Trade Plan - March 25, 2011

A day of consolidation at 5500+ levels today and with marginal increase in volumes today, trading remained range bound between 5500-5528 levels.  VWAP @ close is 5532. Nifty closes at 5522.

1) Gap up opening and sustaining above 5520 should take Nifty above 5565 levels where some resistance could be seen on the weekend tomorrow being the penultimate week to expiry. If the longs are strong and add more volumes, then a good rally can take beyond 5600 levels.
2) Gap down opening will offer buying opportunity only if level of 5500 is not broken.
3) The bias is up. The 5-EMA level is now risen to 5465 and going short should be only below 5465. Happy trading!

Trade Plan - March 24, 2011

A good opening just below 5-EMA but sustained buying in early morning trades helps Nifty to remain above 5-EMA level and close @ 5480. VWAP @ close is 5478.

1) A steady trading day without hiccups above 5-EMA/5-SMA levels to get back into the zone of 5465-5480.
2) Tomorrow, this positive momentum will continue only if Nifty moves to trade above 5500 on spot prices and with more buying should cross 5565-5620 in a few sessions. Stop loss or reversal level will be 5465 for intra day players.
3) Below, 5465, the levels of 5400-5365 will again be tested for buying support.
4) The 5-EMA level at close is 5437 and Nifty has closed well above this level today. Happy trading!

Trade Plan - March 23, 2011

Another range bound day with positive bias and trading above 5400 on spot levels for most of afternoon session but failing to conclusively cross 5-EMA level of 5417. However, Nifty closes just below 5-EMA level after a small rally towards end of the day  from 5404 to 5418 levels. VWAP @ close is 5425. Nifty closes @ 5414 just below the 5-EMA level of 5416.

1) Tomorrow, Nifty should sustain above 5425 levels with a close above 5480 for momentum of positive nature.
2) Volumes are too low and hence most of the momentum fizzles out when intra day players book out either side of the 5-EMA with small scalping trades.
3) Below 5400, the targets can be 5330-5280. The global cues are stabilizing now.  Happy trading!

Trade Plan - March 22, 2011

A range bound session with positive and negative bias throughout the day. VWAP @ close is 5395. Nifty closes flat @ 5365.

1) The support of 5365 is very crucial now and with negative global cues, break of this level should bring in more short selling into the system and with it volatility.
2) Level to watch tomorrow is 5415+ on spot prices for upside. Stop loss will be 5385.
3) Below 5365, Nifty could tank to 5280-5230 levels. Today, Nifty has closed @ 5365 levels just at the break down levels. Tomorrow's session could be highly volatile with market makers trying to defend the level of 5365 from the claws of the short sellers. The global cues must be good enough for the market makers to step in and buy into this market.  The 5-EMA @ close is 5417 and the 5-SMA is 5429. Happy trading! 

Trade Plan - March 21, 2011

Nifty breaks 5-EMA level and followed by negative news about index heavy weight RIL,  Nifty cracked below 5400 and closes @ support level of 5373.  VWAP @ close is 5416.

1) For Monday, the bias is negative and Nifty below 5365 should find support at 5300 or 5230 level over the next couple of trading sessions.
2) Bullish sentiment should return only if Nifty manages to close above the 5-EMA/5-SMA level of 5443/5463. Happy weekend. Happy trading!

Trade Plan - March 18, 2011

Another range bound day on either side of the 5-EMA level of 5492 with a negative bias after gap down opening. VWAP @ close is 5487 and Nifty closes at 5446.65

1) Views remain same, range bound trading between 5480-5520-5530 levels for going long.
2) Below 5480 levels of 5450-5430 is tested and Nifty bounces back to 5465-5475 levels.
3) The 5-EMA @ close has come down to 5477. Happy trading!

Trade Plan - March 17, 2011

Nifty opens gap up above 5-EMA level and remains throughout morning session to remain above this level to touch a high of 5535 on spot prices. VWAP @ close is 5524. Nifty closes at 5511.

1) Volumes are not encouraging enough for bigger moves and hence Nifty stuck in a range either side of the 5-EMA levels without clear cut direction with weak global cues.
2) Broadly, the bullish range is 5480-5560 levels. Nifty needs to close above 5600 levels for further up side.
3) Below 5465, Nifty is bearish for 5400-5365. The 5-EMA level at close today is now up to 5492.  Happy trading!