Nifty continues making higher highs and higher lows, slowly but steadily.
As discussed yesterday, we saw that the Bulls were still strong enough to keep the Nifty afloat, on a day when the Nifty traded in a narrow range but with a unmistakeable upward bias. The Nifty opened with a positive gap of 20 points, closed the gap during the day, made a high of 6094 and closed at 6082 with a gain of 18 points. None of our trading plans got triggered and we were happy to sit on the sidelines on this NR7 day.
1) The Elder Ray readings : Bull Power reduces from +83 to +82 Bear Power also reduces from +48 to +53 indicating that the Bulls have taken a moment to regroup while the Bears have lost further strength. For today, the Bulls need to overcome the levels of 6120 to maintain their upwards momentum whereas the Bears need to breach the levels of 6020 to regain their lost grounds.
2) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
3) The stochastics are now in the overbought zone but are still pointing upwards.
4) In the above chart, the volumes have decreased with the stagnation in the Nifty indicating lack of participation. The MACD is showing a small positive divergence, although with a horizontal trajectory. The ADX is suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its buy signal with a SL now pegged at 6003.
5) Considering the above, our trading plan for the day is as under.
a) Around 6060 we will open fresh long positions with a SL of 6035 and a target of 6110. We will add to these long positions only above 6130.
b) Around 6120 we will open fresh short positions with a SL of 6130 and a target of 6080. We will add to these short positions only below 6035.
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, we saw that the Bulls were still strong enough to keep the Nifty afloat, on a day when the Nifty traded in a narrow range but with a unmistakeable upward bias. The Nifty opened with a positive gap of 20 points, closed the gap during the day, made a high of 6094 and closed at 6082 with a gain of 18 points. None of our trading plans got triggered and we were happy to sit on the sidelines on this NR7 day.
1) The Elder Ray readings : Bull Power reduces from +83 to +82 Bear Power also reduces from +48 to +53 indicating that the Bulls have taken a moment to regroup while the Bears have lost further strength. For today, the Bulls need to overcome the levels of 6120 to maintain their upwards momentum whereas the Bears need to breach the levels of 6020 to regain their lost grounds.
2) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
3) The stochastics are now in the overbought zone but are still pointing upwards.
4) In the above chart, the volumes have decreased with the stagnation in the Nifty indicating lack of participation. The MACD is showing a small positive divergence, although with a horizontal trajectory. The ADX is suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its buy signal with a SL now pegged at 6003.
5) Considering the above, our trading plan for the day is as under.
a) Around 6060 we will open fresh long positions with a SL of 6035 and a target of 6110. We will add to these long positions only above 6130.
b) Around 6120 we will open fresh short positions with a SL of 6130 and a target of 6080. We will add to these short positions only below 6035.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Waiting for trading plan (a) to trigger @ 6060.
ReplyDeleteOpened long positions for intraday @ 6060 with a SL of 6035 now.
ReplyDeleteBooked out at 6048 with a small loss of 12 points.
ReplyDelete