Nifty hits roadblocks and retreats. Bulls still holding the sway. Buy on dips.
As discussed yesterday, the Nifty stayed Bullish in the morning session. The Nifty opened with a positive gap of 12 points, then effortlessly crossed the psychological level of 6200, before hitting the roadblock at 5230, our identified level of resistance. From there, the Nifty saw profit booking and retreated to the levels of 6146 before closing at 6157, again our identified level of support. Our trading plan (b) got triggered and hit its target, and we could book a handsome profit of 60 points in that trade.
1) The Elder Ray readings : Bull Power rises from +150 to +164 Bear Power also rises from +96 to +81 indicating that despite yesterday's fall in the Nifty, the Bulls still remain strong and the Bears remain out of their safe zone. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 6075 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone, but are now pointing downwards.
3) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the fall may get arrested soon. The MACD continues to move up in the positive terrain, with the Histogram also remaining positive. The ADX is still favoring the Bulls and the Parabolic SAR continues with its Buy signal with a SL of 5998.
5) Considering the above, our trading plan for the day is as under.
a) Around 6125, we will open fresh long positions with a SL of 6095 and a target of 6200. We will add to these long positions only above 6225.
b) Around 6210, we will open fresh short positions with a SL of 6225 and a target of 6155. We will add to these short positions only below 6095.
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 stayed Bullish in the morning session. The Nifty opened with a positive gap of 12 points, then effortlessly crossed the psychological level of 6200, before hitting the roadblock at 5230, our identified level of resistance. From there, the Nifty saw profit booking and retreated to the levels of 6146 before closing at 6157, again our identified level of support. Our trading plan (b) got triggered and hit its target, and we could book a handsome profit of 60 points in that trade.
1) The Elder Ray readings : Bull Power rises from +150 to +164 Bear Power also rises from +96 to +81 indicating that despite yesterday's fall in the Nifty, the Bulls still remain strong and the Bears remain out of their safe zone. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 6075 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone, but are now pointing downwards.
3) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the fall may get arrested soon. The MACD continues to move up in the positive terrain, with the Histogram also remaining positive. The ADX is still favoring the Bulls and the Parabolic SAR continues with its Buy signal with a SL of 5998.
5) Considering the above, our trading plan for the day is as under.
a) Around 6125, we will open fresh long positions with a SL of 6095 and a target of 6200. We will add to these long positions only above 6225.
b) Around 6210, we will open fresh short positions with a SL of 6225 and a target of 6155. We will add to these short positions only below 6095.
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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