Taking supports and managing to close above 5800, Nifty stays range-bound.
As discussed yesterday, the Bulls managed to hold on to key support levels and also managed to close the Nifty above the psychological level of 5800. The Nifty opened with a negative gap of 35 points at 5833 and then straightaway got sold off and remained under selling pressure in the morning session. However, after making a low of 5776, some buying came in and the Nifty tried to reach the day's open and high, but failed and closed at 5812 with a loss of 56 points. Our trading plan (a) got triggered and hit the SL, and we booked out with a small loss of 15 points.
1) The Elder Ray readings : Bull Power reduces from +105 to +36 Bear Power rises from +63 to -22 indicating that the Bears have now regained their safe zone, but the Bulls are also in their safe zone and a tug of war might unfold now. For today, the Bulls need to overcome the levels of 5840 to maintain their upwards momentum whereas the Bears need to breach the levels of 5770 to maintain their downwards momentum.
2) The stochastics continue to hover around the oversold zone.
3) The Nifty has closed above all its key EMAs but has closed below all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point upwards, the histogram continues to remain in the positive. The ADX is suggesting equilibrium amongst the bulls and the bears, with a falling overall momentum. The Parabolic SAR continues with its buy signal with a SL of 5634.
5) Considering the above, our trading plan for the day is as under.
a) Around 5795 we will open fresh long positions with a SL of 5775 and a target of 5865. We will add to these long positions only above 5885.
b) Around 5870 we will open fresh short positions with a SL of 5885 and a target of 5800. We will add to these short positions only below 5775.
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 managed to hold on to key support levels and also managed to close the Nifty above the psychological level of 5800. The Nifty opened with a negative gap of 35 points at 5833 and then straightaway got sold off and remained under selling pressure in the morning session. However, after making a low of 5776, some buying came in and the Nifty tried to reach the day's open and high, but failed and closed at 5812 with a loss of 56 points. Our trading plan (a) got triggered and hit the SL, and we booked out with a small loss of 15 points.
1) The Elder Ray readings : Bull Power reduces from +105 to +36 Bear Power rises from +63 to -22 indicating that the Bears have now regained their safe zone, but the Bulls are also in their safe zone and a tug of war might unfold now. For today, the Bulls need to overcome the levels of 5840 to maintain their upwards momentum whereas the Bears need to breach the levels of 5770 to maintain their downwards momentum.
2) The stochastics continue to hover around the oversold zone.
3) The Nifty has closed above all its key EMAs but has closed below all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point upwards, the histogram continues to remain in the positive. The ADX is suggesting equilibrium amongst the bulls and the bears, with a falling overall momentum. The Parabolic SAR continues with its buy signal with a SL of 5634.
5) Considering the above, our trading plan for the day is as under.
a) Around 5795 we will open fresh long positions with a SL of 5775 and a target of 5865. We will add to these long positions only above 5885.
b) Around 5870 we will open fresh short positions with a SL of 5885 and a target of 5800. We will add to these short positions only below 5775.
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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