As the Nifty stands at the cross roads, the short term trend may get set today.
As discussed yesterday, Nifty got back into its trading zone, with the Nifty opening with a positive gap of 28 points, and then rising to 6005 (which was our suggested level of resistance), before getting down to 5947 (just below our suggested level of support) and closing at 5969 with a loss of 2 points. Our trading plan(b) got triggered in the morning session, hit its target. Then our trading plan(b) got triggered and on the whole we booked a profit of 55 points.
1) The Elder Ray readings : Bull Power reduces from +66 to +49 Bear Power rises from +5 to -9 indicating that now the Bears have regained their safe zone and we could have a new short term down trend. For today, the Bulls need to overcome the levels of 6010 to maintain their upwards momentum whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA (5972) but above its other key EMAs and also above all its key DMAs.
3) The stochastics are in the neutral zone and are pointing horizontal.
4) In the above chart, the volumes have slightly reduced with the small fall in the Nifty indicating that the up move may not have come to an end yet. The MACD is showing a small negative divergence, which could get clarified by the day's end today. The ADX is showing a favor to the up move as yet. The Parabolic SAR continues with its buy call with the SL now at 5910.
5) Considering the above, our trading plan is as under.
a) Around 5935 we will open fresh long positions with a SL of 5925 and a target of 5975. We will add to these long positions only above 6010.
b) Around 6000 we will open fresh short positions with a SL of 6010 and a target of 5965. We will add to these short positions only below 5925.
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 got back into its trading zone, with the Nifty opening with a positive gap of 28 points, and then rising to 6005 (which was our suggested level of resistance), before getting down to 5947 (just below our suggested level of support) and closing at 5969 with a loss of 2 points. Our trading plan(b) got triggered in the morning session, hit its target. Then our trading plan(b) got triggered and on the whole we booked a profit of 55 points.
1) The Elder Ray readings : Bull Power reduces from +66 to +49 Bear Power rises from +5 to -9 indicating that now the Bears have regained their safe zone and we could have a new short term down trend. For today, the Bulls need to overcome the levels of 6010 to maintain their upwards momentum whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA (5972) but above its other key EMAs and also above all its key DMAs.
3) The stochastics are in the neutral zone and are pointing horizontal.
4) In the above chart, the volumes have slightly reduced with the small fall in the Nifty indicating that the up move may not have come to an end yet. The MACD is showing a small negative divergence, which could get clarified by the day's end today. The ADX is showing a favor to the up move as yet. The Parabolic SAR continues with its buy call with the SL now at 5910.
5) Considering the above, our trading plan is as under.
a) Around 5935 we will open fresh long positions with a SL of 5925 and a target of 5975. We will add to these long positions only above 6010.
b) Around 6000 we will open fresh short positions with a SL of 6010 and a target of 5965. We will add to these short positions only below 5925.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh shorts @ 5998 Nifty spot.
ReplyDeleteTrailing SL of 5988 now.
Part Booked 20 points @5978
ReplyDeleteExpect volatility at 11 am due to announcement of IIP data.
ReplyDeleteHi ITradeForProfit Daily,
ReplyDeleteNice Analysis!
Keep it up.
Thank you very much Stockathon.
DeleteTSL of 5988 not hit yet, though Nifty came dangerously close at 5987.65
ReplyDeleteBooked out completely @5978, as we feel that the Nifty has bottomed out for now.
ReplyDeleteWaiting for next signal by EOD.
Total profit booked 40 points.
No positions as of now.
Target of plan(b) which triggered in the morning is achieved by now. However, we are out of our positions.
ReplyDeleteThis has been marked as a "MISTAKE OF OVER ANALYSIS" and filed back.
Looks like our plan(a) going to be triggered.
ReplyDeleteNifty Spot at 5951 now, our buy level is 5935.