Trade Plan - October 21, 2010

Today's trading very similar to yesterday's and Nifty tanked after 3 pm to below 6000 levels to test 5966 levels and nearing the 34-DEMA levels of 5950-5900 which could provide some support. The level of 5965 was a strong support earlier last month. VWAP @ close is 6039. Nifty closes @ 5982.

1) Bias is negative and it is short on rise market now. Strict stop loss or reversal point for Nifty will be 6045 on spot levels tomorrow.
2) If Nifty takes support around the levels of 5940-5950, then a long could be initiated for target of 6045-6090. The chart shows the importance of 5940+ levels (38.2% fibo retracement level on closing basis) apart from being 34-DEMA level too.
3) Nifty will again become bullish only with a close above 6100 levels. The last few trading sessions of the October series will be volatile and range bound. Happy trading!