Nifty - 23 Jul 2014 - Bulls promise all time high

Nifty comes within reach of all time highs. Bullish expiry on the cards as of now.

As discussed yesterday, the "Bulls held on" and with great follow through, which was lacking day before yesterday. The Nifty opened with a 24 point positive gap up at 7708 and after making a quick low of 7705, surged towards 7750 (our identified resistance zone). From there, the Nifty retreated a bit, but always held on to the lows of the day, and recovered, and crossed the resistance zone of 7750 7770, before making a high of 7774 and closing at 7768 with a gain of 84 points over its previous close. We took a trade on the short side and could book out with a profit of 30 points on that trade.

1) The Elder Ray readings : Bull Power rises from +111 to +141 Bear Power reduces from +63 to +72 indicating that the Bulls are in the drivers seat as of now. For today, the Bulls need to overcome the levels of 7800 to maintain their upwards momentum whereas the Bears need to breach the levels of 7655 to regain their lost grounds.

2) The stochastics are now approaching the overbought zone, indicating some more room 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 increased with the rise in the Nifty indicating that the up move may continue. The MACD is about to confirm a Buy signal with the histogram too coming in the positive. The ADX is also suggesting a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 7442.

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

a) Around 7730 we will open fresh long positions with a SL of 7705 and a target of 7820. We will add to these long positions only above 7855.

b) Around 7830 we will open fresh short positions with a SL of 7855 and a target of 7740. We will add to these short positions only below 7705.

Happy Trading !!! 

Buy calls on AHLUCONT HITACHIHOM MTEDUCARE TIMKEN & KABRAEXTRU hit their targets on 22 Jul 2014

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