Market update for 27/08/2012

 

Nifty daily chart

 

 

On Friday's trading session Nifty has closed below 5400 that is at 5386 down by 28 points. 5440 is a major resistance and now the supports are at 5380-5350. 14 day RSI is in overbought region and so far MACD has not indicated sell. If Nifty closes below 5350 then it may come down to 5300-5250.

Nifty weekly chart

 

 

 

In weekly chart Nifty is forming higher top and higher bottom. But 5440 is checking the uptrend. If Nifty cannot break 5440 then there are possibilities of reaching 5250 and after reaching this level another cycle of uptrend can resume.

 

Chart of the day

 

Rel Infra

 

 

 

Rel Infra is one of the under performer in the recent rally of the market. It has breached important support level and expected to continue the downtrend.

 

Nifty medium term trend

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5448
Reversal if closes below	5180

 

 

Position squared off

 

Scrip	Buy Price	Sell Price	P/L
Rel Infra	522	484	-38

 

 

Thought for the day

There are two ways to get enough one is continue to accumulate more and more another is desire less.

 

 

 

 

 

 

 

Market update for 24/08/2012

 

Nifty daily chart

 

 

As expected 5440 is acting as resistance . Nifty made an attempt to break 5440 by reaching 5448 but closing has happened at 5415 up by 2.5 points. 5380-5350 are important support levels and I would like to initiate short only below 5350. Yes , we may find many intraday short sell opportunities but sustainable down trend can be expected only if Nifty closes below 5350. So 5440 and 5350 are levels to watch.

Chart of the day

LT

 

 

 

Before few trading session LT breached the resistance at Rs.1441 and reached Rs.1480. But today it has closed below Rs.1441 which may indicates weakness in the chart. In short term LT is expected to take trend line support at around Rs. 1420  and if this trendline support is breached than we may notice major fall.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5448
Reversal if closes below	5180

 

 

Open Position

 

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	501	-21

 

 

Thought for the day

 

Everyone things of changing the world but nobody things about changing themselves.

 

 

 

 

 

Market update for 23/08/2012

Nifty daily chart

Today's trading session was a choppy session. Nifty reached a day high of  5333 and closed at 5212 down by 8 points. We were expecting a target of 5440 and it is almost reached.

 

What next ?

 

There are some interesting observation in daily and weekly chart of Nifty. 5440 is a region where there are multiple resistance. First resistance is a  trend line drawn by joining 5940 - 5620 and second resistance is formed at 5440 which is 78.6% retracement once we draw a Fibonacci retracement from 5625 to 4770. So far Nifty has breached many resistances such as 5300-5350-5380 but can it break 5440 ??.If it breaks then the target is 5500 - 5600. Traders should note that this is not a ' sell Nifty fut ' recommendation but it is a caution that market cannot rally forever , so , we need to start booking profit/loss and re enter once the breakout happens.

Nifty weekly chart

 

 

 

The structure of Nifty is clearly visible in weekly chart. RSI has reached overbought region in weekly chart as well. But in a perfect trending market RSI can remain overbought for longer than expected period.

 

Chart of the day

 

Dow Jones

 

 

 

Dow Jones Industrial Average (DJIA) has reached 13300 which is the important resistance level. It has reached this level for the fourth time in past 6 months and hence the importance of this level is very high. Dow Jones may consolidate at this level and if it doesn't break 13300 then it may come down to 12950 in medium term.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5433
Reversal if closes below	5180

 

 

Open Positions

 

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	510	-12

 

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
LT	1447	1459	12
REC	214.8	209.5	-5.3

 

 

Thought for the day

 

If you have something to do that is worthwhile doing , don't talk about it  but do it. After you have done it your friends and enemies will talk about it.

 

 

 

 

 

 

 

 

 

Market update for 22/08/2012

Nifty daily chart

Nifty has continued its uptrend by closing at 5421 up by 54 points. 5400-5380 were acting as resistance but now they can act as support. As long as Nifty trades above 5350 short term trend remains up and the expected targets are 5440-5500.

Chart of the day

LT

LT had resistance at Rs.1442 and after a breakout from this level it made a high of Rs.1480. Later it started falling and today it took support at Rs.1442 region . The short term targets are Rs.1480-1500 and reversal is closing below Rs.1442.

Nifty Medium term trend

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5425
Reversal if closes below	5180

Open Position

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	514.5	-7.5
REC	Long	214.8	210.3	-4.5
LT	Long	1447	1467	20

Today's Trade

Scrip	Buy Price	Sell Price	P/L
LT	1447

Thought for the day

If you find a path with no obstacles , it probably doesn't lead you anywhere.

Market update for 21/08/2012

Nifty daily chart

On Friday's trading session Nifty tested important resistance at 5400 and then came down to  5350 level. Nifty can trade between these two levels for some more time before breaking out. Nifty is making higher high and higher low in daily chart and this structure will change if Nifty closes below 5280 until then the trading strategy is to buy on dips. Important resistances are 5400-5440 and supports are 5350-5300-5280.   

Nifty weekly chart

Nifty has sustained the breakout from 5300 and has well sustained above this level. From last two weeks Nifty is facing resistance at 5380 which is 100 DMA in weekly chart. If Nifty sustains above this level then the target is 5440-5500.

Chart of the day

IDFC

IDFC is facing multiple resistance at Rs. 144. Buy if closes above Rs.144 , stop loss is closing below Rs.137 and potential target is  Rs.150-153.

Nifty Medium term trend

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5404
Reversal if closes below	5080

Open positions

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	510.5	-11.5
REC	Long	214.8	211.7	-3.1

Squared off positions

Scrip	Buy Price	Sell Price	P/L
Bank Nifty fut	10550	10439	-111
Bank Nifty 10500 PE	110	163	53

 

Thought for the  day

It is too clear and so it is hard to see. A dunce searched for fire with a lit lantern. Had he known what fire was he would have cooked his rice sooner.