Nifty undergoes consolidation as expected. Bullish stance continues as of now.
As discussed yesterday, the Nifty was approaching resistances, and traded within the previous day's range for the entire trading session. The Nifty opened with a negative gap of 13 points at 5886 and then traded in a narrow range of 47 points making a low of 5852 and a high of 5899 before closing at 5858 with a loss of 41 points by end of day. We did not trade in this narrow range as none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from +143 to +124 Bear Power also reduces from +61 to +77 indicating that the Bulls have booked profits, but the Bears are nowhere near to take advantage. For today, the Bulls need to overcome the levels of 5915 to maintain their upwards momentum whereas the Bears need to breach the levels of 5790 to regain their lost grounds.
2) The stochastics have entered the oversold zone now.
3) The Nifty continues to close above all its key EMAs and also above its 200DMA and 100DMA. However it is still below its 50DMA(5927).
4) In the above chart, the volumes have remained stagnant with the fall in the Nifty indicating a pause in the up move on the Nifty. The MACD continues to point upwards from the negative zone, the histogram continues to grow in the positive, indicating bullish undertones. The ADX is suggesting a fall in the bullish momentum, but still is favoring the Bulls. The Parabolic SAR continues with its buy signal with the SL now pegged at 5586.
5) Considering the above, our trading plan for the day is as under.
a) Around 5800 we will open fresh long positions with a SL of 5780 and a target of 5885. We will add to these long positions only above 5935.
b) Around 5915 we will open fresh short positions with a SL of 5935 and a target of 5845. We will add to these short positions only below 5780.
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 was approaching resistances, and traded within the previous day's range for the entire trading session. The Nifty opened with a negative gap of 13 points at 5886 and then traded in a narrow range of 47 points making a low of 5852 and a high of 5899 before closing at 5858 with a loss of 41 points by end of day. We did not trade in this narrow range as none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from +143 to +124 Bear Power also reduces from +61 to +77 indicating that the Bulls have booked profits, but the Bears are nowhere near to take advantage. For today, the Bulls need to overcome the levels of 5915 to maintain their upwards momentum whereas the Bears need to breach the levels of 5790 to regain their lost grounds.
2) The stochastics have entered the oversold zone now.
3) The Nifty continues to close above all its key EMAs and also above its 200DMA and 100DMA. However it is still below its 50DMA(5927).
4) In the above chart, the volumes have remained stagnant with the fall in the Nifty indicating a pause in the up move on the Nifty. The MACD continues to point upwards from the negative zone, the histogram continues to grow in the positive, indicating bullish undertones. The ADX is suggesting a fall in the bullish momentum, but still is favoring the Bulls. The Parabolic SAR continues with its buy signal with the SL now pegged at 5586.
5) Considering the above, our trading plan for the day is as under.
a) Around 5800 we will open fresh long positions with a SL of 5780 and a target of 5885. We will add to these long positions only above 5935.
b) Around 5915 we will open fresh short positions with a SL of 5935 and a target of 5845. We will add to these short positions only below 5780.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) has triggered and have opened fresh intraday long position at 5795 with a SL of 5775
ReplyDeleteSL Hit at 5775 booked loss of 20 points
ReplyDelete