Nifty breaks out at open, then lingers staying bullish. Patience & Caution required.
We have been on a break over this weekend. The Nifty has staged a breakout yesterday after opening at 6511 with a positive gap up of 17 points. Right at the opening within the first few minutes, the Nifty managed to cross the resistance threshold of 6545 and also its previous all time high of 6575. The Nifty traded in a confined but bullish range of 15 points over the rest of the trading session. The Nifty made a all time high of 6592 before closing at a all time high close at 6584. However, looking at the volumes and advance decline ratio, we feel that caution is required for entering fresh long positions at this juncture.
1) The Elder Ray readings : Bull Power rises from +75 to +124 Bear Power reduces from +37 to +43 indicating the strong hold of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 6610 to maintain their upwards momentum whereas the Bears need to breach the levels of 6490 to regain their lost grounds.
2) The stochastics continue to relish 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 up move may find resistance soon. The MACD continues to float but the histogram is diminishing although maintaining itself above the zero line. The ADX is suggesting a rise in the Bullish momentum but a fall in the overall momentum. The Parabolic SAR continues with its Buy signal with the SL remaining flat around 6481.
5) Considering the above, our trading plan for the day is as under.
a) Around 6545 we will open fresh long positions with a SL of 6525 and a target of 6605. We will add to these long positions only above 6630.
b) Around 6610 we will open fresh short positions with a SL of 6630 and a target of 6550. We will add to these short positions only below 6525.
Happy Trading !!!
Buy calls on IGARASHI AMTEKINDIA BEML JKLAKSHMI SEAMECLTD hit their targets on 24 Mar 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
We have been on a break over this weekend. The Nifty has staged a breakout yesterday after opening at 6511 with a positive gap up of 17 points. Right at the opening within the first few minutes, the Nifty managed to cross the resistance threshold of 6545 and also its previous all time high of 6575. The Nifty traded in a confined but bullish range of 15 points over the rest of the trading session. The Nifty made a all time high of 6592 before closing at a all time high close at 6584. However, looking at the volumes and advance decline ratio, we feel that caution is required for entering fresh long positions at this juncture.
1) The Elder Ray readings : Bull Power rises from +75 to +124 Bear Power reduces from +37 to +43 indicating the strong hold of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 6610 to maintain their upwards momentum whereas the Bears need to breach the levels of 6490 to regain their lost grounds.
2) The stochastics continue to relish 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 up move may find resistance soon. The MACD continues to float but the histogram is diminishing although maintaining itself above the zero line. The ADX is suggesting a rise in the Bullish momentum but a fall in the overall momentum. The Parabolic SAR continues with its Buy signal with the SL remaining flat around 6481.
5) Considering the above, our trading plan for the day is as under.
a) Around 6545 we will open fresh long positions with a SL of 6525 and a target of 6605. We will add to these long positions only above 6630.
b) Around 6610 we will open fresh short positions with a SL of 6630 and a target of 6550. We will add to these short positions only below 6525.
Happy Trading !!!
Buy calls on IGARASHI AMTEKINDIA BEML JKLAKSHMI SEAMECLTD hit their targets on 24 Mar 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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