Thursday, September 23, 2010

Trade Plan - September 24, 2010

VWAP is 5971 and volatility is 0.88.  Today during first half of session Nifty took support at 5955 levels and trade mostly above 5966 and gave a good long trade up to 5993 levels but failed to sustain above it.  Subsequently, later mid afternoon Nifty cracked below 5966 and touched 5932 on spot giving a good shorting opportunity and closed at 5959.

1) Tomorrow's opening will be crucial. A gap up opening and 5977 level is the level to watch on spot. Being above 5977 levels Nifty could make an attempt to recover above 6000-6040. In this scenario, Nifty could close above 6050 still and bias can turn positive for next week.  Strict stop loss remains 5966 on spot level tomorrow.
2) Failure to sustain above 5977 and move above 5990 level should take Nifty down to newer low and 5916 is a crucial level to watch. In such a scenario short covering around these levels will take Nifty above 5-DEMA which is now 5948.  So some interesting scenarios to trade Nifty is there tomorrow.  Since today's close is below 5966, the level to watch is 5924-5916.  Obviously consolidation is happening and a good move next week before the September series expires looks possible still.  Happy trading!

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