Market Update for 22/06/2012

 

Nifty Hourly Chart

                                                     (Click on the image to enlarge)

Today market has ended up with significant gains. Nifty closed at 5165 up by 44 points. Banking,capital goods and reality were  major gainers in today's session. SBI,JP Associates,Reliance Infra, DLF were some of the major gainers in today's trade.

Nifty has breached important resistance at 5143 which is a bullish sign. Do not short market based on the assumption that it cannot go further. Even if you take short , based on a proven method , once you identify that market is moving in reverse direction EXIT.It is not necessary to win every trade. BUT we have to win average number of trades.

The next target for Nifty is 5193. Traders can book partial profit at this level.

Nifty Daily Chart

Before few trading session Nifty was range bound and it was alternatively closing above and below 200 DMA which was confusing the traders. From past two trading sessions Nifty has sustained above 200 DMA. Now it is expected to move towards the peak made on 18th which is at 5193. You can also see in the graph that 100 DMA is at 5199 which can also act as resistance. So further upside can be expected above 100 DMA. Above 5200 target will be 5300-5400. Reversal below 5050.

Chart of the day

Before few trading session there was a peculiar situation where chart f Nifty was looking Strong and Bank Nifty was looking weak. In fact we had suggested short on Bank Nifty at 9760 and covered at 9600. Nifty and Bank Nifty were moving in opposite direction. But now the positive correlation is reestablished.

Bank Nifty is looking bullish, there is a minor hurdle at 10100, but the target for Bank Nifty is 10400, reversal below 9800.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Havells	Long	150	545	246.7	255
Hero Motoco	Long	35	2050	2071	735
Tata Mot	Long	100	245.5	248.3	270

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Bata	100	810	840	3000
Jubl Food Fut	250	1177	1188	2750
SBIN 2100 PE	125	69	14.25	-6843
SBIN 2000 PE	125	26	3	2875
Nifty 5100 PE	50	45	23	-1100

Nifty medium term view

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

 

Thought for the day

When you find yourself in the valleys of life, don't kill yourself with grief. See it as a strategic position to have a clearer view of your ultimate destination - the peak.