Nifty continues to reach higher and sell off, maintaining equilibrium in a narrow range.
As discussed in our last post, "Rangebound consolidation" continued for the second trading session too. The Nifty, riding high on global cues, opened with a positive gap up of 23 points at 6085, made a high of 6107 and a low of 6077 before closing at 6084, trading in a tight 30 points range. Nifty's inability to cross the gap zone at 6100 6110 shows weakness at higher levels, while its higher lows in 7 consecutive trading sessions is indicative of rise in support levels.
1) The Elder Ray readings : Bull Power rises from -9 to +17 Bear Power reduces from -38 to -13 indicating the equality amongst the Bulls and the Bears as of now. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6070 to maintain their downwards momentum.
2) The stochastics are in the neutral region.
3) The Nifty has now closed below its 21EMA and 13EMA, however it is above its 8EMA. The Nifty is also below its 50DMA and 100DMA but is above its 200DMA.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move can continue. The MACD is still not triggered on the up side and the histogram continues to remain in the negative. The ADX is triggered on the up side, but the overall momentum is reducing. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6108.
5) Considering the above, our trading plan for the day is as under.
a) Around 6125 we will open fresh short positions with a SL of 6145 and a target of 6065. We will add to these short positions only below 6030.
b) Around 6050 we will open fresh long positions with a SL of 6030 and a target of 6110. We will add to these long positions only above 6145.
Happy Trading !!!
Buy calls on MOTHERSUMI and MINDTREE hit their targets on 12 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, "Rangebound consolidation" continued for the second trading session too. The Nifty, riding high on global cues, opened with a positive gap up of 23 points at 6085, made a high of 6107 and a low of 6077 before closing at 6084, trading in a tight 30 points range. Nifty's inability to cross the gap zone at 6100 6110 shows weakness at higher levels, while its higher lows in 7 consecutive trading sessions is indicative of rise in support levels.
1) The Elder Ray readings : Bull Power rises from -9 to +17 Bear Power reduces from -38 to -13 indicating the equality amongst the Bulls and the Bears as of now. For today, the Bulls need to overcome the levels of 6110 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6070 to maintain their downwards momentum.
2) The stochastics are in the neutral region.
3) The Nifty has now closed below its 21EMA and 13EMA, however it is above its 8EMA. The Nifty is also below its 50DMA and 100DMA but is above its 200DMA.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the up move can continue. The MACD is still not triggered on the up side and the histogram continues to remain in the negative. The ADX is triggered on the up side, but the overall momentum is reducing. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6108.
5) Considering the above, our trading plan for the day is as under.
a) Around 6125 we will open fresh short positions with a SL of 6145 and a target of 6065. We will add to these short positions only below 6030.
b) Around 6050 we will open fresh long positions with a SL of 6030 and a target of 6110. We will add to these long positions only above 6145.
Happy Trading !!!
Buy calls on MOTHERSUMI and MINDTREE hit their targets on 12 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan(b) just got triggered, have opened fresh long position at 6052 with a SL of 6030
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