Trade Plan - June 01, 2011

Nifty moves as expected after the GDP numbers released kept market buoyant intra day today to touch 5571 spot high and close at 5560. VWAP @ close is 5523.

1) Now Nifty needs to go towards higher levels of 5610-5630-5665. Reversal will be below 5540 levels.
2) Below 5540 levels, 5500-5470 comes in to play.
3) The June series has begun on a positive note and Nifty has closed above the 5-EMA level for the fourth consecutive day. The monthly close for May 2011 is also good above the level of 5555. Happy trading! 

Trade Plan - May 31, 2011

Nifty begins the week with a range bound session after gap up opening and not able to go above 5510 and taking support around 5460 levels. VWAP @ close is 5467. Nifty closes flat at 5473.

1) Bullish range for tomorrow will be 5505-5525-5560. Reversal will be below 5485 level.
2) Below 5450, Nifty should see 5400 levels.
3) The second chart is the weekly chart which shows Nifty has risen from the 100-week EMA levels of 5320 on a longer time frame. Fall below 5300 can be drastic towards 4900 and below. Happy trading! 

Trade Plan - May 30, 2011

Nifty opens in the green and crosses 5445 levels comfortably and sustains above it to close at 5476. VWAP @ close is 5457.

1) Bullish range for Monday is 5490-5525-5555. No longs intra day if Nifty trades below 5475 with gap down opening.
2) Intra day fall below 5465, should send Nifty down in panic to 5445-5400-5370 levels.
3) The 5-EMA level has now risen to 5428. Happy weekend! Happy trading!

Trade Plan - May 27, 2011

Nifty closes above 5400 levels after a range bound session and an U turn after testing the support level of 5365 in the last half hour. VWAP @ close is 5385. Nifty closes at 5412.

1) Bullish range for tomorrow is 5425-5455-5480.
2) Reversal will be below 5365 levels only.
3) The 5-EMA level at close today is 5404. This level can be used as entry and exit point for tomorrow's intra day trade. Happy trading!

Trade Plan - May 26, 2011

Gap down opening and Nifty traded below 5365 levels throughout the day and took support at the trend line support level of 5330 and closes near these levels today. VWAP @ close is 5350. Nifty closes at 5349.

1) Below 5325, Nifty should fall now to 5300-5265 levels.
2) Reversal level will only be above 5365 for targets of 5400-5425.
3) The May series expires tomorrow and the session will see some wild swings intra day giving opportunities to trade between 5265-5325-5365-5425 levels. Happy trading! 

Trade Plan - May 25, 2011

Nifty takes U turn from 5365 spot levels in a range bound session to close flattish at 5395. VWAP @ close is 5393.

1) Two more sessions to go for May series expiry and volatility will test both sides of the week's high and low, i.e. 5455 and 5365. Nifty could surprise with a move towards 5450-5500 and reversal level for tomorrow will be 5405. This could happen with a gap up opening and sustaining above 5405.
2) Break of 5365 on spot levels, should take Nifty to 5300.
3) Nifty is trading below 5-EMA and technically weak, but short covering could change the picture of May expiry and Nifty could reverse when least expected.  Happy trading!

Trade Plan - May 24, 2011

Negative global cues and Nifty opens gap down and the down ward momentum continues to break last week low and close @5386. VWAP at close is 5400.

1) Now Nifty is in dangerous territory of breaking down swiftly if 5310 is not held.
2) Reversal level for tomorrow will be above 5445 only and closing above 5475.  Intra day support of 5365 is crucial tomorrow.
3) Nifty has traded below 5-EMA level again today and bias turns negative. The 5-EMA level at today's close is 5440. Happy trading!

Trade Plan - May 23, 2011

Nifty recovers today to touch high of 5517 on spot prices and closes at 5486 above the 5-EMA level. VWAP @ close is 5482. Nifty closes at 5486.

