With a break out above the trading range, Nifty may eye newer highs for now.
As discussed yesterday, the Nifty remained range-bound with a Bullish bias. The Nifty opened with a small positive gap of 11 points at 5985 and then traded within a small range of 30 points between 6005 on the higher side and 5975 on the lower side. However, after 2 pm, the Bulls took over and helped the Nifty cross the threshold of 6015 and took it straight to 6051 before closing at 6038. We undertook two trades, one on the short side and another on the long side and could book a profit of 50 points in both trades put together.
1) The Elder Ray readings : Bull Power rises from +89 to +131 Bear Power reduces from +26 to +54, indicating that the Bulls are getting stronger and that the Bears are further losing their grip on the Nifty. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5940 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone and are still pointing upwards.
3) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes continue to remain high with the rise in the Nifty indicating that the up move may continue. The MACD continues to point upwards with the histogram remaining in the positive. The ADX is now indicating a strong bias towards the Bulls and is also indicating a rising overall momentum. The Parabolic SAR continues with its Buy signal with a SL on 5805.
5) Considering the above, our trading plan for the day is as under.
a) Around 6015 we will open fresh long positions with a SL of 5995 and a target of 6080. We will add to these long positions only above 6110.
b) Around 6090 we will open fresh short positions with a SL of 6110 and a target of 6025. We will add to these short positions only below 5995.
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 remained range-bound with a Bullish bias. The Nifty opened with a small positive gap of 11 points at 5985 and then traded within a small range of 30 points between 6005 on the higher side and 5975 on the lower side. However, after 2 pm, the Bulls took over and helped the Nifty cross the threshold of 6015 and took it straight to 6051 before closing at 6038. We undertook two trades, one on the short side and another on the long side and could book a profit of 50 points in both trades put together.
1) The Elder Ray readings : Bull Power rises from +89 to +131 Bear Power reduces from +26 to +54, indicating that the Bulls are getting stronger and that the Bears are further losing their grip on the Nifty. For today, the Bulls need to overcome the levels of 6070 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5940 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone and are still pointing upwards.
3) The Nifty continues to close well above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes continue to remain high with the rise in the Nifty indicating that the up move may continue. The MACD continues to point upwards with the histogram remaining in the positive. The ADX is now indicating a strong bias towards the Bulls and is also indicating a rising overall momentum. The Parabolic SAR continues with its Buy signal with a SL on 5805.
5) Considering the above, our trading plan for the day is as under.
a) Around 6015 we will open fresh long positions with a SL of 5995 and a target of 6080. We will add to these long positions only above 6110.
b) Around 6090 we will open fresh short positions with a SL of 6110 and a target of 6025. We will add to these short positions only below 5995.
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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