Monday, February 7, 2011

Trade Plan - February 8, 2011


Range bound Monday session with Nifty holding the level of 5375 level but failing to go above 5465 levels. VWAP @ close is 5407. Nifty closes @ 5406.

1) Bias continues to be negative with intra day reversal level for tomorrow being 5465 with close above 5525 levels.
2) Fall below 5345, bring in 5280 level into play.
3) The market likely to be range bound till the Union budget is announced this month. It will be make or break after the Union Budget. A tough budget certainly means lower circuit of the index as India Inc is fed up of the corruption running across the breadth and length of the country in all spheres of governance and with political points being scored in media rather than in the parliament by a bunch of scamster politicians. The PM who is the father of economic reforms in India is unable to reform the ministers he has to work with as honesty and meritocracy has been put on the backburner and nepotism and corruption have gained precedence.  The image of the government has certainly hit the lower circuit with the economic scams and market has voiced its concern in the most emphatic manner.  The only trigger for the lower circuit required is for a massive FII sell off. Avoid trades on long side if not already positionally short. Trailing stop loss for positional short positions is 5515 as of now on closing basis. Happy trading! 

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