1) For Monday, the bullish range is 5520-5560-5590.
2) Reversal will be below 5475, for downside target of 5420-5380-5350.
3) The level of 5467 is the 5-EMA level and this level is the trigger for short selling.
4) The second chart shows the 52 weeks of Nifty journey from 4785-6338-5486 levels and the three important trend line support figures are 5350-5177-4785.  Nifty should trade range bound for a few more weeks between 5300-5600 in search of positive triggers for going up further above 5600. The fall will get accentuated only below 5300 levels.  Happy weekend! Happy trading!

Trade Plan - May 20, 2011

Nifty trades range bound today and holds yesterday's low of 5400 but fails to go above 5445 during the day after the gap up opening. VWAP @ close is 5423. Nifty closes at 5428.

1) The negative bias continues with the weakness in banking stocks following SBI results and index would remain range bound if 5400 support is held. Reversal intra day tomorrow will be above 5445 levels only for target of 5495-5525.
2) Below 5425 spot prices, Nifty could fall to 5380-5350 levels.
3) The 5-EMA level at close today is 5457 and Nifty trading above 5445 with crossover of 5457 towards 5500 levels is a probable trade tomorrow mainly due to short covering rally. Happy trading!

Trade Plan - May 19, 2011

The fall continues for Nifty but 5400 has managed to hold. VWAP @ close is 5427. Nifty closes at 5421

1) Close below 5435, could take Nifty down to 5390-5350 levels.
2) Reversal will only be above 5470 and closing above 5535.
3) The 5-EMA level is now 5471 at EOD today. Happy trading!

Trade Plan - May 18, 2011

The downside momentum gets impetus with poor results of SBI and Nifty closes near the lows of the day @ 5439. VWAP @ close is 5464.

1) The bias continues to be negative, firstly trading below 5-EMA technically and the poor results of index heavy weight SBI. Nifty below 5460, should test 5390-5340. Reversal will be only above 5490.
2) The 5-EMA level has now fallen to 5496 and Nifty can be expected to gain momentum tomorrow only above this level. Happy trading!

Trade Plan - May 17, 2011

Trading in negative zone throughout the day and the downward momentum of Friday continued throughout the day and Nifty closes below 5500 once again. VWAP @ close is 5505.

1) The weekly chart does suggest that Nifty is headed towards 5340 trading below 5555.
2) Global cues assume significance in light of the fact that there are no domestic events that can influence the market after the assembly election results and the results have turned out be balanced one for the market.
3) The 5-EMA has now fallen to 5525 and this level will be intra day reversal level tomorrow once again. Happy trading!

Trade Plan - May 16, 2011

Nifty closes the week just above the 5-EMA at 5544 after finding support around 5470 levels and going past intra day reversal point of 5525. VWAP @ close is 5563.

1) Nifty made high of 5605 and intra day profit booking on weekend might have led to the last hour fall towards the 5-EMA level. The 5-EMA level at close today is 5538. The bullish range for Monday is 5580-5630 levels.
2) If the Friday's last hour falling momentum continues unabated, then below 5525, the fall of Nifty could be fast towards 5450-5400.
3) Nifty must sustain above 5580 levels for initiating intra day longs on the first day of the penultimate week before May series expiry.  5600 CE and 5500 PE will come into play intra day depending on the direction of the market on Monday. With the closing above 5-EMA, the bias is interpreted as up above 5580 only. Happy weekend! Happy trading!

Trade Plan - May 13, 2011

Nifty opens gap down below 5-EMA and trades below 5560 for most part of the day before cracking after 1 pm to fall  to 5476 and close @ 5486. VWAP @ close is 5518.

1) With break of 5510, Nifty is headed lower towards 5440-5340 levels.
2) Reversal will now be only above 5565 levels.
3) Intra day reversal can happen above 5525 with short covering rally if the level of 5450 is held on downside. Happy trading!

Trade Plan - May 12, 2011

Nifty closes above the 5-EMA level today after nearly 10 sessions. VWAP @ close is 5562. Nifty closes at 5565.

