After a two day down move, the Bulls take over the control. Volatility may unleash.
On Friday, we expected the Bias to turn Bearish. However, the Bulls had other ideas. The Nifty opened with a positive gap of 25 points at 6071 and then swiftly moved across our identified resistance zone of 6095 to 6115 and then never looked back. The Nifty closed at 6189 after making a high of 6201 making a gain of 144 points. We took a trade on the long side at 6122 and booked out with a profit of 60 points at the EOD.
1) The Elder Ray readings : Bull Power rises from +124 to +185 Bear Power reduces from +45 to +55 indicating that the Bulls are in control of the Nifty and that the Bears need to come in thick and fast to be of some semblance in this scenario. For today, the Bulls need to overcome the levels of 6230 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6040 to regain their lost grounds.
2) The stochastics remain in the overbought zone and are pointing horizontal.
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 may continue. The MACD has also started rising with the histogram remaining in the positive. The ADX is also suggesting a rise in the Bullish momentum and a loss of Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 5856.
5) Considering the above, our trading plan for the day is as under.
a) Around 6135 we will open fresh long positions with a SL of 6110 and a target of 6225. We will add to these long positions only above 6265.
b) Around 6245 we will open fresh short positions with a SL of 6265 and a target of 6150. We will add to these short positions only below 6110.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, we expected the Bias to turn Bearish. However, the Bulls had other ideas. The Nifty opened with a positive gap of 25 points at 6071 and then swiftly moved across our identified resistance zone of 6095 to 6115 and then never looked back. The Nifty closed at 6189 after making a high of 6201 making a gain of 144 points. We took a trade on the long side at 6122 and booked out with a profit of 60 points at the EOD.
1) The Elder Ray readings : Bull Power rises from +124 to +185 Bear Power reduces from +45 to +55 indicating that the Bulls are in control of the Nifty and that the Bears need to come in thick and fast to be of some semblance in this scenario. For today, the Bulls need to overcome the levels of 6230 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6040 to regain their lost grounds.
2) The stochastics remain in the overbought zone and are pointing horizontal.
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 may continue. The MACD has also started rising with the histogram remaining in the positive. The ADX is also suggesting a rise in the Bullish momentum and a loss of Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 5856.
5) Considering the above, our trading plan for the day is as under.
a) Around 6135 we will open fresh long positions with a SL of 6110 and a target of 6225. We will add to these long positions only above 6265.
b) Around 6245 we will open fresh short positions with a SL of 6265 and a target of 6150. We will add to these short positions only below 6110.
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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