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Monday 28 July 2014

Nifty - 28 Jul 2014 - Bulls hold advantage yet

Nifty gives away 40 points in a profit booking bout. Bulls still hold sway before expiry.

As discussed on Friday, the Nifty "Ventured into newer orbits", but could not sustain there as a profit booking bout emerged at 7840 levels. The Nifty opened flat at 7828 and after making a quick top at 7840, plunged downwards to 7749, breaching the two day low formed at 7753, only to recover a major part of the fall and close at 7790 with a loss of 40 points over its previous close. We took a trade on the long side and booked a loss of 25 points on that trade.

1) The Elder Ray readings : Bull Power reduces from +154 to +144 Bear Power rises from +90 to +52 indicating that the Bulls are stopping for breath, but the Bears are still far away from safety. For today, the Bulls need to overcome the levels of 7855 to maintain their upwards momentum whereas the Bears need to breach the levels of 7705 to regain their lost grounds.

2) The stochastics are well and deep into the overbought zone and are now pointing downwards.

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 fall in the Nifty indicating that the fall may continue for now. The MACD continues with its Buy signal with the histogram remaining positive but dipping. The ADX is suggesting a drop in the Bullish momentum, but still favors the Bulls. The Parabolic SAR continues with its Buy signal with the SL now brought up to 7528.

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

a) Around 7735 we will open fresh long positions with a SL of 7710 and a target of 7835. We will add to these long positions only above 7870.

b) Around 7850 we will open fresh short positions with a SL of 7870 and a target of 7745. We will add to these short positions only below 7710.

Happy Trading !!! 

Sell call on CAIRN hit its target on 25 Jul 2014

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2 comments:

  1. I Trade 4 Profit Daily28 July 2014 at 12:26

    Trading plan (a) has triggered and have opened fresh long position with SL of 7710

    ReplyDelete
  2. I Trade 4 Profit Daily28 July 2014 at 15:10

    Booked profit of 25 points @7761

    ReplyDelete

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