Nifty view for 07.03.2012

Trading on event days can be hazardous is the lesson we learnt today the hard way.The intraday volatility was at its maximum with nifty swinging both the upper end and lower ends in a day.What one can observe in this up swing was there were not more than 2 days fall in the up move. Now the reverse is happening and there is not more than 2 days up move in this fall.Money Flow Index shows the early signal with money flowing out from the markets very early. The channel of price action will guide us further about the trend. Intraday traders can look at the levels given below to trade on 07.03.2012.

Spot Nifty levels for intra-day trade on 07.03.2012
No trade between 5204 and 5240(to avoid whipsaws)
Buy above 5240 with SL of 5220 
for targets of 5258-5274(breakout  level on the upside,add positions) 5292-5310-5328-5346-5364-5382.

Sell below 5204 with SL of 5224 
for targets of 5186-5168(breakdown level on downside, add positions)5150-5132-5116-5098- 5080- 5062.

Happy Trading !