Nifty maintains Bullish stance amidst rising volatility. Buy the dips and Sell the rises.
As discussed on Friday, the Global cues were worrying, and the Nifty turned volatile in a trading session that saw the Nifty close very very flat. The Nifty opened with a negative gap of 18 points at 5891 and then traded with a rising volatility in a range of 65 points between 5885 and 5950, twice hitting both the lows and the highs during the day and finally closing flat with a loss of 2 points. We did not venture into any trades and were happy to watch the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power rises from +79 to +102 Bear Power reduces from -36 to +37 indicating that the Bulls are now in control and that the Bears have again lost their grounds. For today, the Bulls need to overcome the levels of 5960 to maintain their upwards momentum whereas the Bears need to breach the levels of 5855 to regain their lost grounds.
2) The stochastics are in the neutral zone and are pointing flat.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the Nifty remaining flat, indicating indecision amongst the traders. The MACD continues to be on the negative side although it is flattening out too. The ADX is now suggesting a mild bias towards the Bulls. The Parabolic SAR continues to give out its sell call with the SL now shifted down to 6014.
5) Considering the above, our trading plan for the day is as under.
a) Around 5945 we will open fresh short positions with a SL of 5975 and a target of 5855. We will add to these short positions only below 5815.
b) Around 5845 we will open fresh long positions with a SL of 5815 and a target of 5935. We will add to these long positions only above 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, the Global cues were worrying, and the Nifty turned volatile in a trading session that saw the Nifty close very very flat. The Nifty opened with a negative gap of 18 points at 5891 and then traded with a rising volatility in a range of 65 points between 5885 and 5950, twice hitting both the lows and the highs during the day and finally closing flat with a loss of 2 points. We did not venture into any trades and were happy to watch the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power rises from +79 to +102 Bear Power reduces from -36 to +37 indicating that the Bulls are now in control and that the Bears have again lost their grounds. For today, the Bulls need to overcome the levels of 5960 to maintain their upwards momentum whereas the Bears need to breach the levels of 5855 to regain their lost grounds.
2) The stochastics are in the neutral zone and are pointing flat.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the Nifty remaining flat, indicating indecision amongst the traders. The MACD continues to be on the negative side although it is flattening out too. The ADX is now suggesting a mild bias towards the Bulls. The Parabolic SAR continues to give out its sell call with the SL now shifted down to 6014.
5) Considering the above, our trading plan for the day is as under.
a) Around 5945 we will open fresh short positions with a SL of 5975 and a target of 5855. We will add to these short positions only below 5815.
b) Around 5845 we will open fresh long positions with a SL of 5815 and a target of 5935. We will add to these long positions only above 5975.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) has triggered. Opened fresh long positions at 5840 with a SL of 5815
ReplyDeleteSquared off intraday long position opened at 5840 in the morning at 5880 with a profit of 40 points.
ReplyDelete