Nifty - 29 Apr 2014 - Consolidation continues

Nifty gyrates within a 36 point range whole of yesterday, stays neutral consolidating.

As discussed yesterday, the Nifty did test the rising support levels, amidst a listless trading session. The Nifty opened with a negative gap down of 4 points at 6779 and then gyrated between the highs of 6786 and the lows of 6750 for the entire session. The Nifty however, closed weak at 6761 losing 22 points over its previous close.

1) The Elder Ray readings : Bull Power reduces from +112 to +28 Bear Power rises from +15 to -8 indicating that both the Bulls and the Bears are in their respective zones bringing neutrality on the Nifty at this point of time. For today, the Bulls need to overcome the levels of 6790 to maintain their upwards momentum whereas the Bears need to breach the levels of 6745 to maintain their downwards momentum.

2) The stochastics are in the neutral zone and are pointing downwards.

3) The Nifty has again closed below its 8EMA(6779) but has closed above its 13EMA(6759) and 21EMA(6712) also the Nifty has closed above all its key DMAs.

 

4) In the above chart, the volumes have dipped with the fall in the Nifty indicating that the fall may get arrested soon. The MACD continues with its Sell signal with the histogram too growing in the negative. The ADX is suggesting a perfect equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6702.

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

a) Around 6800 we will open fresh short positions with a SL of 6825 and a target of 6730. We will add to these short positions only below 6700.

b) Around 6725 we will open fresh long positions with a SL of 6700 and a target of 6795. We will add to these long positions only above 6825.

Happy Trading !!! 

Buy call on VADILALIND and Sell call on ASIANPAINT hit their targets on 28 Apr 2014

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