Bulls close the Nifty emphatically post a negative opening. Roadblocks ahead.
As discussed yesterday, we had expected the volatility to continue and that is what the trading session turned out to be. The Nifty opened with a negative gap down of 35 points at 5893 and made a quick low of 5877 within the first hour of trade. However, after that, the Bulls took charge and there was buying throughout the day and the Nifty kept on making newer highs for the day without giving up even 20 points ever. The Nifty finally made a high of 6015 before closing at 6007 with a gain of a whopping 79 points. We did not take any trade as our trading plan got triggered right at the fag end of the trading session.
1) The Elder Ray readings : Bull Power rises from +115 to +129 Bear Power also rises from +46 to -10 indicating that both the Bulls and the Bears are in the reckoning now and this may induce even more volatility. For today the Bulls need to overcome the levels of 6035 to maintain their upwards momentum whereas the Bears need to breach the levels of 5880 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone and are 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 increased with the rise in the Nifty indicating that the up move can continue. The MACD continues to point horizontal with the histogram turning into positive. The ADX is suggesting a loss of momentum for the Bulls. The Parabolic SAR has turned into a Buy signal now with the SL at 5701.
5) Considering the above, our trading plan for the day is as under.
a) Around 5935 we will open fresh long positions with a SL of 5915 and a target of 6055. We will add to these long positions only above 6085.
b) Around 6060 we will open fresh short positions with a SL of 6085 and a target of 5945. We will add to these short positions only below 5915.
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, we had expected the volatility to continue and that is what the trading session turned out to be. The Nifty opened with a negative gap down of 35 points at 5893 and made a quick low of 5877 within the first hour of trade. However, after that, the Bulls took charge and there was buying throughout the day and the Nifty kept on making newer highs for the day without giving up even 20 points ever. The Nifty finally made a high of 6015 before closing at 6007 with a gain of a whopping 79 points. We did not take any trade as our trading plan got triggered right at the fag end of the trading session.
1) The Elder Ray readings : Bull Power rises from +115 to +129 Bear Power also rises from +46 to -10 indicating that both the Bulls and the Bears are in the reckoning now and this may induce even more volatility. For today the Bulls need to overcome the levels of 6035 to maintain their upwards momentum whereas the Bears need to breach the levels of 5880 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone and are 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 increased with the rise in the Nifty indicating that the up move can continue. The MACD continues to point horizontal with the histogram turning into positive. The ADX is suggesting a loss of momentum for the Bulls. The Parabolic SAR has turned into a Buy signal now with the SL at 5701.
5) Considering the above, our trading plan for the day is as under.
a) Around 5935 we will open fresh long positions with a SL of 5915 and a target of 6055. We will add to these long positions only above 6085.
b) Around 6060 we will open fresh short positions with a SL of 6085 and a target of 5945. We will add to these short positions only below 5915.
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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