On expiry day, overbought Nifty stays bullish, appearing to aim at 6900 if not more.
As discussed yesterday, we saw "Bulls cling onto their advantage", and not let the Nifty slip below 6805 (our identified support zone) while swaying wildly within a confined range of just 32 points. The Nifty opened with a positive gap up of 5 points at 6823 and made a high of 6838 and a low of 6806 before closing at 6815, keeping the inclination towards the Bulls. We did not participate in the trade as none of our trading plans triggered.
1) The Elder Ray readings : Bull Power stagnates at +98 Bear Power reduces from +60 to +67 indicating that the Bulls have maintained their advantage and that the Bears have lost further grounds. For today the Bulls need to overcome the levels of 6850 to maintain their upwards momentum whereas the Bears need to breach the levels of 6755 to regain their lost grounds.
2) The stochastics are back into 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 remained stagnant with the Nifty also remaining stagnant, indicating lack of decisive participation. The MACD remains floating on the top with the histogram too stagnating below the zero line. The ADX continues to favor the Bulls. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 6669.
5) Considering the above, our trading plan for the day is as under.
a) Around 6785 we will open fresh long positions with a SL of 6755 and a target of 6850. We will add to these long positions only above 6875.
b) Around 6855 we will open fresh short positions with a SL of 6875 and a target of 6790. We will add to these short positions only below 6755.
Happy Trading !!!
Buy calls on TREEHOUSE PANACEABIO & TECHNO hit their targets on 22 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 "Bulls cling onto their advantage", and not let the Nifty slip below 6805 (our identified support zone) while swaying wildly within a confined range of just 32 points. The Nifty opened with a positive gap up of 5 points at 6823 and made a high of 6838 and a low of 6806 before closing at 6815, keeping the inclination towards the Bulls. We did not participate in the trade as none of our trading plans triggered.
1) The Elder Ray readings : Bull Power stagnates at +98 Bear Power reduces from +60 to +67 indicating that the Bulls have maintained their advantage and that the Bears have lost further grounds. For today the Bulls need to overcome the levels of 6850 to maintain their upwards momentum whereas the Bears need to breach the levels of 6755 to regain their lost grounds.
2) The stochastics are back into 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 remained stagnant with the Nifty also remaining stagnant, indicating lack of decisive participation. The MACD remains floating on the top with the histogram too stagnating below the zero line. The ADX continues to favor the Bulls. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 6669.
5) Considering the above, our trading plan for the day is as under.
a) Around 6785 we will open fresh long positions with a SL of 6755 and a target of 6850. We will add to these long positions only above 6875.
b) Around 6855 we will open fresh short positions with a SL of 6875 and a target of 6790. We will add to these short positions only below 6755.
Happy Trading !!!
Buy calls on TREEHOUSE PANACEABIO & TECHNO hit their targets on 22 Apr 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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