Bulls take the Nifty past resistances, but need to do more to keep the Bears at Bay.
After a two day off for kite flying, we are back. The Nifty, with a widening trading range, is now poised for a break out yet again. This is the fourth attempt since Nov 2013, for the Nifty to break out. The trend has not yet fully resolved, with the EMAs still in a tight range of just 12 points. If the Bears do not come in within the next couple of days, this EMA squeeze will get resolved on the up side and the Bull trend might get confirmed.
1) The Elder Ray readings : Bull Power rises from +58 to +89 Bear Power reduces from +12 to +29 indicating that the Bulls have taken the charge, but the Bears are not far off as yet. For today the Bulls need to overcome the levels of 6340 to maintain their upwards momentum whereas the Bears need to breach the levels of 6235 to regain their lost grounds.
2) The fast stochastics are already in the overbought zone, with the slow stochastics following a little below the overbought zone.
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 increased with the rise in the Nifty indicating that the rise may continue. The MACD has turned positive with the histogram too turning above the zero line. The ADX is suggesting a mild rise in the Bullish momentum. The Parabolic SAR continues with its sell signal with the SL now lowered to 6325. It should be noted that for the last three times, the Parabolic SAR has given negative returns.
5) Considering the above, our trading plan for the day is as under.
a) Around 6280 we will open fresh long positions with a SL of 6255 and a target of 6350. We will add to these long positions only above 6380.
b) Around 6360 we will open fresh short positions with a SL of 6380 and a target of 6290. We will add to these short positions only below 6255.
Happy Trading !!!
Buy calls on INFY & IPCALAB hit their targets on 15 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
After a two day off for kite flying, we are back. The Nifty, with a widening trading range, is now poised for a break out yet again. This is the fourth attempt since Nov 2013, for the Nifty to break out. The trend has not yet fully resolved, with the EMAs still in a tight range of just 12 points. If the Bears do not come in within the next couple of days, this EMA squeeze will get resolved on the up side and the Bull trend might get confirmed.
1) The Elder Ray readings : Bull Power rises from +58 to +89 Bear Power reduces from +12 to +29 indicating that the Bulls have taken the charge, but the Bears are not far off as yet. For today the Bulls need to overcome the levels of 6340 to maintain their upwards momentum whereas the Bears need to breach the levels of 6235 to regain their lost grounds.
2) The fast stochastics are already in the overbought zone, with the slow stochastics following a little below the overbought zone.
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 increased with the rise in the Nifty indicating that the rise may continue. The MACD has turned positive with the histogram too turning above the zero line. The ADX is suggesting a mild rise in the Bullish momentum. The Parabolic SAR continues with its sell signal with the SL now lowered to 6325. It should be noted that for the last three times, the Parabolic SAR has given negative returns.
5) Considering the above, our trading plan for the day is as under.
a) Around 6280 we will open fresh long positions with a SL of 6255 and a target of 6350. We will add to these long positions only above 6380.
b) Around 6360 we will open fresh short positions with a SL of 6380 and a target of 6290. We will add to these short positions only below 6255.
Happy Trading !!!
Buy calls on INFY & IPCALAB hit their targets on 15 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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