At the start of a fresh series, Nifty looks positively poised in the short term.
As discussed in our last post, we saw Expiry Jitters, throughout the trading session, although the Nifty closed in the positive with a gain of 41 points. The Nifty opened flat, with a very minor positive gap of 6 points, then resumed its down move, to trade below the 5600 mark making a low of 5683, before recovering, and then moving past the opening mark, the previous day's highs, making a high at 5693 before closing at 5683.
1) The Elder Ray readings : Bull Power rises from -86 to -40 Bear Power stagnates at -128, indicating that the Bulls need to do some more work whereas the Bears are waiting for the kill. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5595 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has a good support at 5627 which is its 200DMA.
3) The Stochastics are in the oversold zone and are pointing upwards indicating that a up move in the short term may be expected.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is in the negative but the histogram is seen rising, supporting the expected up move. The ADX is also suggesting a rise in the upwards momentum, but is still favoring the Bears. The Parabolic SAR continues with its sell signal with a SL at 5846.
5) Considering the above, our trading plan for the day is as under.
a) Around 5630 we will open fresh long positions with a SL of 5610 and a target of 5710. We will add to these long positions only above 5750.
b) Around 5735 we will open fresh short positions with a SL of 5750 and a target of 5660. We will add to these short positions only below 5610.
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 in our last post, we saw Expiry Jitters, throughout the trading session, although the Nifty closed in the positive with a gain of 41 points. The Nifty opened flat, with a very minor positive gap of 6 points, then resumed its down move, to trade below the 5600 mark making a low of 5683, before recovering, and then moving past the opening mark, the previous day's highs, making a high at 5693 before closing at 5683.
1) The Elder Ray readings : Bull Power rises from -86 to -40 Bear Power stagnates at -128, indicating that the Bulls need to do some more work whereas the Bears are waiting for the kill. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5595 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has a good support at 5627 which is its 200DMA.
3) The Stochastics are in the oversold zone and are pointing upwards indicating that a up move in the short term may be expected.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is in the negative but the histogram is seen rising, supporting the expected up move. The ADX is also suggesting a rise in the upwards momentum, but is still favoring the Bears. The Parabolic SAR continues with its sell signal with a SL at 5846.
5) Considering the above, our trading plan for the day is as under.
a) Around 5630 we will open fresh long positions with a SL of 5610 and a target of 5710. We will add to these long positions only above 5750.
b) Around 5735 we will open fresh short positions with a SL of 5750 and a target of 5660. We will add to these short positions only below 5610.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.