AD Code

Wednesday 7 May 2014

Nifty - 07 May 2014 - Listless grinding on

Nifty continues with its directionless rangebound movements as averages catch up.

As discussed yesterday, Rangebound gyrations continued on the Nifty. Nifty remained in a corrective mode with the major trend remaining upwards. The Nifty opened with a positive gap up of 20 points at 6719 and moved within a range of 24 points above the opening mark (6743) and 17 points below the opening mark (6702) before closing at 6715. The noteworthy point was that the Nifty traded in the green for the entire day. We took a trade on the short side and booked out with a profit of 20 points on that trade.

1) The Elder Ray readings : Bull Power rises from +9 to +14 Bear Power reduces from -51 to -28 indicating that the Nifty is now in a equilibrium. For today, the Bulls need to overcome the levels of 6745 to maintain their upwards momentum whereas the Bears need to breach the levels of 6700 to maintain their downwards momentum.

2) The stochastics are still near the top of the oversold zone.

3) The Nifty has closed below its 8EMA and 13EMA but is above its 21EMA and also above all its key DMAs.




4) In the above chart, the volumes have decreased with the Nifty being flat indicating that there is lack of participation. The MACD continues to move downwards, but the histogram though in the negative is showing signs of bottoming out. The ADX is also suggesting loss of momentum for the Bears. The Parabolic SAR continues with its Sell signal with the SL being brought down to 6857 now.

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

a) Around 6755 we will open fresh short positions with a SL of 6775 and a target of 6695. We will add to these short positions only below 6655.

b) Around 6675 we will open fresh long positions with a SL of 6655 and a target of 6740. We will add to these long positions only above 6775. 

Happy Trading !!! 


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2 comments:

  1. I Trade 4 Profit Daily7 May 2014 at 12:16

    Trading plan (b) has triggered and have opened fresh intraday long positions at 6675 with SL of 6655

    ReplyDelete
  2. I Trade 4 Profit Daily7 May 2014 at 15:05

    SL hit at 6655 exited with 20 pts loss

    ReplyDelete

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