Thursday, October 7, 2010

Trade Plan - October 8, 2010

Nifty traded largely range bound between 6173-6190-6199 (6198-6224-6229 in futures) for whole of morning session and failed to break out above 6200 levels today ostensibly due to selling pressure at highs. Break of 5160 level @2:30 p.m. gave huge fall up to 6107 levels in no time.  VWAP @ close is 6184. Nifty closes in the red @ 6120.  The level of 6160 was a good reversal point today to initiate shorts intra day.

1) Tomorrow is the last day of this week's trade, and Nifty having conclusively broken 5-DEMA of 5134, it is a sell on rise up to 6145 with stop loss of 6160 on spot prices for target of 6075. 

2) Nifty could reverse from 6075 levels due to short covering and an opportunity to buy around these levels intra day can also be thought of with stop loss of 6060 on spot prices for a target of 6130-6160. The level of 6145 will be significant tomorrow if Nifty is able to sustain and close above it tomorrow.  There are some interesting scenarios to trade with tomorrow.
3) The Q2 result season will gain momentum from Monday onwards and this fall is likely a correction before the uptrend is likely to resume next week.  Happy trading!

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