Trade Plan - October 22, 2010

Once Nifty spot crossed 6045 reversal levels after a quiet 2+ hours of trading, there was no looking back and the upside rally took place primarily driven by short covering and Nifty has gone to cross 6060-6075-6095 levels with ease and touched a high of 6113. Once again the level of 5966 proved to be a good support as seen earlier this month.  VWAP @ close is 6094. Nifty closes at 6101.5

1) Now Nifty again looks bullish with a close above 6100 and just above the VWAP levels. The first hurdle for tomorrow will be crossing spot levels of 6135 once again. Buy zone will be again 6080-6135 levels only for target of 6180-6250. Strict stop loss for longs will be 6060 levels on closing basis.

2) The chart shows the fibo levels of break out from a bullish point of view on closing basis that took place above this year's previous high of 5400 high from September and if Nifty can cross the previous Jan 2008 high of 6357 level on closing basis, then some more upside up to 6700+ levels is possible to this great rally of 2010 within the next few months. However, before that a close above 6220-6250 should happen first. Today's closing is a step closer to the bullish view. Bearish view will be "until and unless a close above 6357 does not happen, it is short on rise and buy on dips"!  Happy trading!