A range bound day within the range of yesterday's low (6144) and well below yesterday's high on spot levels. 6155 was a good entry point twice for long trades intra day today. VWAP @ close is 6196.60 and marginally down from yesterday's VWAP of 6206. Nifty has closed marginally down from yesterday's close @ 6145.80 around today's support level.
1) Views of levels remain largely unchanged from yesterday's plan as the levels of 6160-6180 worked well today and Nifty is in consolidation phase with 6140 being a good support level.
2) For tomorrow, 6133 should be strict stop loss for longs and 6160-6170-6180 is a good level to initiate longs for target of 6220-6250-6275 on spot value, i.e., bullish range is 6160-6170-6190-6220-6250+
3) Break of 6133 on spot level could trigger an intra day dip to initiate short position on rise only with stop loss of 6165 for target of 6100-6070, i.e., bearish range is 6145-6135-6100-6075.
4) Important point to be noted is today's opening spot level low on the trading screen @ 6118 was never tested and this level needs to be watched tomorrow as a turning point for downside if any. Overall, Nifty is very bullish as reflected by the unusually high premium in futures prices and it is certainly a buy on dips situation for intra day. If a weekly close above 6357 happens, then Nifty would have retraced the entire fall of 2008 and a new trading zone will get established over the coming months. The chart of Nifty for the period 2008-till date looks poised to conquer that level of 6357 sooner than later, but let the "trade be with what we see and not what we foresee". Of note the index laggards, RIL, RCom, Reliance Infra, Reliance Capital are all rising in tandem now. As we all know, no breakout above previous high is possible without the Reliance pack. Buying 6300CE or 6400 CE is also a good idea for intra day trade only. Happy trading!
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