Bulls maintain their advantage and now a global rally comes to their aid.
As discussed yesterday, we expected roadblocks ahead for bulls. The Nifty opened at 6001 with a minor negative gap of 6 points and made a quick high of 6031 and then traded bearishly. However, the Bears were not able to breach the support at 5979 and the Nifty after making a low of 5980 recovered and traded in a narrow range. The Nifty finally closed bullishly at 6021 with a gain of 14 points. We did not take any trade yesterday.
1) The Elder Ray readings : Bull Power reduces from +129 to +128 Bear Power also reduces from -10 to +74 indicating that the Bulls have held their control over the Nifty and now the Bulls are out of their safe zone. For today, the Bulls need to overcome the levels of 6055 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5925 to regain their lost grounds.
2) The stochastics are 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 decreased with the small rise in the Nifty indicating that the market is waiting in high anticipation. The MACD continues to point horizontal with the histogram now moving into the positive. The ADX is suggesting loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues with its buy signal with the SL now shifted up to 5708.
5) Considering the above, our trading plan for the day is as under.
a) Around 6080 we will open fresh short positions with a SL of 6105 and a target of 5985. We will add to these short positions only below 5935.
b) Around 5955 we will open fresh long positions with a SL of 5935 and a target of 6055. We will add to these long positions only above 6105.
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 expected roadblocks ahead for bulls. The Nifty opened at 6001 with a minor negative gap of 6 points and made a quick high of 6031 and then traded bearishly. However, the Bears were not able to breach the support at 5979 and the Nifty after making a low of 5980 recovered and traded in a narrow range. The Nifty finally closed bullishly at 6021 with a gain of 14 points. We did not take any trade yesterday.
1) The Elder Ray readings : Bull Power reduces from +129 to +128 Bear Power also reduces from -10 to +74 indicating that the Bulls have held their control over the Nifty and now the Bulls are out of their safe zone. For today, the Bulls need to overcome the levels of 6055 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5925 to regain their lost grounds.
2) The stochastics are 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 decreased with the small rise in the Nifty indicating that the market is waiting in high anticipation. The MACD continues to point horizontal with the histogram now moving into the positive. The ADX is suggesting loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues with its buy signal with the SL now shifted up to 5708.
5) Considering the above, our trading plan for the day is as under.
a) Around 6080 we will open fresh short positions with a SL of 6105 and a target of 5985. We will add to these short positions only below 5935.
b) Around 5955 we will open fresh long positions with a SL of 5935 and a target of 6055. We will add to these long positions only above 6105.
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) got triggered and have opened fresh intraday short position at 6085 with a SL of 6105.
ReplyDeleteHI, 6085 on Spot or Future??
ReplyDeleteDKG,
ReplyDeleteValues mentioned here are always for the spot. Although we trade in the futures, we always focus on the spot price and do not give much importance to the premium.
Booked out with a loss of 10 points at 6095 as no point in waiting any further for the day.
ReplyDelete