Friday, November 18, 2011

Trade Plan - November 21, 2011


Nifty trades in the support zone of 4830 to below the resistance level of 4935 on spot prices. It clearly shows the market is exhausted due to lack of volumes and consolidating around 4900 levels. VWAP @ close is 4887. Nifty closes at 4906.

1) Nifty is trading below all short term and long term EMAs and is weak. However, with expiry week beginning on Monday, the short sellers need to close/rollover their positions and a rally can likely happen towards 5050 above 4935-4950 range of spot prices only.
2) Below 4935, Nifty will once again visit 4850 or lower towards the lows of the year at 4720. Global cues will be important now as the earning season is out of the way. Market needs some positive news to infuse some energy into it and now clearly dependent on short covering rallies etc. Have a great weekend. Happy trading :)  

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