Highly overbought Nifty at a critical juncture on Expiry day. Expect volatility to rise.
As discussed yesterday, the Bulls held on to the gains on the Nifty throughout a rangebound trading session. The Nifty after opening with a positive gap up of 26 points at 6616 went up to 6627 but got resisted just below our identified resistance zone of 6635 and then slid gradually. The Nifty made a low of 6581 before closing at 6601 with a gain of just 11 points. Thus the Nifty made a red candle on the daily chart although closing in the green above its previous close. Now today's closing needs to be watched out for. It may be forming a evening star.
1) The Elder ray readings : Bull Power rises from +111 to +126 Bear Power reduces from +60 to +79 indicating that the Bulls are still driving the Nifty. For today, the Bulls need to overcome the levels of 6645 to maintain their upwards momentum whereas the Bears need to breach the levels of 6520 to regain their lost grounds.
2) The stochastics are still languishing 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 increased with the Nifty losing steam, indicating resistance developing at higher levels. The MACD continues to point up with the histogram also remaining above the zero line. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now propped up to 6529.
5) Considering the above, our trading plan for the day is as under.
a) Around 6560 we will open fresh long positions with a SL of 6540 and a target of 6630. We will add to these long positions only above 6660.
b) Around 6640 we will open fresh short positions with a SL of 6660 and a target of 6570. We will add to these short positions only below 6540.
Happy Trading !!!
Buy call on BANCOINDIA hit its target on 26 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 yesterday, the Bulls held on to the gains on the Nifty throughout a rangebound trading session. The Nifty after opening with a positive gap up of 26 points at 6616 went up to 6627 but got resisted just below our identified resistance zone of 6635 and then slid gradually. The Nifty made a low of 6581 before closing at 6601 with a gain of just 11 points. Thus the Nifty made a red candle on the daily chart although closing in the green above its previous close. Now today's closing needs to be watched out for. It may be forming a evening star.
1) The Elder ray readings : Bull Power rises from +111 to +126 Bear Power reduces from +60 to +79 indicating that the Bulls are still driving the Nifty. For today, the Bulls need to overcome the levels of 6645 to maintain their upwards momentum whereas the Bears need to breach the levels of 6520 to regain their lost grounds.
2) The stochastics are still languishing 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 increased with the Nifty losing steam, indicating resistance developing at higher levels. The MACD continues to point up with the histogram also remaining above the zero line. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now propped up to 6529.
5) Considering the above, our trading plan for the day is as under.
a) Around 6560 we will open fresh long positions with a SL of 6540 and a target of 6630. We will add to these long positions only above 6660.
b) Around 6640 we will open fresh short positions with a SL of 6660 and a target of 6570. We will add to these short positions only below 6540.
Happy Trading !!!
Buy call on BANCOINDIA hit its target on 26 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 and have opened fresh intraday short position at 6640 with SL of 6660
ReplyDeleteSL hit at 6660 booked out
ReplyDelete