Nifty breaks out making yet another 24 month highest close. Bulls are back.
On Friday, we had expected the trend to get clear, however, the Nifty chose to stay in its trading range on that day. The Nifty finally broke out yesterday, making the short term bullish trend much clearer now. Maybe we were a day earlier in sensing a major move. The Nifty opened yesterday with a positive gap of 16 points (just a few points below our sell level) then made a low of 5962, before breaking out to cross 5995 in a one swift move and making a new high of 6037 before closing at 6024 with a hefty gain of 72 points. Part(b) of our trading plan(a) got triggered and we could book a profit of 30 points by the end of day.
1) The Elder Ray readings : Bull Power rises from +64 to +72 Bear Power reduces from -15 to -3 indicating that the Bears cannot be counted out as yet and that the Bulls need to do some follow up buying for now. For today, the Bulls need to overcome the levels of 6050 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5970 to maintain their downwards momentum.
2) The Nifty has now closed well above all its key EMAs and also above all its key DMAs.
3) The fast stochastics are already in the overbought zone, but the slow stochastics are still in the neutral zone and pointing upwards, indicating that some more upside still remains to be conquered by the Bulls.
4) In the above chart, the volumes have not increased with the rise in the Nifty, indicating that the rise may be susceptible. The MACD has now extremely flattened out indicating some sideways movement. The ADX still prefers the up move with a stable momentum. The Parabolic SAR continues with its buy call on a SL of 5935.
5) Considering the above, our trading plan for the day is as under.
a) Around 5995 we will open fresh long positions with a SL of 5980 and a target of 6045. We will add to these long positions only above 6070.
b) Around 6055 we will open fresh short positions with a SL of 6070 and a target of 6005. We will add to these short positions only below 5980.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, we had expected the trend to get clear, however, the Nifty chose to stay in its trading range on that day. The Nifty finally broke out yesterday, making the short term bullish trend much clearer now. Maybe we were a day earlier in sensing a major move. The Nifty opened yesterday with a positive gap of 16 points (just a few points below our sell level) then made a low of 5962, before breaking out to cross 5995 in a one swift move and making a new high of 6037 before closing at 6024 with a hefty gain of 72 points. Part(b) of our trading plan(a) got triggered and we could book a profit of 30 points by the end of day.
1) The Elder Ray readings : Bull Power rises from +64 to +72 Bear Power reduces from -15 to -3 indicating that the Bears cannot be counted out as yet and that the Bulls need to do some follow up buying for now. For today, the Bulls need to overcome the levels of 6050 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5970 to maintain their downwards momentum.
2) The Nifty has now closed well above all its key EMAs and also above all its key DMAs.
3) The fast stochastics are already in the overbought zone, but the slow stochastics are still in the neutral zone and pointing upwards, indicating that some more upside still remains to be conquered by the Bulls.
4) In the above chart, the volumes have not increased with the rise in the Nifty, indicating that the rise may be susceptible. The MACD has now extremely flattened out indicating some sideways movement. The ADX still prefers the up move with a stable momentum. The Parabolic SAR continues with its buy call on a SL of 5935.
5) Considering the above, our trading plan for the day is as under.
a) Around 5995 we will open fresh long positions with a SL of 5980 and a target of 6045. We will add to these long positions only above 6070.
b) Around 6055 we will open fresh short positions with a SL of 6070 and a target of 6005. We will add to these short positions only below 5980.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty is grinding in a narrow range maintaining the upwards bias. This way, it allows the averages to catch up with the prices before the next move unfolds.
ReplyDeleteAlthough these are mouthwatering levels for a long entry, we need to be disciplined not to venture if our levels are not reached.
Finally, after a long wait, trading plan(b) has triggered.
ReplyDeleteOpened short positions at 6055 with a SL of 6070.
Hi,
ReplyDeleteWould this be a Positional trade or an Intra one?
Thanks!
Stockathon,
DeletePurely and strictly intraday positions only.
We never carry forward positions.
Thanks will take care of same.
ReplyDeleteBooked out at 6058 with a minor loss of 3 points.
ReplyDelete