1) The 5-EMA at EOD today is 5560 and now Nifty needs to sustain above this weeks high of 5592 levels for target of 5610-5650. Sustaining above 5590 will take Nifty towards these levels. The ultimate target for this up move could be up to 5755 as shown in the chart.
2) Failure to hold the recent low of 5515 should take Nifty down to 5450-5400. A short-term bearish scenario would be Nifty falling towards 5340 levels in the event of recent lows getting breached.
3) Having closed above the 5-EMA, the short term bias is up for targets of 5650-5755 in the next few sessions. Happy trading! 

Trade Plan - May 11, 2011

Nifty trades flat after trading above the 5-DEMA level of 5566 in the morning session. Nifty closes flat at 5541. VWAP @ close is 5562.

1) Bullish range for tomorrow is now 5565-5610-5635.
2) Nifty remains weak below the 5-EMA level on closing basis and below 5540, could fall to 5480-5450.
3) The 5-EMA level is now 5557. Happy trading!

Trade Plan - May 10, 2011

Nifty finds support @ 5500 after gap up opening and spent most of the day in a flattish range of 5540-5565 and failing to close above 5-EMA level. Nifty closes flat at 5551. VWAP @ close is 5549.

1) The 5-EMA is now 5565 and 5540 will be reversal level for long positions above 5565 for target of 5610-5640.
2) Below 5540, Nifty can gain down side momentum to test 5500-5450 levels.
3) The market is extremely volatile and traders are cautious with out any clear cut bias of this market.  Happy trading!

Trade Plan - May 9, 2011

Short covering rally from 5475 levels leads Nifty to close in the green today @ 5551 after being range bound throughout the day. VWAP @ close is 5524.

1) The 5-EMA at close today has fallen to 5573. The bullish range for Monday will be 5575-5620-5660. Strict stop loss of 5530 on spot prices.
2) Below 5530, Nifty is likely to see 5420-5390-5350. Happy weekend.  Happy trading!

Trade Plan - May 6, 2011

Nifty is back to the levels it was 30 sessions back once it traded below the all important support level of 5555. VWAP at close is 5496. Nifty closes at 5459.

1) This is the 7th consecutive session closing below 5-EMA level and also the crucial support level of 5555, Nifty looks set to correct further if it does not close above 5610 in the next two to three trading sessions.
2) Below today's low of 5443, Nifty could test 5390-5350.
3) Nifty is trading below all EMAs/SMAs and technical levels need to catch up with the Nifty levels over the next couple of sessions. Happy trading!  

Trade Plan- May 5, 2011

The down trend continued for Nifty today to close for the sixth consecutive session below 5-EMA to close at 5537. VWAP @ close is 5543.

1) Nifty is very weak with a close below 5555 and should now test lower levels of 5480-5430 and the trading range for tomorrow could be 5580-5430.
2) If Nifty reverses into bullish mode, then reversal will be above 5595 on spot prices for a bullish trading range of 5595-5645-5690.
3) The 5-EMA at close today has fallen to 5646. Some short covering rally can be expected above 5595 tomorrow.  Happy trading!

Trade Plan - May 4, 2011

Nifty remains below today's reversal level of 5725 and tests new low of 5555. VWAP @ close is 5641. Nifty closes @ 5565.

1) Now trend is down especially with Bank Nifty falling after the market has not welcomed the RBI monetary policy today. Below 5555, 5520-5480 are next support levels.
2) Some value buying might emerge at the level of 5480-5520 if further down side is there or above 5610 with short covering rally Nifty could recover up to 5650 levels.
3) The 5-EMA level at today's close is 5700. Happy trading!

Trade Plan - May 3, 2011

Nifty keeps falling breaking below 5700 after initial trades above 5765 fails to sustain. Now VWAP @ close is 5735. Nifty closes at 5701 today.

1) The trailing stop loss for shorts is 5735 positionally and Nifty should reverse tomorrow from 5725 levels if able to trade above these levels tomorrow morning. Above 5725 of spot prices (5745 approx in futures), Nifty can test 5775-5800.
2) Below 5680 support, Nifty could go down to test support levels of 5640-5600 intra day.
3) The 5-EMA at EOD today has fallen to 5768. Happy trading!