Within two session, Nifty turns from neutral to Bullish. "Buy the dips" is the mantra.
Since our last post "Indecisive at the end of month", the Nifty has moved up by over a 100 points and has turned the technicals in favor of the Bulls. Yesterday, we again took a trading holiday owing to preoccupation with personal issues. On a broader frame, the Nifty is consolidating within a range of 5970 and 6230 for the past 13 sessions, and one more dip towards the lows of this range cannot be ruled out. However, the recent technicals are only pointing at a new high very soon.
1) The Elder Ray readings : Bull Power rises from +79 to +109 Bear Power reduces from 0 to +51 indicating that the Bulls are now in the driving seat on the Nifty. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum whereas the Bears need to breach the levels of 6135 to regain their lost grounds.
2) The stochastics are approaching the overbought zone but are not quite there yet.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the up move may find resistance. The MACD has just turned positive with the histogram too moving above the zero line. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR too has turned into a Buy signal with the initial SL placed at 5978.
5) Considering the above, our trading plan for the day is as under.
a) Around 6165 we will open fresh long positions with a SL of 6145 and a target of 6255. We will add to these long positions only above 6290.
b) Around 6270 we will open fresh short positions with a SL of 6290 and a target of 6175. We will add to these short positions only below 6145.
Happy Trading !!!
Buy calls on SRF ZUARIGLOB FDC & JSWHL hit their targets on 02 Dec 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Since our last post "Indecisive at the end of month", the Nifty has moved up by over a 100 points and has turned the technicals in favor of the Bulls. Yesterday, we again took a trading holiday owing to preoccupation with personal issues. On a broader frame, the Nifty is consolidating within a range of 5970 and 6230 for the past 13 sessions, and one more dip towards the lows of this range cannot be ruled out. However, the recent technicals are only pointing at a new high very soon.
1) The Elder Ray readings : Bull Power rises from +79 to +109 Bear Power reduces from 0 to +51 indicating that the Bulls are now in the driving seat on the Nifty. For today, the Bulls need to overcome the levels of 6245 to maintain their upwards momentum whereas the Bears need to breach the levels of 6135 to regain their lost grounds.
2) The stochastics are approaching the overbought zone but are not quite there yet.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the up move may find resistance. The MACD has just turned positive with the histogram too moving above the zero line. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR too has turned into a Buy signal with the initial SL placed at 5978.
5) Considering the above, our trading plan for the day is as under.
a) Around 6165 we will open fresh long positions with a SL of 6145 and a target of 6255. We will add to these long positions only above 6290.
b) Around 6270 we will open fresh short positions with a SL of 6290 and a target of 6175. We will add to these short positions only below 6145.
Happy Trading !!!
Buy calls on SRF ZUARIGLOB FDC & JSWHL hit their targets on 02 Dec 2013
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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