After a major decline, Bulls comeback strong, setting Nifty in equilibrium.
As discussed yesterday, we saw choppiness on the rise on the Nifty. The Nifty opened flat at 5989 against the previous close of 5983, made a quick low of 5976 and swiftly moved above 6000 and reached 6030, and all this in the very first hour of trade. 6030, which we had identified as a resistance level, did act as one for the next 4 hours, wherein the Nifty traded in a extremely narrow band of 20 points between 6034 and 6014. Post that, the Bulls took over and the Nifty swiftly moved past 6050, our identified break out level, and zoomed to 6100 before closing at 6083 with a whopping 100 points gain. Our trading plan(a) triggered right in the first hour, and we booked out with a 20 point profit as the Nifty did not seem to show any weakness. We could not trade the break out, as we were absent from the market during the last 2 hours of trade.
1) The Elder Ray readings : Bull Power rises from -34 to +46 Bear Power reduces from -112 to -78 indicating that both the Bulls and the Bears are in their respective safe zones and the next move will depend on who takes the initiative. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum whereas the Bears need to breach the levels of 5970 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing in opposite directions.
3) The Nifty has now closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, volumes have decreased with the rise in the Nifty indicating that the rise may get arrested. The MACD is pointing horizontal, with the histogram rising but in the negative. The ADX is now suggesting favor to the Bulls, but is indicating a fall in the overall momentum. The Parabolic SAR continues with its sell signal with the SL now at 6212.
5) Considering the above, our trading plan for the day is as under.
a) Around 6045 we will open fresh long positions with a SL of 6015 and a target of 6115. We will add to these long positions only above 6150.
b) Around 6130 we will open fresh short positions with a SL of 6150 and a target of 6060. We will add to these short positions only below 6015.
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 choppiness on the rise on the Nifty. The Nifty opened flat at 5989 against the previous close of 5983, made a quick low of 5976 and swiftly moved above 6000 and reached 6030, and all this in the very first hour of trade. 6030, which we had identified as a resistance level, did act as one for the next 4 hours, wherein the Nifty traded in a extremely narrow band of 20 points between 6034 and 6014. Post that, the Bulls took over and the Nifty swiftly moved past 6050, our identified break out level, and zoomed to 6100 before closing at 6083 with a whopping 100 points gain. Our trading plan(a) triggered right in the first hour, and we booked out with a 20 point profit as the Nifty did not seem to show any weakness. We could not trade the break out, as we were absent from the market during the last 2 hours of trade.
1) The Elder Ray readings : Bull Power rises from -34 to +46 Bear Power reduces from -112 to -78 indicating that both the Bulls and the Bears are in their respective safe zones and the next move will depend on who takes the initiative. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum whereas the Bears need to breach the levels of 5970 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing in opposite directions.
3) The Nifty has now closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, volumes have decreased with the rise in the Nifty indicating that the rise may get arrested. The MACD is pointing horizontal, with the histogram rising but in the negative. The ADX is now suggesting favor to the Bulls, but is indicating a fall in the overall momentum. The Parabolic SAR continues with its sell signal with the SL now at 6212.
5) Considering the above, our trading plan for the day is as under.
a) Around 6045 we will open fresh long positions with a SL of 6015 and a target of 6115. We will add to these long positions only above 6150.
b) Around 6130 we will open fresh short positions with a SL of 6150 and a target of 6060. We will add to these short positions only below 6015.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty gyrating merrily without triggering any of our trading plans.
ReplyDeleteWaiting on the sidelines and protecting profit gained in past few days.
Nifty missed our trading plan (b) by just a whisker of 3 points.
ReplyDeleteNo open trades as yet.