Tuesday, October 18, 2011

Trade Plan - October 19, 2011


Gap down opening at 5050 levels and Nifty remained range bound without breaching 5K levels with negative bias and a day good for small scalping trades from 5025-5040. The first indication of weakness is Nifty opening below and not trading @ or above 5-EMA levels of 5074 throughout the day. VWAP @ close is 5037.

1) The bias will be positive only above the 5-EMA level tomorrow (fallen to 5062 today), confirmed with a close above 5110 level.
2) Below today's low of 5011, Nifty could likely test 4965-4925 support levels.
3) The Nifty daily chart reviewed for 10 weeks (50 days) duration and the gap down opening of August 5th  needs to be closed next for which Nifty needs to sustain and trade above 5090 and give a closing above 5195 in the coming week ahead of Diwali .  Below 5110, Nifty will remain bearish. Happy trading :)

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