Wednesday, October 6, 2010

Trade Plan - October 7, 2010

Another day of consolidation and Nifty traded in the range of 6223-6162 levels and never tested the opening recorded low of 6148. Good support at 6160 level in the past three days. VWAP @ close is 6216. The  intra day trades today was largely between 6168-6194 levels (6188-6225 in futures) after the gap up opening @6198-6223 levels .

1) Nifty needs to break and trade above 6200, but also close above 6250 level for higher targets and today's close @ 6186.45 above the support level of 6160 is the first indication of this scenario. The bullish range for tomorrow is 6195-6220-6250-6290 on spot prices.  Stop loss will be 6160 on spot prices.
2) First sell signal will get triggered only below 6160 and second signal below 6145 and it will be short on rise with a close below 6120. Stop loss for shorts will be 6180. The level of 6160 will be important over the next two days of trade this week.
3) The bias remains positive and a weekly close above 6250 will indicate all time highs in the coming weeks for Nifty.  Happy trading!

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