Monday, September 13, 2010

Trade Plan - September 14, 2010

VWAP is 5728 and volatility is  0.90.  A big breakout today crossing the two levels of 5655 and 5705 @ the opening bell itself. For intra day the opening range breakout played very well today till the close zooming from 5711 to 5777 high in futures.

1) After this breakout, Nifty likely to consolidate in the range of 5705-5800 levels. For intra day trading, the best strategy now is to try for the next breakout above 5780 levels for a target of 5815-5840. Stop loss in this scenario for intra day will be 5755.
2) If Nifty corrects in the next trading session, then 5715 to 5735 levels is a buy zone with strict stop loss of 5695.
3) With this upside breakout, shorting opportunity is not possible until there is a decisive close of Nifty below 5650 level hereafter. The  5-DEMA has risen to around 5645 now, so ideally a close below 5640 only presents with a shorting opportunity.
4) With volatility rising, trading with caution is absolutely necessary and considering deeper stop losses might be necessary.

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