Taming Bulls n Bears

Tuesday, 12 June 2012

Market Updates for 13/06/2012

Nifty Hourly Chart

Today's trade was a volatile session and Nifty recovered nearly 100 points from the day low of 5015.

Banking,Auto,Cement and Real Estate were major gainers. Interest rate sensitive sectors like bank,Auto and Real Estate is expected to do well at least till 18th June.

Nifty is making higher top higher bottom formation in hourly chart which is a bullish sign. Every low is ending up in buying which is keeping the trend positive. In today's trade Nifty was unable to reach previous peak at 5124 which can act as intermediate resistance. Once Nifty sustains above 5124 we can expect a target of 5200.

Nifty Daily Chart

In today's trade Nifty has managed to break the resistance of a trend line. Nifty has once again closed above 200 DMA at 5063 which is a bullish sign. Now Nifty is expected to move towards 5200 which is 50% retracement from 5634 to 4788. The reversal might happen if Nifty closes below 5000.

Chart of the day

LIC Housing Finance

LIC Hsg finance is one of the top gainers in today's trading session. It is up by 4% and closed price is Rs.254.35. LIC has come out of the trading range that is Rs.229-246. It has also closed above a trend line and above 50 DMA which is at Rs.251.

Short term traders can buy LIC for a target of Rs.259-267 and above . Stop loss if closes below Rs.240.

Open Position

Scrip	Type	Qty	Price	CMP	P/L
Bata	Long	135	822	819.25	-371.25
Tata Motors	Long	500	237	242.95	2975

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Nifty July Fut	50	5137	5056	-4050
Nifty June 5100 PE	50	87	130	2150
Hindalco	300	120.5	120	-150

Nifty Medium Term View( 1 month)

Nifty Medium Term Trend	Up
Date	12/06/2012
Targets	5180-5280
Reversal if closes above	4880

This view is based on higher time frame and different parameters. Traders should not get confused

with other updates.

HNI Column

Recommended Price	120.5
Recommended Date	06/06/2012
Quantity	2000
Investment	241000
Recommended Price	4.5
Quantity (Lot size 2000)	1 lot
Investment	9000
Total Investment	250000
Upper Breakeven	124.95
Max Loss(Rs per share)	4.95
Maximum Profit	Unlimited
CMP of Hindalco	123.1
CMP of Put Option	2.7
Unrealised P/L	1600

Advice to traders from market master 'Larry William'

Don't expect too much. Consistent success is an illusion. Success is here, but don't think that it's going to happen each and every other day or week or year. It's like a frog in the well, it jumps up four and may be flies down to and jumps up four and flies down three. Spend your money on education before you start trading because you are going to lose several thousands of dollars without knowing what you are doing. You better get educated first. Otherwise you'll lose the money and then figure out you get educated, so you’ve got a double hit.