Market update for 28/06/2012

Nifty hourly chart

Nifty is still consolidating in the trading range of 5093-5191. The expiry is expected to happen around 5100-5191 and we may not notice any major changes . The expected breakout can happen in the next  FnO series.

I repeat the same estimates that 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

 

In EOD chart I do not see major weakness. Nifty is consolidating from a week and option buyers might have lost money because of time decay. Nifty is trading between 200 and 100 DMA which are at 5200 and 5075 respectively. The short term reversal will be closing below 5020 and medium term reversal will be closing below 4915. This consolidation can be considered as continuation pattern if Nifty closes above 5200.

Chart of the day

Bank Nifty is forming higher bottoms but the peak is at 10200-10100 levels. If Bank Nifty manages to cross the intermediary hurdle at 10100 levels we expect rally upto 10300-10400. Reversal will be closing below 9900.

 

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Yes Bank	Long	65	340.5	334.5	-390
Tata Mot	Long	100	245.5	239.5	-600
Hero Mot	Long	65	2053	2054	65
Bank Nifty fut	Long	25	9975	10004	725
Bank Nifty 9900 Put	Long	25	260	230	-750

Today's Trade 

Scrip	Qty	Buy Price	Sell Price	P/L
Nifty 5100 PE	100	33	8	-2500
Hero Motoco	65	2053

Nifty medium term trend

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

 

Thought for the day

" The investor's/trader's chief problem - and even his worst enemy - is likely to be himself "