Nifty opens gap up and retains the gap in a choppy session. Bullish volatility on.
2) Both the stochastics have now reached the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
Buy calls on PRAKASH TITAN SIMPLEXINF BEL ADANIPORTS BGRENERGY hit their targets on 13 May 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, the Bulls followed up on their buying spree which has started since Friday. The Nifty opened with a positive gap up of a whopping 66 points at 7080 and maintained that gap throughout the trading session. The Nifty made a high of 7172 and a low of 7067 before closing at 7109 in a highly volatile session which saw a drop of more than 120 points in the Nifty at one point of time in a highly upwardly trending market. We took a trade on the long side and could book out with a profit of 80 points.
1) The Elder Ray readings : Bull Power rises from +248 to +352 Bear Power reduces from +91 to +247 indicating the strong grip of the Bulls on the Nifty. For today, the Bulls need to overcome the levels of 7220 to maintain their upwards momentum whereas the Bears need to breach the levels of 6860 to regain their lost grounds.
2) Both the stochastics have now reached 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 increased with the rise in the Nifty indicating that the rise may continue. The MACD has now turned upwards with the histogram too growing in the positive. The ADX is suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6667 from 6646.
5) Considering the above, our trading plan for the day is as under.
a) Around 7055 we will open fresh long positions with a SL of 7030 and a target of 7140. We will add to these long positions only above 7180.
b) Around 7155 we will open fresh short positions with a SL of 7180 and a target of 7065. We will add to these short positions only below 7030.
Happy Trading !!!
Buy calls on PRAKASH TITAN SIMPLEXINF BEL ADANIPORTS BGRENERGY hit their targets on 13 May 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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