Nifty makes yet another 2 year high close. Bulls continue to rule the bourses.
As discussed yesterday, the Nifty staged a breakout once again in the later stages of the day. The Nifty opened with a minor 14 point gap up and then moved in a tight range between 6035 and 6018 for most of the trading session, when in the afternoon, the Nifty broke out of this small trading range again and made a high at 6068.5 before closing at 6057. Our trading plan(b) got triggered, did not meet its SL, and we had to book out of the trade at the EOD with a small loss of 3 points.
1) The Elder Ray readings : Bull Power rises from +72 to +90 Bear Power reduces from -3 to +40 indicating that the Bears have once again lost their territory amidst the overpowering Bulls. For today, the Bulls need to overcome the levels of 6080 to maintain their upwards momentum whereas the Bears need to breach the levels of 5990 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The fast stochastics are well into the overbought zone, but the slow stochastics are just below the overbought zone.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the up move has still some more room to go ahead. The MACD is pointing horizontal but positive. The ADX is signalling a rise in momentum for the up move. The Parabolic SAR continues to give out its buy signal with a SL now at 5949.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030 we will open fresh long positions with a SL of 6010 and a target of 6085. We will add to these long positions only above 6100.
b) Around 6095 we will open fresh short positions with a SL of 6100 and a target of 6045. We will add to these short positions only below 6010.
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 staged a breakout once again in the later stages of the day. The Nifty opened with a minor 14 point gap up and then moved in a tight range between 6035 and 6018 for most of the trading session, when in the afternoon, the Nifty broke out of this small trading range again and made a high at 6068.5 before closing at 6057. Our trading plan(b) got triggered, did not meet its SL, and we had to book out of the trade at the EOD with a small loss of 3 points.
1) The Elder Ray readings : Bull Power rises from +72 to +90 Bear Power reduces from -3 to +40 indicating that the Bears have once again lost their territory amidst the overpowering Bulls. For today, the Bulls need to overcome the levels of 6080 to maintain their upwards momentum whereas the Bears need to breach the levels of 5990 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The fast stochastics are well into the overbought zone, but the slow stochastics are just below the overbought zone.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the up move has still some more room to go ahead. The MACD is pointing horizontal but positive. The ADX is signalling a rise in momentum for the up move. The Parabolic SAR continues to give out its buy signal with a SL now at 5949.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030 we will open fresh long positions with a SL of 6010 and a target of 6085. We will add to these long positions only above 6100.
b) Around 6095 we will open fresh short positions with a SL of 6100 and a target of 6045. We will add to these short positions only below 6010.
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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