At the start of a fresh series, Bullish grip on the Nifty. Caution required though.
On Wednesday, the Nifty continued its Bullish march and never looked like giving up any of its gains. Today, at the start of a fresh series, the Bulls still hold on to their grip on the Nifty. However, caution should be exercised at higher levels.
1) The Elder Ray readings : Bull Power rises from +92 to +105 Bear Power reduces from +51 to +61 indicating that the Bulls are strengthening their control on the Nifty. For today, the Bulls need to overcome the levels of 6260 to maintain their upwards momentum whereas the Bears need to breach the levels of 6155 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue as of now. The MACD continues to point upwards with the histogram also growing in the positive. The ADX is suggesting a rise in the Bullish momentum, but is approaching unsustainable levels. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6001.
5) Considering the above, our trading plan for the day is as under.
a) Around 6265 we will open fresh short positions with a SL of 6285 and a target of 6220. We will add to these short positions only below 6190.
b) Around 6210 we will open fresh long positions with a SL of 6190 and a target of 6255. We will add to these long positions only above 6285.
Happy Trading !!!
Buy calls on ABB & BAJAJELEC hit their targets on 26 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
On Wednesday, the Nifty continued its Bullish march and never looked like giving up any of its gains. Today, at the start of a fresh series, the Bulls still hold on to their grip on the Nifty. However, caution should be exercised at higher levels.
1) The Elder Ray readings : Bull Power rises from +92 to +105 Bear Power reduces from +51 to +61 indicating that the Bulls are strengthening their control on the Nifty. For today, the Bulls need to overcome the levels of 6260 to maintain their upwards momentum whereas the Bears need to breach the levels of 6155 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty has closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have increased with the rise in the Nifty indicating that the rise may continue as of now. The MACD continues to point upwards with the histogram also growing in the positive. The ADX is suggesting a rise in the Bullish momentum, but is approaching unsustainable levels. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6001.
5) Considering the above, our trading plan for the day is as under.
a) Around 6265 we will open fresh short positions with a SL of 6285 and a target of 6220. We will add to these short positions only below 6190.
b) Around 6210 we will open fresh long positions with a SL of 6190 and a target of 6255. We will add to these long positions only above 6285.
Happy Trading !!!
Buy calls on ABB & BAJAJELEC hit their targets on 26 Feb 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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