Nifty - 24 Jul 2014 - Bulls keep Nifty buoyant

Nifty makes a new all time high and gives a all time high close. Bulls in full control.

As discussed in our yesterday's post, "Bulls promise all time high", we got not only a new high, but a new all time highest close also. Albeit this happened after a fair amount of profit booking. The Nifty opened with a positive gap up of 27 points at 7795 and after a preliminary dip of about 20 points, crossed the opening mark and made a new all time high at 7809, within the first hour of trade. From there, the profit booking started, which took the Nifty to 7780, then to 7765 and then to 7753. Buyers came in at that point and the Nifty saw a sharp recovery in the last hour of trade to close at a all time high of 7796 with a gain of 28 points over its previous close. None of our trading plans triggered yesterday.

1) The Elder Ray readings : Bull Power rises from +141 to +153 Bear Power reduces from +72 to +96 indicating that the Bulls are in full control as of now. For today, the Bulls need to overcome the levels of 7830 to maintain their upwards momentum whereas the Bears need to breach the levels of 7675 to regain their lost grounds.

2) The stochastics are now almost in the overbought zone, but are indicating some more room on the upside.

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 triggered a Buy signal with the histogram remaining in the positive and growing. The ADX is showing a rise in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 7464.

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

a) Around 7770 we will open fresh long positions with a SL of 7745 and a target of 7855. We will add to these long positions only above 7880.

b) Around 7860 we will open fresh short positions with a SL of 7880 and a target of 7780. We will add to these short positions only below 7745.

Happy Trading !!! 

Buy call on HINDALCO hit its target on 23 Jul 2014

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