Nifty - 18 Nov 2013 - Bullish start of a fresh week

Owing to global cues, the Nifty to start on a Bullish note after a long weekend.

In our last post, which now seems to be long ago, owing to this long weekend, we had said that "Bears tighten the noose". However, the Nifty opened at 6037 with a whopping 47 points positive up gap and then never really broke that opening mark. The Nifty then ventured near the two days high of 6109, but did not cross it. The Nifty made a high of 6102 before closing at 6056 with a gain of 67 points. We had to alter our trading plan on the trot and took a trade in the short direction, which yielded us a profit of 35 points.

1) The Elder Ray readings : Bull Power rises from -91 to -20 Bear Power reduces from -160 to -85 indicating that the Bulls are on the verge of making a comeback, however the Bears cannot be written off as yet. For today, the Bulls need to overcome the levels of 6115 to regain their lost grounds whereas the Bears need to breach the levels of 6025 to maintain their downwards momentum.

2) The stochastics are in the oversold zone and are pointing upwards.

3) The Nifty has closed below its key EMAs but has closed above all its key DMAs.

 

4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may get arrested. The MACD continues to point downwards, however the histogram is contracting in the negative. The ADX is suggesting a rise in the Bullish momentum and a fall in the Bearish momentum, however, Bears are still in the favor. The Parabolic SAR continues with its sell signal with the SL now brought down to 6277.

5) Considering the above, our trading plan for the day is as under.

a) Below 6090 we will open fresh short positions with a SL of 6120 and a target of 6040. We will add to these short positions only below 6015.

b) Around 6035 we will open fresh long positions with a SL of 6015 and a target of 6085. We will add to these long positions only above 6120.

Happy Trading !!! 

Buy call on INFOTECENT hit its target on 14 Nov 2013

Also visit Just Nifty and the Nifty Range blogs.



For cash market recommendations see our Daily Pre Market calls on NSE