Thursday, November 18, 2010

Trade Plan - November 19, 2010








Nifty as expected was sell on rise after opening bell and fell below the strong support of 5937 levels to 5907 level and dramatically  recovered to go past 6000 levels after the fall. 6035 of spot levels are high resistance zones and Nifty barely managed to stay above 6018 levels even after recovering from the lows.  VWAP @ close is 6004.  Nifty closes just below VWAP levels @ 5999.

1) Gap up opening and sustaining above 6035 spot levels, then upside possible only above 6085 levels tomorrow for target of 6135+ with stop loss of 5966.
2) Having broken the support of 5937 levels, Nifty will be very volatile and downside targets will be 5860-5835 levels.
3) All rallies from lows of day are short covering rallies and can be traded quite fruitfully.  The level of 6085 is strict stop loss for sell on rise and buy on dips intra day levels and the level of 6035 is a good entry point for taking long positions intra day if Nifty sustains around this level.  Happy trading!

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