Nifty having consolidated, forms a NR7 day. Range breakout to be watched out for.
As discussed on Friday, we expected the Nifty to challenge 6100. However, the Nifty chose to consolidate in a narrow range of 6067 6020, still maintaining the Bullish stance, and it may still have a dash at 6100.
1) The Elder Ray readings : Bull Power stagnates at +131 Bear Power reduces from +54 to +84, indicating that the Bulls have had a good day of profit booking with the Bears losing further ground. For today, the Bulls need to overcome the levels of 6080 to maintain their upwards momentum whereas the Bears need to breach the levels of 5950 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes have remained stagnant with the stagnation in the Nifty indicating the healthy consolidation. The MACD continues to point upwards and now is in the positive. The Histogram is also in the positive. The ADX is suggesting a stalling of the Bullish momentum but is still favoring the up move. The Parabolic SAR continues with its Buy signal with the SL now moved to 5836.
5) Considering the above, our trading plan for the day is as under.
a) Around 5995 we will open fresh long positions with a SL of 5775 and a target of 6075. We will add to these long positions only above 6095.
b) Around 6080 we will open fresh short positions with a SL of 6095 and a target of 6020. We will add to these short positions only below 5975.
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 on Friday, we expected the Nifty to challenge 6100. However, the Nifty chose to consolidate in a narrow range of 6067 6020, still maintaining the Bullish stance, and it may still have a dash at 6100.
1) The Elder Ray readings : Bull Power stagnates at +131 Bear Power reduces from +54 to +84, indicating that the Bulls have had a good day of profit booking with the Bears losing further ground. For today, the Bulls need to overcome the levels of 6080 to maintain their upwards momentum whereas the Bears need to breach the levels of 5950 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes have remained stagnant with the stagnation in the Nifty indicating the healthy consolidation. The MACD continues to point upwards and now is in the positive. The Histogram is also in the positive. The ADX is suggesting a stalling of the Bullish momentum but is still favoring the up move. The Parabolic SAR continues with its Buy signal with the SL now moved to 5836.
5) Considering the above, our trading plan for the day is as under.
a) Around 5995 we will open fresh long positions with a SL of 5775 and a target of 6075. We will add to these long positions only above 6095.
b) Around 6080 we will open fresh short positions with a SL of 6095 and a target of 6020. We will add to these short positions only below 5975.
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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