Nifty halts at the top end of the trading range. Bulls need to defend 6300 now.
As discussed yesterday, the Nifty which was repositioned for a break out, remained that way, that is just repositioned for a break out. The breakout never did materialize as the Nifty did not even come near to our identified zone of 6375 6390. At the end of the day, the Nifty however, maintained its bullish stance, thwarting away all the efforts by the Bears and absorbing all the selling pressure. Global cues at the start of trade this morning are supportive to the Bears and a gap down opening is likely. The further mood on the Nifty will be decided on whether and then how easily the Bears break the 6300 6285 zone for the day.
1) The Elder Ray readings : Bull Power reduces from +74 to +70 Bear Power also reduces from +11 to +30 indicating that both the parties have lost some grounds in this tug of war. For today the Bulls need to overcome the levels of 6365 to maintain their upwards momentum whereas the Bears need to breach the levels of 6295 to regain their lost grounds.
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 reduced with the rise in the Nifty, indicating that the rise is not convincing to a lot of the market participants as yet. The MACD continues to rise but the histogram remains stagnant. The ADX is showing a loss of momentum for the Bulls. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6164.
5) Considering the above, our trading plan for the day is as under.
a) Around 6310 we will open fresh long positions with a SL of 6290 and a target of 6360. We will add to these long positions only above 6395.
b) Around 6375 we will open fresh short positions with a SL of 6395 and a target of 6320. We will add to these short positions only below 6290.
Happy Trading !!!
Buy calls on TATASPONGE & FIEMIND and Sell call on M&MFIN hit their targets on 23 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, the Nifty which was repositioned for a break out, remained that way, that is just repositioned for a break out. The breakout never did materialize as the Nifty did not even come near to our identified zone of 6375 6390. At the end of the day, the Nifty however, maintained its bullish stance, thwarting away all the efforts by the Bears and absorbing all the selling pressure. Global cues at the start of trade this morning are supportive to the Bears and a gap down opening is likely. The further mood on the Nifty will be decided on whether and then how easily the Bears break the 6300 6285 zone for the day.
1) The Elder Ray readings : Bull Power reduces from +74 to +70 Bear Power also reduces from +11 to +30 indicating that both the parties have lost some grounds in this tug of war. For today the Bulls need to overcome the levels of 6365 to maintain their upwards momentum whereas the Bears need to breach the levels of 6295 to regain their lost grounds.
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 reduced with the rise in the Nifty, indicating that the rise is not convincing to a lot of the market participants as yet. The MACD continues to rise but the histogram remains stagnant. The ADX is showing a loss of momentum for the Bulls. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6164.
5) Considering the above, our trading plan for the day is as under.
a) Around 6310 we will open fresh long positions with a SL of 6290 and a target of 6360. We will add to these long positions only above 6395.
b) Around 6375 we will open fresh short positions with a SL of 6395 and a target of 6320. We will add to these short positions only below 6290.
Happy Trading !!!
Buy calls on TATASPONGE & FIEMIND and Sell call on M&MFIN hit their targets on 23 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty has opened right into our buying zone of trading plan (a).
ReplyDeleteWill wait for the first few minutes before taking up this trade and watch how Nifty behaves around this zone.
Have not taken any trade yet.
ReplyDeleteOpened fresh intraday short position at 6300 with SL of 6325
ReplyDelete