Nifty gaps up & consolidates as resistance creeps in at higher levels. Caution ahead.
As discussed yesterday, post a consolidation, the Bullish status quo was maintained. The Nifty gapped up with a 33 point positive at 6064 and then traded with a Bullish bias within a 32 point range for the entire trading session, during which it made a high of 6093 and a low of 6061 before closing at 6078. We took a trade on the short side as per our trading plan(b) and exited with a small profit of 10 points by EOD.
1) The Elder Ray readings : Bull Power rises from +114 to +125 Bear Power reduces from +55 to +93 indicating that the Bulls have gained further strength as of now and the Bulls have got themselves cornered. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum whereas the Bears need to breach the levels of 5985 to regain their lost ground.
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 risen with the rise in the Nifty indicating that the up move may continue. The MACD has almost reach the top and is still pointing upwards. The ADX is suggesting gain in the Bullish momentum. The Parabolic SAR continues with its Buy signal with a SL at 5900.
5) Considering the above, our trading plan for the day is as under.
a) Around 6035 we will open fresh long positions with a SL of 6015 and a target of 6110. We will add to these long positions only above 6140.
b) Around 6125 we will open fresh short positions with a SL of 6140 and a target of 6055. We will add to these short positions only below 6015.
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, post a consolidation, the Bullish status quo was maintained. The Nifty gapped up with a 33 point positive at 6064 and then traded with a Bullish bias within a 32 point range for the entire trading session, during which it made a high of 6093 and a low of 6061 before closing at 6078. We took a trade on the short side as per our trading plan(b) and exited with a small profit of 10 points by EOD.
1) The Elder Ray readings : Bull Power rises from +114 to +125 Bear Power reduces from +55 to +93 indicating that the Bulls have gained further strength as of now and the Bulls have got themselves cornered. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum whereas the Bears need to breach the levels of 5985 to regain their lost ground.
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 risen with the rise in the Nifty indicating that the up move may continue. The MACD has almost reach the top and is still pointing upwards. The ADX is suggesting gain in the Bullish momentum. The Parabolic SAR continues with its Buy signal with a SL at 5900.
5) Considering the above, our trading plan for the day is as under.
a) Around 6035 we will open fresh long positions with a SL of 6015 and a target of 6110. We will add to these long positions only above 6140.
b) Around 6125 we will open fresh short positions with a SL of 6140 and a target of 6055. We will add to these short positions only below 6015.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty has opened right near our trading plan(a).
ReplyDeleteWill wait for first 15 minutes and then plunge into the trade. That is the idea as of now.
Have opened fresh long position at 6040 with a SL of 6015 as per trading plan (a)
ReplyDeleteSL hit at 6015 booked out with a loss of 25 points
ReplyDelete
ReplyDeletesir
how does the fall today changes the trend
as you have written volatiity may RISE
any opportunity to go long at current levels??
Yes, there seems to be one. Buy with a strict SL of day's low
DeleteShivam,
DeleteHope you were able to square off above 6005 for any intraday long trades taken