Trade Plan - October 18, 2010

Nifty ended the week in the red at the crucial 6060 level after making a high of 6284 and with increased volatility Nifty enters the penultimate week of October series with a slightly negative bias. VWAP closes at 6140 for the week after touching a high of 6248 two days earlier.

1) Spot levels to watch intra day is 6085-6135 (6115-6162 level in futures)  for upside target of 6175 (Friday opening) and 6200 level (Friday High) for a close above 6250 level.
2) Break of 6050 (Friday low) should set Nifty for a target towards the 34-DEMA or 34-SMA levels of 5930/5900 levels.
3) The pre-market session of 15 minutes will be interesting and might give some idea of how the trade is going to pan out for the day. First important level is 6085 and the next important level is 6135 (above 5-DEMA levels). Volatility is going high and strict stop loss of 6075 for longs on spot levels (6100 in futures approx).
4) Nifty could stabilize around 34-DEMA/34-SMA levels of 5930-5900 after about 100 sessions of uptrend from the May 25th low of 4786. Happy trading!