Trade Plan - September 2, 2011

The upward momentum continued today and Nifty closes above 5K mark today. VWAP @ close is 4977. Nifty closes at 5001.

1) Longs only above 5015 for targets of 5045-5090-5115 after the two day festival holiday break.
2) Below 4980, Nifty will again become weak.
3) An overall picture clearly shows Nifty is going up based mainly due to short covering rally and the median level of the projected September range a few days back is 5070 and this level needs to be crossed now with close above 5110. Happy Eid and Ganesh Chaturthi :) Happy trading :) 

Trade Plan - August 30, 2011

Nifty pulls back to close above 4900 following better global cues mainly due to short covering rally.  VWAP @ close is 4887. Nifty closes at 4920.

1) Nifty has closed above the 5-EMA level after nearly 20 sessions and the short term bullishness will continue above 4935 for immediate target of 4975-5020. The week should end above 5110 for bullishness to continue.
2) Below 4900, Nifty can slip back towards 4850-4800 range this week. Happy trading :)

Trade Plan - August 29, 2011

Nifty tanks below 4830 mid afternoon and falls below 4790 to test 4720 levels. VWAP @ close is 4804. Nifty closes the week at year low of 4748.

1) Reversal level will be above 4830 on closing basis and 4790 is stiff resistance level and it will be few sessions before Nifty will attempt go close above this level .
2) The next support levels are 4695-4630-4570.
3) The level of 4790 will be level to watch on Monday and above this level short covering rally can be expected.  Happy trading. Happy weekend :)

Trade Plan - August 26, 2011

Nifty has a volatile and range bound session today between 4830-4890 with negative bias after gap up opening at 4915. VWAP @ close is 4865. Nifty spot closes at 4840.

1) August series expires on a negative note closer to the lows of the year 2011. Now 4890 remains the major reversal level for targets of 4950-5045.
2) Below 4830, major support level will be 4790 and 4770.
3) A weekly chart of spot Nifty has been analysed and  important levels for  September series will be 4790-5070-5350.  Below 4790 levels,  strong possibilities for testing 4570 opens up. A close above 5070 is required in the earning season kicking off in the first week of September 2011 for the market to get buyers back.  Happy trading :) 

Trade Plan - August 25, 2011

Nifty fails to trade above the 5-EMA level of 4950 and drops below 4930 and closes below 4890.  VWAP @ close is 4918. Nifty closes at 4889.

1) The bias continues to be negative below 4930 now and intra day support of 4890 is broken too. Targets on downside will be 4830-4770.
2) Reversal level will remain above 4930 now and wild swings in a volatile expiry trading day can be expected tomorrow in the August series.
3) The global cues do not give any hope for upside above 5000-5050 levels now in immediate short term.   Happy trading :) 

Trade Plan - August 24, 2011

Nifty closes at 4949 after consolidating in the morning and trading  comfortably above 4900 levels to test 4965. VWAP @ close is 4922.

1) Some more short covering should take Nifty to 5000-5045 with reversal below 4930 only tomorrow.
2) The bias is still negative and fall below 4930 can again take Nifty back to 4830 levels.
3) Nifty today has closed just below the 5-EMA level of 4950 and needs to trade above this level tomorrow for further upside towards 5000.  Happy trading :)

Trade Plan - August 23, 2011

Short covering rally in the expiry week makes Nifty recover from 4830 levels to close at 4898. VWAP @ close is 4867.

1) Some more short covering and Nifty will go past 4940-4975 tomorrow. Support/Reversal level will be 4890.
2) Below 4890, Nifty will test 4830 once again and below this level 4770. Happy trading :) 

Trade Plan - August 22, 2011

Gap down opening and Nifty plummets to near the May 2010 lows and closes at 4846. VWAP @ close is 4854.

1) Below 4830, Nifty has likely support at 4775-4720.
2) Reversal level will be above 4890 towards filling the gap down created today to 4930-4965.
3) The volatility index has risen once again and sharp swings either side of 4890 can be expected on Monday. Happy weekend.  Happy trading :)

Trade Plan - August 19, 2011

Nifty keeps falling today after the flat opening fails to sustain above 5075. VWAP @ close is 4983. Nifty closes at 4944.

1) Below the expected support level of 4920, Nifty could now fall to 4875-4830. Nifty has closed near the lows of day and the downtrend could get accelerated by a gap down.
2) Above 5000-5020 will be the  levels of recovery/reversal for Nifty tomorrow with gap up opening and support is regained at these levels. Happy trading :)

August 18, 2011

Nifty remains range bound today between 5020 to 5110 and now VWAP @ close is 5066. Nifty closes at 5057.

1) The reversal level for tomorrow morning is Nifty sustaining above  5075 for target of 5110-5150.
2) Below 5020, Nifty becomes weak and could likely test 4950-4900. Happy trading :)

Trade Plan - August 17, 2011

The downward journey of previous week continues into this week and Nifty is now considerably down  and closes @ 5036. VWAP @ close is 5075.

1) Below 5035 Nifty can now fall to 4970-4930.
2) The level of 5110 will remain the level of reversal and Nifty will face resistance around 5075-5110 levels now. Happy trading!

