Nifty continues to consolidate as it drifts downwards, maintains Bullish stance yet.
In our yesterday's post, we had expected "Nifty to stay Bullish". The Nifty however, could not sustain the opening highs and traded in the red for the entire trading session. Having said that, the Nifty also took good support around our identified buying zone and closed maintaining its Bullish stance as of now. The Nifty traded in a range of 56 points losing 31 points from its previous close and without threatening the previous day's range at all, which augurs for caution for short term bulls. We took a trade on the long side and could scrape out with a meager profit of just 8 points by EOD.
1) The Elder Ray readings : Bull Power reduces from +221 to +148 Bear Power rises from +150 to +93 indicating that the Bears have a lot to do to come back in the reckoning as yet. For today, the Bulls need to overcome the levels of 6385 to maintain their upwards momentum whereas the Bears need to breach the levels of 6235 to regain their downwards momentum.
2) The stochastics continue to remain in the overbought zone.
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 fall in the Nifty indicating that the down move may continue. The MACD continues to point upwards with the histogram too rising in the positive. The ADX is suggesting a fall in the Bullish momentum, but is still preferring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 6042.
5) Considering the above, our trading plan for the day is as under.
a) Around 6290 we will open fresh long positions with a SL of 6260 and a target of 6365. We will add to these long positions only above 6405.
b) Around 6385 we will open fresh short positions with a SL of 6405 and a target of 6300. We will add to these short positions only below 6260.
Happy Trading !!!
Buy calls on VOLTAS & HEROMOTOCO hit their targets on 10 Dec 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post, we had expected "Nifty to stay Bullish". The Nifty however, could not sustain the opening highs and traded in the red for the entire trading session. Having said that, the Nifty also took good support around our identified buying zone and closed maintaining its Bullish stance as of now. The Nifty traded in a range of 56 points losing 31 points from its previous close and without threatening the previous day's range at all, which augurs for caution for short term bulls. We took a trade on the long side and could scrape out with a meager profit of just 8 points by EOD.
1) The Elder Ray readings : Bull Power reduces from +221 to +148 Bear Power rises from +150 to +93 indicating that the Bears have a lot to do to come back in the reckoning as yet. For today, the Bulls need to overcome the levels of 6385 to maintain their upwards momentum whereas the Bears need to breach the levels of 6235 to regain their downwards momentum.
2) The stochastics continue to remain in the overbought zone.
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 fall in the Nifty indicating that the down move may continue. The MACD continues to point upwards with the histogram too rising in the positive. The ADX is suggesting a fall in the Bullish momentum, but is still preferring the Bulls. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 6042.
5) Considering the above, our trading plan for the day is as under.
a) Around 6290 we will open fresh long positions with a SL of 6260 and a target of 6365. We will add to these long positions only above 6405.
b) Around 6385 we will open fresh short positions with a SL of 6405 and a target of 6300. We will add to these short positions only below 6260.
Happy Trading !!!
Buy calls on VOLTAS & HEROMOTOCO hit their targets on 10 Dec 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) just triggered. Opened fresh long position at 6292 with a SL of 6260
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