Nifty has yet another consolidation day and maintains its Bullish stance as yet.
As discussed yesterday, the expiry week started with a Bullish stance. The Nifty opened with a negative gap down of 19 points at 6010, made a low of 6004 and swiftly moved into the green territory. It then attempted to cross the monthly high of 6067, but stalled at 6064, 3 points shy. After that, the sentiment got spoiled on announcement of quarterly results by Larsen & Toubro, and the Nifty came down into the negative zone again, but stayed above the 6020 and closed at 6032 with a meager gain of 3 points.
1) The Elder Ray readings : Bull Power reduces from +131 to +114 Bear Power rises from +84 to +55 indicating that though the Bears have gained some grounds, they are still far away from their safe zone and the Bulls are sitting pretty tight in the drivers seat as of now. 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 5965 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 above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have depleted with the stagnation in the Nifty indicating lack of participation and a wait for further direction. The MACD continues to rise with the histogram remaining in the positive. 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 moved to 5869.
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 6070. 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 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 expiry week started with a Bullish stance. The Nifty opened with a negative gap down of 19 points at 6010, made a low of 6004 and swiftly moved into the green territory. It then attempted to cross the monthly high of 6067, but stalled at 6064, 3 points shy. After that, the sentiment got spoiled on announcement of quarterly results by Larsen & Toubro, and the Nifty came down into the negative zone again, but stayed above the 6020 and closed at 6032 with a meager gain of 3 points.
1) The Elder Ray readings : Bull Power reduces from +131 to +114 Bear Power rises from +84 to +55 indicating that though the Bears have gained some grounds, they are still far away from their safe zone and the Bulls are sitting pretty tight in the drivers seat as of now. 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 5965 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 above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have depleted with the stagnation in the Nifty indicating lack of participation and a wait for further direction. The MACD continues to rise with the histogram remaining in the positive. 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 moved to 5869.
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 6070. 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 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
sir
ReplyDeletecan we create shorts here or its now a upward journey now
plz guide
Trading plan (b) has triggered. We have opened short position at 6082 with a SL of 6095
ReplyDeletesir
ReplyDeleteu have given 6025 as ideal target for short position
what would be a safe target for a small trader who doesnt want to carry the position overnight
Shivam,
ReplyDeleteIt is advisable to enter with 2 lots and part book at 20 25 points profit and trail the rest for target.
As for your question, wait for the day's low to be broken at 6060. Then book profit around 6055 6050
Booked out at 6072 with a small 10 points profit as EOD is nearing by.
ReplyDelete