Sunday, September 19, 2010

Trade Plan - September 20, 2010

VWAP is 5894.95 and volatility is 0.89.  Nifty closed with hefty premium on Friday and made a low of 5860 and traded mostly within 5870-5895 range, neither breaking previous high of 5901.65 nor breaking the all important 5823 level and Friday was a good day for both short and long positions intra day between 5880-5910 range in futures.

1) The run up over the past two weeks has been from 5348.90 to 5901.65, a gain of 550+ points. Using Fibonacci calculations now, upside breakout level comes @ 5932+ for target of 6050-6250+ and downside levels 5820-5560 levels. So, 5870 level assumes great significance now for the coming week with 5932 as breakout point. Strict stop loss for long positions  is 5854 and taking long positions above 5870 only or breakout of 5902 on spot prices.
2) Short positions below break of 5839 levels only with strict stop loss of 5870 on closing basis.

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