Market Update for 28/05/2012

Nifty Hourly Chart

Friday's trading session was a flat session with no major movement. The expected target 4955 looks achievable. The reversal of the trend will be below 4850.

This is a consolidation phase which is happening from 11th may and many of us are blaming the market. We can't expect the market to rally everyday and also we cannot dictate our terms and conditions. All we need to do is to wait for the opportunity to appear and then grab it. The golden rule should be ' no indication - no trade'. Let us not trade because it is difficult to sit in front of terminal without doing anything.

Nifty Daily Chart

In both hourly chart and daily chart it is visible that the rate at  which market was falling is stopped and we are in a phase of consolidation.  Moving Average Convergence Divergence has given a buy indication in last trading session . Nifty can face a hurdle at 4955-60 levels. Once this resistance is breached we can expect a upside rally and targets will be 4984-5108-5207-5307 and reversal is below 4780.

We may not see any major movement in May series and Nifty is expected to close in the range of 4800-5000.

 

Nifty Weekly Chart

From past two weeks Nifty is unable to break the descending trend line.This may not happen in the short term unless a major bad news enters the market. Unless we see a weekly close below 4800 we cannot expect further fall in the market.

Hindalco Hourly Chart

The trend of Hindalco was down and Hindalco trading between two parallel lines. During last trading session the price has marginally closed above the line. We had recommended buying 110 call option at Rs.3 and profit booked at Rs.3.90.

On Monday observe Hindalco for half an hour and if stock price is above the trend line buy 500 shares for short term keeping a stop loss below Rs.108. If it trades below the trend line then we can expect a reversal. In such situation traders can short keeping a stop loss above Rs.113.

Open Positions

Scrip	Type	Qty	Buy Price	CMP	P/L
SBI	Long	10	1907	2008	1010
Axis Bank	Long	86	988	1003	1290