Market updates for 19/11/2012

 

Nifty daily chart

 

 

Nifty has finally breached the support at 5630 and closed at 5574 down by 57 points. Now it has very marginally closed below the trend line support. Further confirmation of down trend will depend on Monday's close. Technically Nifty may reach 5530 in short term and reversal of the trend will be close above 5630.

 

Nifty weekly chart

 

 

In yesterday's post it was said that if 5630 is breached on weekly basis then Nifty will test the ascending trend line. Whether Nifty has breached the trend line or not is debatable as this trend line can be drawn in many ways. However today's close below 5580 is the beginning of medium term down trend and so we have initiated bearish position in Nifty.

 

Nifty medium term trend

 

Trend	DOWN
Initiation Date	16-11-12
Initiated at	5574
Low since change	5574
Reversal if closes below	5800

 

 

Thought for the day

 

Every one is a moon and has dark side which he never shows to anybody. 

 

 

 

 

 

Market updates for 16/11/2012

 

Nifty daily chart

 

 

As expected Nifty has reached the support level which is at 5630. Clearly there is a weakness in the market however downside breakout may not happen immediately as Nifty has reach a level where there is multiple support. It is safer to short Nifty if it closes below trend line support which is around 5570.

 

Nifty weekly chart

 

 

Consolidation pattern is clearly visible in weekly chart. From past 8 weeks Nifty is unable to close above 5740 or below 5630. Even if Nifty closes below 5630 on weekly basis it can take support at ascending trend line and so there is every possibility that the breakout from this zone will be a false breakout. These are the various possibilities  lets see what happens in coming days.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	08-07-12
Initiated at	5336
High since change	5815
Reversal if closes below	5580

 

 

Open Positions 

 

Scrip	Type	Price	CMP	P/L
Nifty Nov Fut	Long	5792	5647	-7250
Nifty Nov 5800 PE	Buy	73	157	4200

 

Positions squared off 

 

Scrip	Buy Price	Sell Price	P/L
LT Nov 1650 PE	51	50	-250
LT Nov 1600 PE	28	24	1000
Total			750

 

Thought for the day 

 

A closed mind if closed long enough , can be opened by nothing short of dynamite.

 

 

 

 

 

 

Market updates for 15/11/2012

 

Nifty daily chart

 

 

 

Nifty is still in a narrow range and it is not giving any hint about when it is going to break out of this range. Since Nifty has failed to sustain above 5720 the logical target will be 5630.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	08-07-12
Initiated at	5336
High since change	5815
Reversal if closes below	5580

 

Open Positions

 

Scrip	Type	Price	CMP	P/L
LT Nov 1650 PE	Buy	51	56	1250
LT Nov 1600 PE	Sell	28	27	250
Nifty Nov Fut	Long	5792	5673	-5950
Nifty Nov 5800 PE	Buy	73	140	3350

 

 

Thought for the day

 

If trading is very easy then everybody will be doing it.

 

 

 

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Free counselling on financial issues - Moneylife

Market updates for 12/11/2012

 

Nifty daily chart

 

 

 

Nifty has  closed below the support at 5720 and has trapped the bulls. Now we need to see whether it reached the support at 5630 or once again reaches 5700-5750. Short term trend will remain up as long as Nifty is above 5630.

 

Nifty weekly chart

 

 

 

Nifty is testing 5740 from past 7 weeks !! but it is  unable to close above this level on weekly basis. A strong weekly close above 5740 is required to reach 5940 levels.

 

Chart of the day

 

Dow Jones Industrial Average

 

 

 

Dow Jones has closed below 200 DMA which indicates medium term down trend. Now we need to see whether Indian Index is going to correct or not.As of now market is sideways but down trend may happen if the support at 5630 is breached.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	08-07-12
Initiated at	5336
High since change	5815
Reversal if closes below	5580

 

Thought for the day

 

The mind is its own place , and in itself can make heaven out of hell , a hell out of heaven...- John Milton