Trading Strategy for 24/05/2012

Nifty Hourly Chart

In today's trading session , even though Nifty took support at 4830 for some time, the support was breached and Nifty made a low of 4804. The expected level of 4788 was not reached. But still I hope that you have made a small profit of 15-20 points.

The major support at 4830 is still valid as Nifty has closed at 4935. 4830-4788-4766 are the major hurdles for bears. However the support/resistance levels are not eternal. Traders should remember the point that support/resistance levels are build to break.

Until Nifty is below 4955 the strategy should be sell on rise.

Nifty Weekly Chart

Weekly chart of Nifty gives a better picture than the daily chart. In the above graph it is clearly visible that last week the descending trend line was breached but Nifty bounced back to the levels of 4955. In this week if Nifty manages to close below 4800 then we can expect major fall.

The overall trend of Nifty remains down and expected to be down for some more time. The short lived upward rallies are nothing but bear market rallies. Sometimes intraday or positional buy recommendation is given to utilise this bear market rally.

INR/USD

Today INR made a shocking low of Rs.56.26 and now expected to go down up to 58.00.

In today's uncertain world economy the only thing which is in classical bull run is Petrol. There is hike of Rs.7.50 per liter. The hike was expected as rupee has taken a dive. But the quantum of increase is a big surprise.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
SBI	Long	10	1907	1955	480
Bank Nifty fut	Short	25	9127	9135	-200
Bank Nifty 9200 CE	Long	25	128	135	350

Intraday Calls

Scrip	Type	Qty	Price	CMP	P/L
Bank Nifty 4900 PE	Buy	25	182.5	225	1062.5

 

Thought for the day

Of all the speculative blunders there are few greater than trying to average a losing game. Always sell what shows you a loss and keep what shows you a profit - Jesse Livermore

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