Market Update for 18/06/2012

Nifty Hourly Chart

                                                      (Click on the chart to enlarge)

Nifty has formed a bullish pattern by achieving higher top and higher bottom. 5048, 5017 are the important support and 5146 is the important resistance. The earlier resistance was at 5124 which was breached in the previous trading session.

On Monday we can expect a gap up or gap down opening as the election result of the Greece will be announced and another important event is RBI policy. So market is expected to be highly volatile. So traders should be cautious in deciding the trades.

Nifty Daily Chart

Nifty has breached the decending trend line and it has once again closed above 200 DMA.Even though Nifty was down on Thursday's trading session the closing was above trend line. So the prevailing uptrend was not disturbed.

MACD is still indicatind uptrend and RSI is at the levles of around 66. So there is some more upside left in the market. Nifty is trading above important moving averages like 20,50 and 200 DMAs. It is also likely to test 100 DMA at 5200. The reversal of Nifty can happen if it closes below 5000.

Nifty Weekly Chart

In weekly chart Nifty has crossed 32.8% retracement level . It has also closed above decending trend line which was drawn by joining 5627-5341. Next target is 5192 and 5295. Aroung 5200 levels short term traders can exit part of the long positions and further profit booking can be done at 5295 i.e 61.8% which is the golden ratio.

Chart of the day

Infosys Ltd

Infy was hammered down after the poor Q4 results. Infy was trading in a narrow range which is between 2523-2290. This process is called base building. From past 4 trading sessions this stock is moving continuously and in the last trading session it has tested the upper pasr of the range. The gap which was formed 2733-2520 can be filled if Infy closes above 2525. So wait for the breakout and buy if Infy closes above Rs.2525 and stoploss will be closing below Rs.2500.Expected target Rs.2560-2600 and above.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Havells Ltd	Long	150	545	542	-450
Nifty 5200 CE	Long	50	70	67	-150
Nifty 5100 PE	Long	50	74	80	300

Todays Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Bank Nifty Fut	25	9960	9830	-3250
Bank Nifty 9900 CE	25	230	275	1125

Nifty Medium Term View

Nifty Medium Term Trend	Up
Date of Initiation	12/06/2012
Initiated at	5116
Reversal if closes above	4880

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This view is based on higher time frame and different parameters. Traders should not get confused  with other updates. Thought for the day “We are what our thoughts have made us; so take care about what you think. Words are secondary. Thoughts live; they travel far.” - Swami Vivekananda