Although staying Bullish, Nifty shows early signs of topping out. Caution solicited.
As discussed yesterday, we saw the Bulls on rampage, right at the opening of trading, and although the last 30 minutes of trade resemble a topping out pattern, the technicals still remain in favor of the Bulls. The Nifty opened with a positive gap up of 7 points at 6803 and then traded sluggishly within a confined range for the entire day, but all the time maintaining above the support zone (identified by us at 6740). However, the Bulls could make a high also below our identified resistance zone at 6840. The Nifty thus consolidated within a range of 6777 on the lower side and 6819 on the higher side. The Nifty closed flat at 6796. The last half hour of trade, where the Nifty lost all its daily gains, makes us wary of this uptrend getting halted. Also one need to watch out for a developing evening star pattern on the daily charts.
1) The Elder Ray readings : Bull Power reduces from +136 to +132 Bear Power also reduces from +36 to +90 indicating that the tug of war may have reached its decisive stage. For today, the Bulls need to overcome the levels of 6840 to maintain their upwards momentum whereas the Bears need to breach the levels of 6705 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 increased with the Nifty remaining flat, indicating added participation with both sided conviction. The MACD continues to float at the top with the histogram being minute just above the zero line. The ADX is suggesting a drop in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 6554.
5) Considering the above, our trading plan for the day is as under.
a) Around 6835 we will open fresh short positions with a SL of 6850 and a target of 6770. We will add to these short positions only below 6740.
b) Around 6755 we will open fresh long positions with a SL of 6740 and a target of 6820. We will add to these long positions only above 6850.
Happy Trading !!!
Buy calls on BEML ELECON & HEIDELBERG hit their targets on 10 Apr 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, we saw the Bulls on rampage, right at the opening of trading, and although the last 30 minutes of trade resemble a topping out pattern, the technicals still remain in favor of the Bulls. The Nifty opened with a positive gap up of 7 points at 6803 and then traded sluggishly within a confined range for the entire day, but all the time maintaining above the support zone (identified by us at 6740). However, the Bulls could make a high also below our identified resistance zone at 6840. The Nifty thus consolidated within a range of 6777 on the lower side and 6819 on the higher side. The Nifty closed flat at 6796. The last half hour of trade, where the Nifty lost all its daily gains, makes us wary of this uptrend getting halted. Also one need to watch out for a developing evening star pattern on the daily charts.
1) The Elder Ray readings : Bull Power reduces from +136 to +132 Bear Power also reduces from +36 to +90 indicating that the tug of war may have reached its decisive stage. For today, the Bulls need to overcome the levels of 6840 to maintain their upwards momentum whereas the Bears need to breach the levels of 6705 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 increased with the Nifty remaining flat, indicating added participation with both sided conviction. The MACD continues to float at the top with the histogram being minute just above the zero line. The ADX is suggesting a drop in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 6554.
5) Considering the above, our trading plan for the day is as under.
a) Around 6835 we will open fresh short positions with a SL of 6850 and a target of 6770. We will add to these short positions only below 6740.
b) Around 6755 we will open fresh long positions with a SL of 6740 and a target of 6820. We will add to these long positions only above 6850.
Happy Trading !!!
Buy calls on BEML ELECON & HEIDELBERG hit their targets on 10 Apr 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Sir, Can we go long at this level as plan a triggered
ReplyDeleteYes. One should go long here as per plan
DeleteBooked out with 30 points profit at 6785
ReplyDeleteBooked out 25 points profit at 6780
ReplyDelete