Nifty forms a NR7 day, idling between supports & resistances. Big move soon.
As discussed yesterday, the Nifty had passed its test of supports and now is hovering bullishly but not able to surmount the resistances and the falling trendline. The Nifty in doing so, has formed a NR7 day yesterday and a big move on the either side may be expected soon. The critical levels to watch out for during the next couple of trading sessions would be 6250 and 6350 on either side.
1) The Elder Ray readings : Bull Power rises from +50 to +65 Bear Power reduces from -14 to +32 indicating that the Bears have lost their grounds within two days of recovering it. For today, the Bulls need to overcome the levels of 6345 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6270 to regain their lost grounds.
2) The stochastics keep on hovering just below 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 Nifty stagnating, indicating that there is growing participation from both sides. The MACD continues to point upwards with the histogram also remaining above the zero line and growing. The ADX is indicating the rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL at 6152.
5) Considering the above, our trading plan for the day is as under.
a) Around 6275 we will open fresh long positions with a SL of 6255 and a target of 6340. We will add to these long positions only above 6370.
b) Around 6350 we will open fresh short positions with a SL of 6370 and a target of 6285. We will add to these short positions only below 6255.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty had passed its test of supports and now is hovering bullishly but not able to surmount the resistances and the falling trendline. The Nifty in doing so, has formed a NR7 day yesterday and a big move on the either side may be expected soon. The critical levels to watch out for during the next couple of trading sessions would be 6250 and 6350 on either side.
1) The Elder Ray readings : Bull Power rises from +50 to +65 Bear Power reduces from -14 to +32 indicating that the Bears have lost their grounds within two days of recovering it. For today, the Bulls need to overcome the levels of 6345 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6270 to regain their lost grounds.
2) The stochastics keep on hovering just below 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 Nifty stagnating, indicating that there is growing participation from both sides. The MACD continues to point upwards with the histogram also remaining above the zero line and growing. The ADX is indicating the rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL at 6152.
5) Considering the above, our trading plan for the day is as under.
a) Around 6275 we will open fresh long positions with a SL of 6255 and a target of 6340. We will add to these long positions only above 6370.
b) Around 6350 we will open fresh short positions with a SL of 6370 and a target of 6285. We will add to these short positions only below 6255.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty achieves targets of both trading plans without triggering either of them.
ReplyDeleteTrading plan(b) has triggered now, well almost. But it is too late in the day to take that trade.
ReplyDelete