Bulls gathering momentum, but still have more to do. Nifty in equilibrium as yet.
As discussed yesterday, we saw expiry jitters on the Nifty on the last day of expiry. The Nifty opened with a bullish stance having a huge positive gap up opening of 60 points at 5648. From thereon it never looked back and traded positively above intraday averages to make a high of 5699 before closing at 5682, with a gain of 94 points. We took a small position and had to book a loss of 40 points on that trade.
1) The Elder Ray readings : Bull Power rises from -92 to -22 Bear Power reduces from -148 to -90 indicating that the Bulls are now withing striking distance of their safe zone. However, they will have a major task in defending that once achieved. For today, the Bulls need to overcome the levels of 5715 to regain their lost grounds whereas the Bears need to breach the Nifty below 5625 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and are pointing upwards now.
3) The Nifty has closed above its 8EMA but has closed below its 13EMA and 21EMA and also below all its key DMAs.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue as of now. The MACD is in the negative but is giving initial sign of a reversal, although not triggered yet. The histogram is in the negative and reducing, indicating a start of a up move. The ADX is also suggesting a rise in the Bullish momentum and a fall in the Bearish momentum. The Parabolic SAR continues with its sell signal with a SL of 5799.
5) Considering the above, our trading plan for the day is as under.
a) Around 5735 we will open fresh short positions with a SL of 5755 and a target of 5655. We will add to these short positions only below 5610.
b) Around 5640 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 5755.
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 expiry jitters on the Nifty on the last day of expiry. The Nifty opened with a bullish stance having a huge positive gap up opening of 60 points at 5648. From thereon it never looked back and traded positively above intraday averages to make a high of 5699 before closing at 5682, with a gain of 94 points. We took a small position and had to book a loss of 40 points on that trade.
1) The Elder Ray readings : Bull Power rises from -92 to -22 Bear Power reduces from -148 to -90 indicating that the Bulls are now withing striking distance of their safe zone. However, they will have a major task in defending that once achieved. For today, the Bulls need to overcome the levels of 5715 to regain their lost grounds whereas the Bears need to breach the Nifty below 5625 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and are pointing upwards now.
3) The Nifty has closed above its 8EMA but has closed below its 13EMA and 21EMA and also below all its key DMAs.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move may continue as of now. The MACD is in the negative but is giving initial sign of a reversal, although not triggered yet. The histogram is in the negative and reducing, indicating a start of a up move. The ADX is also suggesting a rise in the Bullish momentum and a fall in the Bearish momentum. The Parabolic SAR continues with its sell signal with a SL of 5799.
5) Considering the above, our trading plan for the day is as under.
a) Around 5735 we will open fresh short positions with a SL of 5755 and a target of 5655. We will add to these short positions only below 5610.
b) Around 5640 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 5755.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh intraday long position at 5775 with a SL of 5745 as part b of trading plan(b) has now triggered.
ReplyDeleteSquared off intraday long position at 5810 booking a profit of 35 points.
ReplyDelete