Nifty has an inside day as it consolidates in a confined range, groping for direction.
As discussed yesterday, it was Bearishness after consolidation on the Nifty. The Nifty opened with a positive gap up of 16 points at 6178 and then traded in the green, albeit not very bullishly. The Nifty made a high of 6192 and a low of 6160 before closing at 6175 with a nett gain of 12 points over the previous close. We sat on the fence and did not venture into this lackluster trading session.
1) The Elder Ray readings : Bull Power reduces from -10 to -32 Bear Power also reduces from -87 to -63 indicative of the lack of conviction on both the sides. For today, the Bulls need to overcome the levels of 6220 to regain their lost grounds whereas the Bears need to breach the levels of 6150 to maintain their downwards momentum.
2) The stochastics are pointing downwards and are almost touching the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA. However it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have risen with the Nifty stagnating indicating the indecision amongst the trading community. The MACD continues to point downwards with the histogram also growing in the negative. The ADX is suggesting loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 6354.
5) Considering the above, our trading plan for the day is as under.
a) Around 6210 we will open fresh short positions with a SL of 6230 and a target of 6160. We will add to these short positions only below 6120.
b) Around 6140 we will open fresh long positions with a SL of 6120 and a target of 6190. We will add to these long positions only above 6230.
Happy Trading !!!
Buy calls on DISHMAN & GRAVITA hit their targets on 08 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it was Bearishness after consolidation on the Nifty. The Nifty opened with a positive gap up of 16 points at 6178 and then traded in the green, albeit not very bullishly. The Nifty made a high of 6192 and a low of 6160 before closing at 6175 with a nett gain of 12 points over the previous close. We sat on the fence and did not venture into this lackluster trading session.
1) The Elder Ray readings : Bull Power reduces from -10 to -32 Bear Power also reduces from -87 to -63 indicative of the lack of conviction on both the sides. For today, the Bulls need to overcome the levels of 6220 to regain their lost grounds whereas the Bears need to breach the levels of 6150 to maintain their downwards momentum.
2) The stochastics are pointing downwards and are almost touching the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA. However it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have risen with the Nifty stagnating indicating the indecision amongst the trading community. The MACD continues to point downwards with the histogram also growing in the negative. The ADX is suggesting loss of momentum for both the Bulls and the Bears. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 6354.
5) Considering the above, our trading plan for the day is as under.
a) Around 6210 we will open fresh short positions with a SL of 6230 and a target of 6160. We will add to these short positions only below 6120.
b) Around 6140 we will open fresh long positions with a SL of 6120 and a target of 6190. We will add to these long positions only above 6230.
Happy Trading !!!
Buy calls on DISHMAN & GRAVITA hit their targets on 08 Jan 2014
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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