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are still in the overbought zone and are now pointing downwards.
4) In the above chart the volumes have reduced with the fall in the Nifty indicating that this fall may get arrested soon. The MACD continues to remain positive along with the histogram too remaining above the zero line. The ADX is suggesting strengthening of the up move. The Parabolic SAR continues to give out its buy signal with a SL of 5861.
5) Considering the above, our trading plan for the day is as under.
a) Around 5955 we will open fresh long positions with a SL of 5940 and a target of 6010. We will add to these long positions only above 6030.
b) Around 6015 we will open fresh short positions with a SL of 6030 and a target of 5995. We will add to these short positions only below 5940.
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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