Post a 3 day up move, the Nifty may choose to cool down. Buy on dips suggested.
As discussed yesterday, the Bulls took charge of the Nifty right from the word go. The Nifty opened flat at 5834, and the buying started right there. The Nifty kept on making new day highs, and all dips, which were all less than 20 points, got bought into. The Nifty made a final day high of 5904 in the last hour of trade and closed at 5899 with a gain of 57 points. None of our trading plans however, got triggered, and we sat out on the fence.
1) The Elder Ray readings : Bull Power rises from +114 to +143 Bear Power reduces from+11 to + 61 indicating that the Bulls are now firmly in the drivers seat and that the Bears are way out of their safe zone. For today, the Bulls need to overcome the levels of 5925 to keep their upwards momentum going whereas the Bears need to breach the Nifty below 5780 to regain their lost grounds.
2) The stochastics are now approaching the oversold zone, but are not quite there as yet.
3) The Nifty has closed above all its key EMAs and also above its 200DMA and 100DMA. However, it has closed below its 50DMA(5926), which could be the next resistance.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may stall shortly. The MACD has now confirmed a breakout, with the histogram moving into the positive. The ADX is also showing a bias towards the Bulls. The Parabolic SAR continues with its buy signal with the SL now at 5573.
5) Considering the above, our trading plan for the day is as under.
a) Around 5840 we will open fresh long positions with a SL of 5825 and a target of 5920. We will add to these long positions only above 5945.
b) Around 5925 we will open fresh short positions with a SL of 5945 and a target of 5865. We will add to these short positions only below 5825.
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 Bulls took charge of the Nifty right from the word go. The Nifty opened flat at 5834, and the buying started right there. The Nifty kept on making new day highs, and all dips, which were all less than 20 points, got bought into. The Nifty made a final day high of 5904 in the last hour of trade and closed at 5899 with a gain of 57 points. None of our trading plans however, got triggered, and we sat out on the fence.
1) The Elder Ray readings : Bull Power rises from +114 to +143 Bear Power reduces from
2) The stochastics are now approaching the oversold zone, but are not quite there as yet.
3) The Nifty has closed above all its key EMAs and also above its 200DMA and 100DMA. However, it has closed below its 50DMA(5926), which could be the next resistance.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may stall shortly. The MACD has now confirmed a breakout, with the histogram moving into the positive. The ADX is also showing a bias towards the Bulls. The Parabolic SAR continues with its buy signal with the SL now at 5573.
5) Considering the above, our trading plan for the day is as under.
a) Around 5840 we will open fresh long positions with a SL of 5825 and a target of 5920. We will add to these long positions only above 5945.
b) Around 5925 we will open fresh short positions with a SL of 5945 and a target of 5865. We will add to these short positions only below 5825.
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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