Market update for 27/06/2012

Nifty Hourly Chart

Another day of consolidation. Nifty has closed at 5120 up by insignificant 6 points. We are still in a narrow trading range of 100 points that is between 5063-5191. Since today the closing has happened near lower part of the range we need to see whether market crawls up to 5143-5191 or breaks 5093.

If breakout happens then there is every possibility that we can expect a 100 points movement in Nifty. So the target should be either 5300 or 5000. Now the trading strategy should be buying above 5200 or selling below 5090. Traders are requested to wait for sustainable breakout .

Nifty Daily Chart

There is no significant changes in Daily chart. Nifty is trading between 200 and 100 DMA which are at 5200 and 5075 respectively. Major reversal can happen only below the descending trend line. The trend line which was acting as resistance can also act as support. So major reversal can be expected only if Nifty closes below the trend line. Closing below the trend line for a day or two can take Nifty to 4800 again. Note that this is only an observation and breach of the trend line can take more time.

Chart of the day

 

SBI hourly chart

SBI has been one of the outperformer in the recent rally. It is leading the  rally in Nifty as well as in Bank Nifty. It is a buy on dips stock and since it has reached  important trend line support it can be bought. The risk involved is very limited. Buy SBI around 2100 for a target of 2130-2160 and above  stoploss is below 2080.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Yes Bank	Long	65	340.5	341.4	58.5
Tata Mot	Long	100	245.5	246.2	-70
Nifty 5100 PE	Long	100	33	35	200
Bank Nifty fut	Long	25	9975	10002	675
Bank Nifty 9900 Put	Long	25	260	265	125

Today's Trades 

Scrip	Qty	Buy Price	Sell Price	P/L
Bank Nifty fut	25	9975
Bank Nifty 9900 Put	25	260

Nifty Medium Term View

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5191
Reversal if closes below	4920

Thought for the day

Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it - even though others may hesitate or differ. You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right. - Banjamin Graham