AD Code

Friday 25 April 2014

Nifty - 25 Apr 2014 - Bulls maintain their advantage

At the start of a fresh series, Bulls hold sway after closing nifty at yet another high.

As discussed on Wednesday, we saw "Expiry Jitters" on the Nifty with the Nifty making the intraday high and the intraday low within the first 4 minutes of trade and keeping traders guessing for the outcome till day end. The Nifty opened with a 8 point positive gap up at 6823 and made that quick high of 6862 at the blink of an eye and also that low of 6821 within the next 2 minutes of trading. The Nifty then dragged itself within these two levels for the entire trading session before closing at 6841 with high volumes identifiable to the series expiry. We could not trade as the Nifty kept whipsawing itself.

1) The Elder Ray readings : Bull Power rises from +98 to +108 Bear Power remains stagnant at +67 indicating that the Bulls still hold the advantage to themselves. For today, the Bulls need to overcome the levels of 6875 to maintain their upwards momentum whereas the Bears need to breach the levels of 6765 to regain their lost grounds.

2) The stochastics are well into the overbought zone now.

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 risen with the rise in the Nifty indicating that the rise may continue. The MACD continues to float at the top with the histogram also rising but still in the negative. The ADX is suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now at 6676.

5) Considering the above, our trading plan for the day is as under.

a) Around 6810 we will open fresh long positions with a SL of 6785 and a target of 6865. We will add to these long positions only above 6895.

b) Around 6870 we will open fresh short positions with a SL of 6895 and a target of 6815. We will add to these short positions only below 6785.

Happy Trading !!! 

Buy calls on ARIES MTEDUCARE & DEEPAKFERT hit their targets on 23 Apr 2014

Also visit Just Nifty and the Nifty Range blogs.


For cash market recommendations see our Daily Pre Market calls on NSE

No comments:

Post a Comment

Please add your comments here. Comments will be moderated.

Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.