Thursday, December 9, 2010

Trade Plan - December 10, 2010



Nifty breaks support levels of 5860 levels and touches a low of 5742.  VWAP @ close is 5848.  Nifty closes @ 5766.

1) It is short on rise up to 5875 levels only with reversal only above yesterday's break down level of 5965 on a closing basis. Tomorrow being the weekend, a short covering rally can be expected and could take up this market by 50 odd points from 5820-5870-5900 levels tomorrow.
2) The market sentiment has turned bearish with more and more negative news and at the moment the technical levels have taken a beating.  Shorting at these levels of below 5750 is also risky proposition and it is better to play the ORB breakout for intra day trading and going with the trend.  The market is now driven by negative sentiments and it will take a few sessions for the negatives to be factored in and the sentiments to subside.
3) Over a few sessions or next week, market should cool off and find a steady bottom around 5630-5555-5400 level if it tanks any further from today's low of 5742 or else it should retrace back and close above 5965 levels.  Happy trading!

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