Nifty maintains its Bullish stance in spite of a fall due to profit booking yesterday.
In our yesterday's post, we had expected the uptrend to continue. However, the markets chose otherwise. The Nifty opened with a minor down gap of 8 points then climbed to make the day's high just below the previous day's close, then traded in a tight range for the entire day, before making a low below the previous day's low at 5992 and then closed at 6002, thus maintaining its mildly bullish traits. Our trading plan (a) got triggered and hit its stop loss, thus making us lose 20 points in that trade.
1) The Elder Ray readings : Bull Power reduces from +90 to +74 Bear Power rises from +40 to +11, indicating that though the Bulls have just paused, the Bears could not take the full advantage of that and could not recover fully. For today, the Bulls need to overcome the levels of 6060 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5980 to regain their lost grounds.
2) Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are giving mixed signals, with the fast ones pointing down and the slow ones pointing upwards.
4) In the above chart the volumes have remained lower with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to point horizontal. The ADX is suggesting a loss of momentum for the up move, but is still favoring the Bulls. The Parabolic SAR continues with its Buy call with the SL now pegged at 5963.
5) Considering the above, our trading plan for the day is as under.
a) Around 5980 we will open fresh long positions with a SL of 5960 and a target of 6025. We will add to these long positions only above 6045.
b) Around 6030 we will open fresh short positions with a SL of 6045 and a target of 5995. We will add to these short positions only below 5960.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post, we had expected the uptrend to continue. However, the markets chose otherwise. The Nifty opened with a minor down gap of 8 points then climbed to make the day's high just below the previous day's close, then traded in a tight range for the entire day, before making a low below the previous day's low at 5992 and then closed at 6002, thus maintaining its mildly bullish traits. Our trading plan (a) got triggered and hit its stop loss, thus making us lose 20 points in that trade.
1) The Elder Ray readings : Bull Power reduces from +90 to +74 Bear Power rises from +40 to +11, indicating that though the Bulls have just paused, the Bears could not take the full advantage of that and could not recover fully. For today, the Bulls need to overcome the levels of 6060 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5980 to regain their lost grounds.
2) Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are giving mixed signals, with the fast ones pointing down and the slow ones pointing upwards.
4) In the above chart the volumes have remained lower with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to point horizontal. The ADX is suggesting a loss of momentum for the up move, but is still favoring the Bulls. The Parabolic SAR continues with its Buy call with the SL now pegged at 5963.
5) Considering the above, our trading plan for the day is as under.
a) Around 5980 we will open fresh long positions with a SL of 5960 and a target of 6025. We will add to these long positions only above 6045.
b) Around 6030 we will open fresh short positions with a SL of 6045 and a target of 5995. We will add to these short positions only below 5960.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Plan(b) has got triggered now.
ReplyDeleteOpened fresh intraday shorts @6030 with SL of 6045 and a target of 5995.
Let's see how things develop from hereon.
SL Hit in plan(b) and part (b) of plan (a) triggered.
ReplyDeleteReversed positions now with a SL of 6025.
Booked out with at cost.
ReplyDeleteTotal for the day -15 points.