Market update for 26/06/2012

 

Nifty Hourly Chart

Today Nifty ended with moderate decline. Auto, Banks and metals were major losers. Nifty closed at 5114 down by 31 points.

As expected Nifty tested 5191 again but it is unable to break 5191. Profit booking might have started at these levels as Nifty has rallied from the level of 4800. In the earlier trading session Nifty has tested 5094 twice and bounced back. In the earlier post I had mentioned that 5094 is the important short term support. If  short term dip continues 5094 can act as important support and if Nifty breaks that level then target will be 5050-5000. Now the trading range is 5094 to 5191 . Wait for the breakout to happen before taking positions. Sometimes the best thing to do in market is to sit with cash and wait for opportunity.

Nifty Daily Chart

Nifty is facing multiple resistance around 5200 levels. 5200 is the 50% retracement of fall from 5623 also 100 DMA is located near 5200. RSI is in overbought range. So unless Nifty closes above 5200 we cannot expect further upside. As per daily chart short term reversal is closing below 5075 target 5000 and below.

Chart of the day

INR/USD

Rupee has continued to depriciate against USD. This depriciation is expected to continue further and the target is 58. Short term reversal can happen if INR closes below 56. Major reversal of the trend can happen only below 54.50.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Yes Bank	Long	65	340.5	339.1	-91
Tata Mot	Long	100	245.5	246.2	-70
Nifty 5100 PE	Long	100	33	35	200

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Hero Motoco	15	2050	2107	855
Yes Bank	65	340.5	349	552
Bank Nifty Fut	25	10010	10160	3750

 

Nifty Medium Term View

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5191
Reversal if closes below	4880

Thought for the day

"I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over." - Warren Buffett