Bulls have manged to hold on to key support levels. Up move may continue now.
As discussed yesterday, Bulls appeared to be losing steam. However, in the later half of the trading session, they made up for their losses and ended the Nifty tilting in their favor. The Nifty opened at 5795 with a positive gap of 24 points, and then traded wildly within the range of 30 points, slowly expanding the range. Two successive attempts by the Bears to pull down the Nifty were thwarted and the Nifty closed at 5837 after making a high of 5848 and a low of 5786. We could take two trades against this trend and booked a profit of 60 points in those two.
1) The Elder Ray readings : Bull Power rises from +40 to +65 Bear Power reduces from -14 to +3 indicating that the Bulls have tilted the equilibrium in their favor, buy the Bears are not far away. For today, the Bulls need to overcome the levels of 5860 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5780 to regain their lost grounds.
2) The stochastics are just below the oversold zone and are pointing upwards.
3) The Nifty has closed above all its key EMAs and also above its 200DMA. However, it has closed below its 100DMA and 50DMA.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty depicting that the rise may find resistance at higher levels. The MACD continues to point upwards from the negative zone, with the histogram remaining in the positive. The ADX is suggesting equal weightage to both the Bullish and the Bearish momentum. The Parabolic SAR continues with its Buy signal with a SL at 5611.
5) Considering the above, our trading plan for the day is as under.
a) Around 5820 we will open fresh long positions with a SL of 5800 and a target of 5890. We will add to these long positions only above 5915.
b) Around 5895 we will open fresh short positions with a SL of 5915 and a target of 5830. We will add to these short positions only below 5800.
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, Bulls appeared to be losing steam. However, in the later half of the trading session, they made up for their losses and ended the Nifty tilting in their favor. The Nifty opened at 5795 with a positive gap of 24 points, and then traded wildly within the range of 30 points, slowly expanding the range. Two successive attempts by the Bears to pull down the Nifty were thwarted and the Nifty closed at 5837 after making a high of 5848 and a low of 5786. We could take two trades against this trend and booked a profit of 60 points in those two.
1) The Elder Ray readings : Bull Power rises from +40 to +65 Bear Power reduces from -14 to +3 indicating that the Bulls have tilted the equilibrium in their favor, buy the Bears are not far away. For today, the Bulls need to overcome the levels of 5860 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5780 to regain their lost grounds.
2) The stochastics are just below the oversold zone and are pointing upwards.
3) The Nifty has closed above all its key EMAs and also above its 200DMA. However, it has closed below its 100DMA and 50DMA.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty depicting that the rise may find resistance at higher levels. The MACD continues to point upwards from the negative zone, with the histogram remaining in the positive. The ADX is suggesting equal weightage to both the Bullish and the Bearish momentum. The Parabolic SAR continues with its Buy signal with a SL at 5611.
5) Considering the above, our trading plan for the day is as under.
a) Around 5820 we will open fresh long positions with a SL of 5800 and a target of 5890. We will add to these long positions only above 5915.
b) Around 5895 we will open fresh short positions with a SL of 5915 and a target of 5830. We will add to these short positions only below 5800.
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 (b) has triggered.
ReplyDeleteOpened fresh short position at 5895 with a SL of 5915
sir
ReplyDeleteshould we create shorts or wait as the market is showing strenght
Squared off intraday short position at 5880 as Nifty not performing as per expectations.
ReplyDeleteBooked profit of 15 points.