Monday, December 12, 2011

Trade Plan - December 13, 2011


Nifty trades below reversal level for the day 4935 waiting for IIP  numbers at support level of 4865 for the morning session. Post the announcement of IIP numbers and depreciating currency, Nifty tanks below 4865 to test 4755 levels. VWAP @ close is 4823. Nifty closes at 4865.

1) Reversal level remains 4865 for tomorrow if Nifty opens up gap up and short covering rally is induced by market makers.
2) Now below 4755 in case of gap down opening, support levels will be 4690-4635 for an intra day U-turn towards 4765.
3) Overall bias is negative and this is the third consecutive day below the 5-EMA level close. Happy trading :)

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