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Friday 29 November 2013

Nifty - 29 Nov 2013 - Indecisive at end of month

Nifty stays neutral post expiry. Volatile December on the cards it seems.

Unlike as discussed in our yesterday's post "Expiry jitters", the Nifty traded in a very narrow range of 55 points between 6113 on the higher side and 6068 on the lower side during the entire expiry session. The usual expiry fireworks were missing, underlining the undertone of the Nifty going into the December series. We took two trades, both of which did not materialize, and we made a meager profit of 3 points.

1) The Elder Ray readings : Bull Power rises from -17 to +22 Bear Power reduces from -61 to -23 indicating that the Bulls and the Bears both are in their respective zones and are equidistant from the zero line. For today, the Bulls need to overcome the levels of 6120 to maintain their upwards momentum whereas the Bears need to breach the levels of 6060 to maintain their downwards momentum.

2) The stochastics are in the neutral zone and are looking upwards.

3) The Nifty has closed right in between its key EMAs, however, it has closed 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 continues to point downwards with the histogram too remaining negative. The ADX is confirming the neutrality in the market.

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

a) Around 6050 we will open fresh long positions with a SL of 6020 and a target of 6110. We will add to these long positions only above 6140.

b) Around 6125 we will open fresh short positions with a SL of 6140 and a target of 6060. We will add to these short positions only below 6020.

Happy Trading !!!


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