Thursday, November 17, 2011

Trade Plan - November 18, 2011


Nifty tanks further below the support level of 5010 to test 4935 support zone which is also broken now and closes at 4919. VWAP @ close is 4994.

1) Nifty will try to recover from 4935 support zone tomorrow towards 4970-4990 purely based on short covering rally as the short sellers have remained dominant throughout this week and would initiate a short covering ahead of the expiry week.
2) Below 4935, Nifty has support @ 4880-4835. One can expect a highly volatile session tomorrow. It will take at least two to three sessions to consolidate around some support level for Nifty  and avoiding intra day trading, if not already short positionally, is the best option. Buying 5000 CE for the next series will be the appropriate hedge if positionally short now.   Happy trading :)

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