Trade Plan - April 1, 2011

Nifty trades above 5800 in the morning session and touches high of 5872 before crashing to test support level of 5775 and recovering in the last hour of trade to close above another important level of 5825. VWAP @ close is 5862 and Nifty closes at 5834.

1) Nifty is still bullish after 7 straight days of gains and the next target on upside is 5925-5965. Reversal level will be 5825 tomorrow.
2) Below 5825, levels to be watched for support are 5770-5735-5680.
3) The 5-EMA has risen to 5734 at close today. Amongst index stocks, Reliance is looking bullish with a close above 1050. The index is obviously getting geared for the yearly results and price is following the expectations.  Another stock to watch this month is Reliance Capital for target of 650+ along with telecom stocks Bharti and RCom.  Happy trading!

Trade Plan - March 31, 2011

Nifty continues its uptrend with a quiet day and consolidation around 5770 levels after the gap up opening. VWAP @ close is 5796. Nifty closes at 5788.

1) Up trend will continue if Nifty able to sustain above 5800 levels for target of 5850-5900. The level of 5768 will be reversal level.
2) Below 5768, Nifty should test 5700-5685 levels.
3) Tomorrow is expiry of March series and a positive closing can be expected above 5770 levels with some intra day volatility.
4) The 5-DEMA has risen to 5684 @ EOD today. Happy trading!

Trade Plan - March 30,. 2011

The uptrend of Nifty continued today above the level of 5680 to touch a high of 5770 and closes @ 5736. VWAP @ close is 5750.

1) After the continuous rise over the past 5 sessions, a consolidation phase can be expected and Nifty should trade range bound between 5735-5800 now if the bullish momentum shows continuity.
2) Break of 5735, brings into play the level of 5680-5630.
3) The 5-DEMA level at close today is 5633. It is certainly a buy on dips market around 5650 levels for a target of 5825-5925 positionally for the April series. There are just two trading sessions left for the March series to expire and these sessions will be highly volatile.  Happy trading!

Trade Plan -March 29, 2011

A flat opening to the week but Nifty gains momentum to test a high of 5709 and closes at  the 200-SMA level of 5687. VWAP @ close is 5697.

1) Nifty is trading above all EMAs and now needs to close above the 200-SMA level of 5685 for a few days for this upward momentum to continue. The level to watch will be 5680 and above only with a close above 5750 levels.
2) Below 5680, not much downside can be expected and corrections should be up to 5580 levels.
3) The 5-EMA at EOD today is 5581. Happy trading! 

March 28, 2011

A day of trend change with Nifty opening with gap up and once it traded above the 200-DEMA level of 5583, higher buying volumes of heavy weight banking stocks along with Infy made the index rise and close near the highs of the day. VWAP at close is 5629. Nifty closes @ 5654.25.

1) Nifty has closed above all long term EMAs and is bullish for the immediate short term with the market gearing up for the expected yearly results of companies. It is buy on dips now.
2) For intra day 5580 level will be the reversal level now. As long as Nifty trades above the longer term EMA, there will be buying. Some consolidation can be expected in the first two days of the next week and the expiry of the Nifty for March series should be above 5650-5750 levels.
3) The 5-EMA level has risen to 5528 at close today. Happy weekend! Happy trading!

Trade Plan - March 25, 2011

A day of consolidation at 5500+ levels today and with marginal increase in volumes today, trading remained range bound between 5500-5528 levels.  VWAP @ close is 5532. Nifty closes at 5522.

1) Gap up opening and sustaining above 5520 should take Nifty above 5565 levels where some resistance could be seen on the weekend tomorrow being the penultimate week to expiry. If the longs are strong and add more volumes, then a good rally can take beyond 5600 levels.
2) Gap down opening will offer buying opportunity only if level of 5500 is not broken.
3) The bias is up. The 5-EMA level is now risen to 5465 and going short should be only below 5465. Happy trading!

Trade Plan - March 24, 2011

A good opening just below 5-EMA but sustained buying in early morning trades helps Nifty to remain above 5-EMA level and close @ 5480. VWAP @ close is 5478.

1) A steady trading day without hiccups above 5-EMA/5-SMA levels to get back into the zone of 5465-5480.
2) Tomorrow, this positive momentum will continue only if Nifty moves to trade above 5500 on spot prices and with more buying should cross 5565-5620 in a few sessions. Stop loss or reversal level will be 5465 for intra day players.
3) Below, 5465, the levels of 5400-5365 will again be tested for buying support.
4) The 5-EMA level at close is 5437 and Nifty has closed well above this level today. Happy trading!