Bulls keep the Nifty afloat, but volumes keep low. Range bound movements expected.
As discussed on Friday, the Nifty which was "Hovering around Neutrality", managed to open with a positive gap up of 17 points at 6108 and then traded above that opening mark for the entire trading session. The Nifty made a high of 6160 in the last hour of trade, before closing at 6155, amidst low volumes, thus keeping this up move intact, but suspect. We took a trade on the short side and lost 20 points as our SL got hit.
1) The Elder Ray readings : Bull Power rises from +38 to +59 Bear Power reduces from -5 to +8 indicating that the Bulls have a slight advantage as of now, but the Bears are not far away. For today, the Bulls need to overcome the levels of 6170 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6105 to regain their lost grounds.
2) The stochastics are back into the overbought zone.
3) The Nifty has closed above all its key EMAs and also above its 200DMA. However it is at its 100DMA and below its 50DMA.
4) In the above chart, the volumes have kept low in this rise of the Nifty, indicating that the rise may get arrested. The MACD continues to point upwards with the histogram growing in the positive. The ADX is suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now at 5955.
5) Considering the above, our trading plan for the day is as under.
a) Around 6120 we will open fresh long positions with a SL of 6100 and a target of 6180. We will add to these long positions only above 6210.
b) Around 6185 we will open fresh short positions with a SL of 6210 and a target of 6130. We will add to these short positions only below 6100.
Happy Trading !!!
Buy call on MAHINDUGIN hit its target on 21 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 on Friday, the Nifty which was "Hovering around Neutrality", managed to open with a positive gap up of 17 points at 6108 and then traded above that opening mark for the entire trading session. The Nifty made a high of 6160 in the last hour of trade, before closing at 6155, amidst low volumes, thus keeping this up move intact, but suspect. We took a trade on the short side and lost 20 points as our SL got hit.
1) The Elder Ray readings : Bull Power rises from +38 to +59 Bear Power reduces from -5 to +8 indicating that the Bulls have a slight advantage as of now, but the Bears are not far away. For today, the Bulls need to overcome the levels of 6170 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6105 to regain their lost grounds.
2) The stochastics are back into the overbought zone.
3) The Nifty has closed above all its key EMAs and also above its 200DMA. However it is at its 100DMA and below its 50DMA.
4) In the above chart, the volumes have kept low in this rise of the Nifty, indicating that the rise may get arrested. The MACD continues to point upwards with the histogram growing in the positive. The ADX is suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now at 5955.
5) Considering the above, our trading plan for the day is as under.
a) Around 6120 we will open fresh long positions with a SL of 6100 and a target of 6180. We will add to these long positions only above 6210.
b) Around 6185 we will open fresh short positions with a SL of 6210 and a target of 6130. We will add to these short positions only below 6100.
Happy Trading !!!
Buy call on MAHINDUGIN hit its target on 21 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) has triggered and have opened fresh short positions with SL at 6210
ReplyDeleteBooked out at cost near EOD
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