Nifty continues to make higher highs higher lows and higher close. Neutral as of now.
As discussed on Friday, it was evident that the Bears were losing grip on the Nifty. The Nifty opened with a nice positive gap up of 41 points at 6078 and then traded in the positive territory for the entire trading session, notwithstanding the thudding fall of almost 50 points intraday, that came during the session. The Nifty closed at a promising level of 6063 before making a intraday low of 6031.
1) The Elder Ray readings : Bull Power rises from -61 to -23 Bear Power reduces from -144 to -72 indicating that the Bulls are now within striking distance of regaining their territory. For today, the Bulls need to overcome the levels of 6095 to regain their lost grounds whereas the Bears need to breach the levels of 6020 to maintain their downwards momentum.
2) The stochastics are now out of the oversold zone and are looking up.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA(5978)
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the up move may hit roadblocks ahead. The MACD is bottoming out but has not yet triggered a Buy, the histogram remains in the negative. The ADX is suggesting a rise in the Bullish momentum and a fall in the Bearish momentum, but it is still favoring the Bears. The Parabolic SAR continues with its Sell Signal with the SL now brought down to 6173.
5) Considering the above, our trading plan for the day is as under.
a) Around 6100 we will open fresh short positions with a SL of 6130 and a target of 6040. We will add to these short positions only below 6000.
b) Around 6025 we will open fresh long positions with a SL of 6000 and a target of 6070. We will add to these long positions only above 6130.
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 on Friday, it was evident that the Bears were losing grip on the Nifty. The Nifty opened with a nice positive gap up of 41 points at 6078 and then traded in the positive territory for the entire trading session, notwithstanding the thudding fall of almost 50 points intraday, that came during the session. The Nifty closed at a promising level of 6063 before making a intraday low of 6031.
1) The Elder Ray readings : Bull Power rises from -61 to -23 Bear Power reduces from -144 to -72 indicating that the Bulls are now within striking distance of regaining their territory. For today, the Bulls need to overcome the levels of 6095 to regain their lost grounds whereas the Bears need to breach the levels of 6020 to maintain their downwards momentum.
2) The stochastics are now out of the oversold zone and are looking up.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA(5978)
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the up move may hit roadblocks ahead. The MACD is bottoming out but has not yet triggered a Buy, the histogram remains in the negative. The ADX is suggesting a rise in the Bullish momentum and a fall in the Bearish momentum, but it is still favoring the Bears. The Parabolic SAR continues with its Sell Signal with the SL now brought down to 6173.
5) Considering the above, our trading plan for the day is as under.
a) Around 6100 we will open fresh short positions with a SL of 6130 and a target of 6040. We will add to these short positions only below 6000.
b) Around 6025 we will open fresh long positions with a SL of 6000 and a target of 6070. We will add to these long positions only above 6130.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.