Wednesday, September 22, 2010

Trade Plan - September 23, 2010

VWAP 5996 and volatility is 0.9.  Range bound trading today with a negative bias and VWAP is marginally down today from 6010 level of yesterday.  Break of 5970 on spot and 5983 in futures gave a good trade for short and later in the afternoon Nifty recovered smartly from 5970 (5983 NF) and touched a high of 6000 (6015 NF in futures) and a good long trade too was possible.

1) Now the 5-DEMA level comes into play as it has risen to 5940 level today. Break of 5940 is a trigger to go short for targets of 5920-5886 .
2) Nifty remaining above 5982  should take Nifty  up to 6011-6035. Strict stop loss for intra day can be 5966 for both longs and shorts tomorrow on closing basis.
3) A range bound trade could be between 5940-6030. A close above 6050 is bullish for more upside and close below 5920 is mildly bearish.

2 comments:

  1. in second point 5966 is Sl for both longs &shorts?

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  2. Yes Pasi, intra day trading is all about catching volatility and there is no baggage to carry overnight, so a single point needs to be arrived at. I feel 5966 is a decisive point for tomorrow. Thanx for your message.

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