Sunday, September 5, 2010

Trade Plan - September 06, 2010

VWAP closing is 5484.95 down from 5493 of yesterday. Volatility is 0.70.

1. Nifty has held 5470 levels well over the past two days.
2. VWAP has come down marginally by 9 points from 5493 levels, but Nifty closed in premium after trading in discount for almost the entire day.
3. A minor dip could be expected on Monday September 6, 2010 to 5458 levels.
4. Buy zone is 5458-5493 levels for a target of 5535-5570.
5. If gap up opening go long above 5505-5515 only. (Strict stop loss will be 5493) in this scenario on closing basis.
6. If gap down opening, go long only above 5458 with a strict stop loss of 5440 (risk to reward is best in this scenario) for a target of 5495-5520 .
7. 5447 is  short term support, so short positions intraday only below 5440 level.

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