Nifty leaps big, consolidates, gives highest ever close maintaining Bullish technicals.
As discussed yesterday, Nifty being "Ready for a decisive leap" opened with a bang at 6415. This was at a all time high. However, the Nifty could not sustain these high levels and then started to drift down and lost about 80 points from there when it hit the intraday low of 6345, even that was higher than the earlier highs for the year. Thus the Nifty closed at the highest ever closing point at 6364 and maintained the technicals in the Bullish fervor. There was nothing in the Nifty for intraday traders like us, and we enjoyed sitting out for the day.
1) The Elder Ray readings : Bull Power rises from +109 to +221 Bear Power reduces from +64 to +150 indicating that the Bulls have gone too far too fast but the Bears have got decimated. For today, the Bulls need to overcome the levels of 6445 to maintain their upwards momentum whereas the Bears need to breach the levels of 6225 to regain their lost grounds.
2) The stochastics are in the overbought zone and are still 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 increased with the rise in the Nifty indicating that the up move may continue. The MACD is pointing towards rapid up move with the histogram growing in the positive. The ADX is also suggesting rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6050.
5) Considering the above, our trading plan for the day is as under.
a) Around 6320 we will open fresh long positions with a SL of 6290 and a target of 6400. We will add to these long positions only above 6435.
b) Around 6420 we will open fresh short positions with a SL of 6435 and a target of 6335. We will add to these short positions only below 6290.
Happy Trading !!!
Buy calls on HITACHIHOM & YESBANK hit their targets on 09 Dec 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, Nifty being "Ready for a decisive leap" opened with a bang at 6415. This was at a all time high. However, the Nifty could not sustain these high levels and then started to drift down and lost about 80 points from there when it hit the intraday low of 6345, even that was higher than the earlier highs for the year. Thus the Nifty closed at the highest ever closing point at 6364 and maintained the technicals in the Bullish fervor. There was nothing in the Nifty for intraday traders like us, and we enjoyed sitting out for the day.
1) The Elder Ray readings : Bull Power rises from +109 to +221 Bear Power reduces from +64 to +150 indicating that the Bulls have gone too far too fast but the Bears have got decimated. For today, the Bulls need to overcome the levels of 6445 to maintain their upwards momentum whereas the Bears need to breach the levels of 6225 to regain their lost grounds.
2) The stochastics are in the overbought zone and are still 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 increased with the rise in the Nifty indicating that the up move may continue. The MACD is pointing towards rapid up move with the histogram growing in the positive. The ADX is also suggesting rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6050.
5) Considering the above, our trading plan for the day is as under.
a) Around 6320 we will open fresh long positions with a SL of 6290 and a target of 6400. We will add to these long positions only above 6435.
b) Around 6420 we will open fresh short positions with a SL of 6435 and a target of 6335. We will add to these short positions only below 6290.
Happy Trading !!!
Buy calls on HITACHIHOM & YESBANK hit their targets on 09 Dec 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh long position at 6330 with SL of 6300
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