A gap up opening and throughout the day Nifty just ended up filling that gap trading in the range of 6110-6135 and never traded above 6135 (6164 in futures) level convincingly. VWAP @ close is 6160.57. Nifty closes @ 6135.85. It was a good day for scalping between 6115-6135 today, both ways after the initial gap up levels cooled off and in the last 20 minutes Nifty did manage to cross 6135 today and may be fill up and retrace back to today's high (6187 of spot) tomorrow morning with a gap up and continue its upward momentum from thereon.
1) The level of 6135 remains the level for higher levels this week and 6135 (6165 in futures approx) will be a good entry point either tomorrow or day after once Nifty consolidates convincingly at this level. A close above 6200 is the next criteria for the uptrend to continue. Stop loss will be 6105 (below today's opening and low price of 6105.95).
2) Downside can be below 6125 level close for targets of 6090-6050-5990 levels. Stop loss for shorts will be 6155 level of spot (6185 approx in futures) on spot levels. Levels to watch tomorrow 6155 and above for upside breakout and 6125 and below for breakdown.
3) With weekend holidays for the Navratri festival, trading is likely to be sideways & dull this week between 6060-6200, and may be the breakouts and breakdowns are left for later this month before the October series expires and after this weekend. Good time to take a break and have a re-look at trading the market afresh. The bias seems still up, however. I will be back with my trade plan only from next Monday (October 18, 2010) onwards. Till then, Happy Navratri! Happy trading!
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