Review of 15th Feb and Update for 18th Feb 2013

NIFTY FUTURE – Review of 15^th Feb

NIFTY FUT –  For Friday and even during the past few sessions we had mentioned that breach of 5890 will call for a test of 5860.
Lets review what we exactly wrote, “On the downside levels immediate support comes at 5860 levels”,
NIFTY FUT marked a low just there (5858) and pulled back smartly to manage a close above 5860 levels.
From a technical levels point of view the interesting part is to review where the pull back exactly stopped.
The high made during the course of the pull back was 5909. Remember that level? This was our breakdown level to be watched out for just few sessions back.
For day trading references once in the morning when NIFTY FUT opened and traded below the TREND DECIDER of the day, NIFTY FUT went down to test the BULLS LAST Stand point of the day, break of that will have further enabled short trend to continue. But since that level was sustained NIFTY FUT pulled back again to hit the trend decider of the day, giving literally two trading opportunities using the levels.
Few friends asked for a pictorial depiction of how to trade the daily trading levels from an intraday trader or a short term trader point of view. Find below the charts and the trading plan to be followed below:
< Charts attached at www.powertrades.blogspot.com>

NIFTY FUT 15 FEB- TRADE ANALYSIS WITH LEVELS

Reading the charts:
the 3 lines show the daily trading levels: BULLS LAST STAND point, TREND DECIDER and BEARS LAST STAND POINT
The yellow arrow shows the start of the day
The short Blue line depicts the intraday trading support/resistance formed.

Trading Approach/Strategy:
The approach is to break down the information available before hand and the information formed during the market. So the daily levels are available to me as a trader before the start of the day, The market open information gets available to me at the start of the day as well.
We also know that the  short term and mid term momentum indicators are weak. So, in the morning session markets open and start trading below the TREND DECIDER of the day. Once that is confirmed we can initiate shorts below that zone looking for targets firstly near the BULLS LAST STAND point  and then below it.
When price is near or touches the BULLS LAST STAND point, safe traders can close positions and look to take trades only below it. Or trail with the intermediate support formed (identified by blue line) as a trailing stop.
Second Trade: Since price retraced from the swing zones of 5860, and once it moves above the intraday level a contrarian long can also be taken with low stop loss to give another quick 20-30 points gains.
Hope the strategy approach helps.

NIFTY FUT leaves us in doubt again with a close above 5860 this time. What are the trading levels to watch out for?

NIFTY FUTURE – 15^th Feb  Trading Guide

NIFTY FUT –  tested the swing support zones of 5860 and managed to pull back and close above it . On the upside it also managed to test 5910 levels. This will prove as the immediate hurdle to watch out for in the coming session.
Based on these two levels in view NIFTY FUT range to watch out for is 5860-5910. This range should decide the further course of the market trend.
Although on the downside a breach of 5860 will also go  find support below it at the swing support levels of 5830 zones. We are looking at that level to decide the mid term trend of the market.
For immediate trading levels, the 5860-70 zone will prove to be the Trend decider of the day. below that expect a test of 5830. Incase 5830 is broken NIFTY FUT can drift all the way to test 5790 in the coming sessions.

On the upside all rise to 5925 levels will be resisted and immediate hurdle remains at 5910 zones. A clear of 5925 should confirm the market trend reversal for the short term . Swing hurdle will continue to remain at 5960 levels. This is the level the mid term BULL players will watch out for.

Swing indicator wise the short term are  now neutral and will be negative below 5860 and positive above 5910 levles.  Mid  term momentum indicators are negative now and will continue to hold so until NIFTY FUT trades below 5925  levels
As for trading today the levels are as follows and pretty much remains the same:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5900-10   sustaining above which it will target 5925,5965,5995
POWERTRADE TREND DECIDER OF THE DAY ------- 5860-70
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5830-35
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5810,5790,5760