Trade Plan - August 16, 2011

Nifty breaks on the down side below 5110 and closes at 5073. VWAP at close is 5104.

1) Gap up opening and Nifty did not manage to stay above that crucial level of 5185 in spite of better than expected IIP numbers. Traders are just not confident of carrying positions over a long weekend. This sentiment highlights the bearish sentiment prevailing in the market.
2) Now with a close well below 5110 at 5073, the next targets on the down side are 4950-4890. Happy weekend! Happy Independence Day and happy trading :)

Trade Plan - August 12, 2011

Nifty trading within the range of 5110-5185 and closes below the median of this range @ 5138. VWAP @ close is 5133.

1) Views remain same as yesterday and the range extension above 5185 should take Nifty to 5240-5280-5350.
2) Below 5110, support levels will be 4975-4890-4820.
3) Bias is down overall and tomorrow some short covering can be expected if there is gap down opening. Global cues are very bearish and the volatility is high. Happy trading :)

Trade Plan - August 11, 2011

The Nifty trades range bound after huge gap up opening on better global cues and trading between support of 5110 and 5185 levels for most of the day. VWAP @ close is 5160. Nifty closes at 5161.

1) Above 5185 will be reversal level for target of 5240-5265.
2) Below 5110, the levels of support are 4975-4930. Happy trading!!!  

Trade Plan - August 10, 2011

Weak global cues persist to drag the index with gap down openings and then recovering to fill the gap. VWAP @ close is 5060. Nifty closes at 5073.

1) Next support levels are 4850 and 4730 below 4950 or gap down opening tomorrow.
2) The range likely to get formed in the immediate short term is 4850-5350 . A close above 5185 should confirm this.
3) Volatility has made intra day trading good in spite of the gap down openings. Nifty is below all technical levels and the transition to form an appropriate trading range is what the current happenings in Nifty suggests.  Happy trading :) 

Trade Plan - August 9, 2011

Nifty opens another huge gap down at 5084 and takes U-turn towards 5204 and finally tanks to close at 5118. VWAP @ close is 5122.

1) The bearish trend continues and reversal level will be above 5185 tomorrow with close above 5240 only.
2) Below 5110, Nifty could break to 4950-4850 level.
3) Gap down opening below 5050 tomorrow, could take Nifty to 4850 very soon. Volatility is high and being on right side of volatility helps day trading now.  Happy trading :) 

Trade Plan - August 8, 2011

Nifty tanks with a huge gap down opening and takes U-turn from the levels of 5115 based on short covering rally to close at the crucial level of 5211. VWAP @ close is 5187.

1) The overall scenario is bearish and volatility index is on the rise with uncertainty in the global markets. Nifty should test 5070-4990 in this volatile scenario.
2) It will take a few weeks for the volatility to stabilize and being on the right side of volatility is what is required now as threat of gap down/gap up openings restricts a trader to carry overnight position comfortably.
3) Reversal level for Nifty will be 5240 on closing basis for targets of 5290-5340. Have a great weekend!!! Happy trading :)

Bank Nifty Update

A quick view of the Bank Nifty with today's gap down opening. Bank Nifty is poised to test 9600-8800. The level of 10330 is an important support level now.!

Trade Plan - August 5, 2011

The fall in Nifty continues in tune with global indices and now VWAP has fallen to 5384 levels. Nifty closes at 5332.

1) The scenario is bearish once Nifty closed below 5555 and continues to be so.  Nifty needs to find support at lower levels once global markets are also stabilized and the levels of support are 5290-5210. Below 5210, the important support level will be 5110.
2) Any bounce above 5380-5390 level will be short covering rally towards a target of 5410-5425. Happy trading :)

Trade Plan - August 4, 2011

The downtrend continues with some buying seen towards end of the day today mainly with short covering rally to close with a high premium in futures price. Nifty spot closes at @ 5405. VWAP at close is 5412.

1) Some short covering rally above 5425-5440 spot price can be expected tomorrow as Nifty is in oversold zone and a bounce is expected. Reversal level is 5425 spot price levels.
2) Break of 5380 has happened today and below today's low of 5378, next support levels are 5350-5310-5270. Happy trading :)

Trade Plan - August 3, 2011

Downtrend continues and Nifty closes @ 5457. VWAP at close is 5464.

1) The downtrend continues and the expected level of 5435 finds support. Now Nifty finding support above 5480, can aim to touch 5505-5530-5555 levels purely based on short covering rally intra day tomorrow. Reversal level will be 5505 to initiate longs.
2) Below 5480, next level of support below 5435 is 5395-5355. Happy trading :)

Trade Plan - August 2, 2011

Gap up opening above 5525 but failing to cross 5555 and sustain above 5550 levels on spot prices and closes at 5517. VWAP is 5526.

1) Views remain same as on the weekend. Nifty remains weak below 5555 close on spot prices for interest to be generated in the market. Levels above 5555, will be 5585-5610.
2) Below 5495, levels to watch 5430-5380. Happy trading :)