Charts and Trading Plan for 11/03/14

The Nifty showed signs of balancing today and a possible end to the large drive we have seen from last week.


That move which started last tuesday has already done 366 points in the Nifty and 1586 points in the Banknifty in 5 sessions.




The BNF had a trend day with a open at one end and a close at the other.


Our view was that the longs would not have any trouble over 11750 and that buys could be initiated again over PDH for 12228. The BNF hit 12199 in today’s trade.


For tomorrow the vwap of the trend day at 12077 is first support.


We will continue with the long bias above 12077 for tomorrow and can add above 12228 for a look at 12480 later this week.




The Profile chart still shows single prints at the base which means a market fully in control of buyers.


If we break below 12070 then we can get to 11967 quickly a move of 100 points.


There was evidence of buyers at 11950 twice in today’s auction


The Nifty’s profile chart below shows a balance developing.


This means that the upmove is nearing a short term top and a sideways move can begin.


For the move which started last week, the support now is at 6480 and only weakness below 6480 can invite selling to restest the previous base highs of 6370.





Intra day tomorrow weakness is below 6557 and the 6520 mentioned yesterday.


Value areas will come into play tomorrow.


If we break above pdh in the latter part of the session then it could signal 6652/ 6680 as targets.