Having tested support at 6430, Nifty closes above 6500. Now 6565 may be attempted.
As discussed on Friday, Choppiness continued into a correction on the Nifty. The Nifty opened low with a negative gap down of 46 points at 6447 and then traded bearishly for most of the trading session between 6465 and 6445. Briefly, the Nifty also breached the levels of 6440 twice or thrice during the day. Eventually, the Nifty made a low of 6433. During the last hour of trade though, there was a spike in the Nifty and the Nifty rose sharply above 6480 and made a new intraday high of 6518 before closing at 6504. We took two trades and lost a meager 5 points in those trades.
1) The Elder Ray readings : Bull Power reduces from +176 to +116 Bear Power rises from +91 to +30 indicating that the Bulls are still the flavor of season but the Bears are very near to regaining their lost grounds. For today, the Bulls need to overcome the levels of 6545 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6425 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 decreased with the rise in the Nifty indicating that the rise may meet up with resistance. The MACD continues to point upwards, but the histogram continues to fall although remaining above the zero line. The ADX is suggesting a fall in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up at 6433.
5) Considering the above, our trading plan for the day is as under.
a) Around 6465 we will open fresh long positions with a SL of 6445 and a target of 6535. We will add to these long positions only above 6570.
b) Around 6550 we will open fresh short positions with a SL of 6570 and a target of 6475. We will add to these short positions only below 6445.
Happy Trading !!!
Buy call on SOMANYCERA & Sell call on SUNPHARMA hit their targets on 14 Mar 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, Choppiness continued into a correction on the Nifty. The Nifty opened low with a negative gap down of 46 points at 6447 and then traded bearishly for most of the trading session between 6465 and 6445. Briefly, the Nifty also breached the levels of 6440 twice or thrice during the day. Eventually, the Nifty made a low of 6433. During the last hour of trade though, there was a spike in the Nifty and the Nifty rose sharply above 6480 and made a new intraday high of 6518 before closing at 6504. We took two trades and lost a meager 5 points in those trades.
1) The Elder Ray readings : Bull Power reduces from +176 to +116 Bear Power rises from +91 to +30 indicating that the Bulls are still the flavor of season but the Bears are very near to regaining their lost grounds. For today, the Bulls need to overcome the levels of 6545 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 6425 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 decreased with the rise in the Nifty indicating that the rise may meet up with resistance. The MACD continues to point upwards, but the histogram continues to fall although remaining above the zero line. The ADX is suggesting a fall in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up at 6433.
5) Considering the above, our trading plan for the day is as under.
a) Around 6465 we will open fresh long positions with a SL of 6445 and a target of 6535. We will add to these long positions only above 6570.
b) Around 6550 we will open fresh short positions with a SL of 6570 and a target of 6475. We will add to these short positions only below 6445.
Happy Trading !!!
Buy call on SOMANYCERA & Sell call on SUNPHARMA hit their targets on 14 Mar 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. Opened fresh intraday short position at 6552 with SL of 6572
ReplyDeleteBooked partial profit in short position at 6522. Holding part position with SL of 6552 now.
ReplyDeleteDid not square off though SL triggered earlier, as Futures did not rise by the same amount.
SL shifted down to 6532 now.
ReplyDeleteSL 6512 now
ReplyDeleteBooked out at 6512.
ReplyDeleteTotal profit 30 + 40 =70 points