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Wednesday 2 July 2014

Nifty - 02 Jul 2014 - Ready for newer skies

Bulls seem to have prepared their launchpad to move the Nifty to unchartered zones.

As discussed yesterday, the "Bulls promised upward thrust" on the Nifty as they managed to thwart any Bearish attempts and kept the Nifty afloat throughout the trading session. The Nifty opened with a positive gap up of 18 points at 7629, made low of 7618, a high of 7649 before closing at 7635 with a gain of 23 points over its previous close. We did not take any trade on this narrow ranged day, when none of our trading plans triggered.

1) The Elder Ray readings : Bull Power rises from +86 to +98 Bear Power reduces from -6 to +67 indicating that on this consolidating day, the Bulls have now dislodged the Bears. For today, the Bulls need to overcome the levels of 7665 to maintain their upwards momentum whereas the Bears need to breach the levels of 7565 to regain their lost grounds.

2) The stochastics have now turned upwards with a huge space for an up move.

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 decreased with the rise in the Nifty indicating that the rise may find resistance going ahead. The MACD is attempting to indicate a upcoming up move, with the histogram rising in the negative. The ADX is showing a overshoot of the Bullish momentum with the overall momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 7500.

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

a) Above 7650 we will open fresh long positions with a SL of 7625 and a target of 7740. We will add to these long positions only above 7770.

b) Around 7750 we will open fresh short positions with a SL of 7770 and a target of 7660. We will add to these short positions only below 7625.

Happy Trading !!! 

Buy calls on PFOCUS PURVA KEI & UNIENTER hit their targets on 01 July 2014

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1 comment:

  1. I Trade 4 Profit Daily2 July 2014 at 15:03

    Trading plan(a) target achieved. Booked 50 points for longs opened at 7680 in the morning.

    ReplyDelete

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