Nifty holds 6650 and bounces back closing near highs. Volatile sessions ahead.
On Thursday, we were expecting "Downturn to continue" and maybe breach the 21EMA. However, the Nifty opened with a positive gap up of 20 points at 6695 and made a quick low of 6684 and recovered from thereon. The Nifty traded mostly in the zone of 6710 6735 for most of the trading session. In the late afternoon though the Nifty soared to new intraday highs and closed at 6779 after making a high of 6783. We booked a loss of 20 points in a trade taken on the short side.
1) The Elder Ray readings : Bull Power rises from +48 to +71 Bear Power reduces from -35 to -27 indicating that both the Bulls are the Bears are in equilibrium at this point of time. For today, the Bulls need to overcome the levels of 6795 to maintain their upwards momentum whereas the Bears need to breach the levels of 6690 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing against each other.
3) The Nifty has again closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the rise may continue but meet resistance at higher levels. The MACD continues to point down with the histogram also remaining in the negative. The ADX is suggesting a equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Sell signal with the SL shifted down to 6816.
5) Considering the above, our trading plan for the day is as under.
a) Around 6810 we will open fresh short positions with a SL of 6835 and a target of 6725. We will add to these short positions only below 6700.
b) Around 6720 we will open fresh long positions with a SL of 6700 and a target of 6805. We will add to these long positions only above 6835.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
On Thursday, we were expecting "Downturn to continue" and maybe breach the 21EMA. However, the Nifty opened with a positive gap up of 20 points at 6695 and made a quick low of 6684 and recovered from thereon. The Nifty traded mostly in the zone of 6710 6735 for most of the trading session. In the late afternoon though the Nifty soared to new intraday highs and closed at 6779 after making a high of 6783. We booked a loss of 20 points in a trade taken on the short side.
1) The Elder Ray readings : Bull Power rises from +48 to +71 Bear Power reduces from -35 to -27 indicating that both the Bulls are the Bears are in equilibrium at this point of time. For today, the Bulls need to overcome the levels of 6795 to maintain their upwards momentum whereas the Bears need to breach the levels of 6690 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing against each other.
3) The Nifty has again closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have remained stagnant with the rise in the Nifty indicating that the rise may continue but meet resistance at higher levels. The MACD continues to point down with the histogram also remaining in the negative. The ADX is suggesting a equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Sell signal with the SL shifted down to 6816.
5) Considering the above, our trading plan for the day is as under.
a) Around 6810 we will open fresh short positions with a SL of 6835 and a target of 6725. We will add to these short positions only below 6700.
b) Around 6720 we will open fresh long positions with a SL of 6700 and a target of 6805. We will add to these long positions only above 6835.
Happy Trading !!!
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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