The American markets rallied for the second day on Friday. This should set thet one for a higher open on Monday in Asia (including India). If we open higher and maintain the gains, then we are looking at a possible breakout from the trading range. The minimum targets for the range may be 3050 approximately. Will this come about ? No one can say this for sure. Traders should go with market flow. The flow seems to be on the bullish side.
How do you trade ?
If you are a swing trader, planning to take positions for a few days, then buy calls / futures / nifty ETF using the 15 minute rule .Your stops should be the mid point of the range, about 2790. If the trade moves in your favor, you can move the stop loss to break even. The management of exits is a very personal decision. I am only giving indicative ideas.
If you are a day trader, then buy after the five minutes from the open, above the five minute high. You can plan for an exit on any range expansion (big sudden move) in your favor. You can also plan for a reentry after a dip. In any case, going short will not be a good idea.
What can go wrong ? Everything. There is no guarantee that the markets will move up. But traders work on probability. That favors buying.
Please understand that day trading / swing trading is meant only for professional traders who are adequately capitalized.
Have Fun!
This is Sudarshan's blog - sudarshanonline.com. It discusses the technical analysis of Indian Stock Markets emphasising on online day trading and futures trading strategies.

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► October (28)
- Answers to comments oct31-11
- Process of Consolidation Likely
- Nifty Pattern Targets Reached
- Happy Diwali
- Stock Selection (based upon their historical volat...
- M&M Consolidation
- Niftnear ORB Trade
- A dip in an ongoing up trend
- TATA Motors Life Cycle
- Hindalco touches support
- Mystery of the missing trailing stop
- Nifty Live Oct 12-11
- Point and Figure Charts
- Aiming for a better trade
- Long term view of Nifty
- Zen stories for Traders
- Hero Motor Corp at its support level
- NR 7 in Nifty Weekly Chart
- trading with a gap open
- Silver Pushes against Resistance
- An unusual continuation pattern in the Nifty
- Sudden Rally
- Nifty at 4750
- There is a time to be old and a time to be bold
- Afternoon review
- Nifty - Long Term View
- Higher High - Higher Low pattern in CNX IT
- Bear market shows its strength
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► September (53)
- The Bear Story
- Nifty in a well defined range
- Morning View Sept 29
- Nifty Options Trade
- Nifty on way to close higher for this F&O settleme...
- Learning Ideas
- Short term trend is up
- Something Better
- A tale of two trades
- Before the Open - Sept 26-11
- Reliance - something better
- Nifty - A long term view
- Adding value to your analysis
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► October (28)
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▼ 2009 (293)
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▼ February (22)
- Taking Profits
- Dont look now, but the Nifty is not falling!
- A relief rally ?
- Good Morning, Tuesday
- Saturday musings
- More weakness ?
- The Analyst as a Trading System
- Confused !
- Market sees a break down
- Still up but uncertain
- Down moves ?
- The wise are still worried
- Back to Square One ?
- After a big move, a narrow range day ?
- Is a bull hiding somewhere ?
- Whipsaws in Trend Following Systems
- Take it Easy
- We have seen this before
- Trading as a Profession
- It is still a trading range
- Good Morning, Monday
- The Wall Street culture in Dalal Street
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▼ February (22)

4 comments:
SIR IAM FOLLOWING ONLY FIFTEEN MINUTE RULE,IF U CAN EXPLAIN ABOUT THIS FIVE MINUTE CLEARLY,ITS AN ADDED ADVANTAGE FOR US.YOU ARE A GENIUS SUDARSHAN JI.THANK YOU FOR YOUR VALUABLE SUGGESTIONS.
Sir,
Nifty will certainly pay for long positions above 2890 but I think it wii be prudent to buy after retest of 2870-90 level after break out.
sir,
keep it for trader who read or visit this blog daily for take profit by this blog.
is any one simple rule to apply for nifty buy/sell for positional[week or 3-4 day]pl say or help for it?
hello sir,
last month was typical non trending month. i think many traders including me must have faced failures in our trades, how were u managing ur trades what indicators u use to keep urself out of such mkts ??
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