Market Update for 29/05/2012

Nifty Hourly Chart

Nifty was trading in a range of 4955-4800 from many trading sessions. In the last trading session Nifty has breached the resistance at 4955 and closed at 4985. The importance of this breakout is high and we can expect more momentum in the market. Now Nifty is expected to reach the levels of 5030-5100 in few trading sessions.

 

Nifty Daily Chart

There are multiple buy signals in daily chart of nifty.

MACD has given a buy signal.

RSI is above 30 and increasing

Parabolic SAR has given buy indication and SL is 4800.

Nifty has come out of the trading range 4800-4950.

Nifty has closed above 20DMA which is at 4882.

So the general trend of the market is up and as long as 4800 holds this correction from 5600 can be considered as a correction in bull market. So do not short Index or individual stocks. As per fibonacci retracement next levels to watch will be 5108,5207. We also need to consider 200 DMA which is at 5075. 

Banks have been an out performer from few years and they will continue to outperform. So keep an eye on SBI,ICICI Bank, AXIS Bank and YES Bank in Banking space. Traders can also consider BHEL, LT and TATA MOTORS. Cairn and Bombay Dyeing also has potential to move up further.

Please trade with stop loss.

Results

HPCL,ABG Shipyard, LITL,Aurobindo Pharma, Sun Pharma, SAIL and others

Open Position

Scrip	Type	Qty	Buy Price	CMP	P/L
SBI	Long	10	1907	2101	1940
Axis Bank	Long	46	988	1029	1640
JSW Steel	Long	80	610	608.5	-120
Nifty 5000 June CE	Long	100	102.65	116.6	1395
Nifty 4900 June PE	Long	50	98.5	89.3	-460

 

Intraday Trades

Scrip	Type	Qty	Buy Price	Sell Price	P/L
JSW Steel	Buy	80	610
Axis Bank	Sell	40		1019	1240
Nifty 5000 PE	Buy	100	83	65	-1800
Nifty 5000 June CE	Buy	100	102.65
Nifty 4900 June PE	Buy	50	98.5

 Thought for the day

Traders who fail to set a goal may live for the thrill associated with wining big but will likely to experience the pain of defeat more often.