Wednesday, February 9, 2011

Trade Plan - February 10, 2011


Nifty falling as expected and no support is held for more than an hour intra day. After recovering from the gap down opening and support at 5255 levels Nifty tanked below 5320 levels once again to test 5225 levels. VWAP @ close is 5295. Nifty closes at 5254.

1) Trailing stop loss intra day for positional short position will now come down to 5325 tomorrow. Intra day reversal levels should be around 5210 levels with a gap down opening tomorrow as short covering rallies intra day have taken place today between 5255-5320 and later from 5230-5280 towards EOD today and the zone of 5220-5260 some support is seen.
2) The next critical support levels will be 5165-5090 levels on downside.
3) More panic on cards if 5160 levels are broken. The chart shows levels Nifty could fall if 5100 levels are broken. If Nifty does not recover above 5560 levels within the next two weeks taking support either above 5200 or 5165 levels, then levels below 5000 will be certainly seen.  Happy trading!

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