Market update for 04/07/2012

Nifty hourly chart

There is no significant changes in the hourly chart. Nifty is consolidating again. New long position should be considered only if Nifty sustains above 5318 and stop loss will be below 5262. The expected target 5400 is achievable. Reversal of the trend is below 5200.

Nifty daily chart

Nifty has again closed with insignificant gains. Currently Nifty is facing resistance at 5300 levels which is 61.8% retracement. Overall trend remains bullish. However , traders should trade with strict stop loss , periodical profit booking is a must. If you have many positions it is advisable to buy very few at the money put option to hedge the positions. Whenever market  is at higher levels we all expect it to rally further and vice versa. But we have to take precaution.

Till now capital goods , Banks and Auto mobile sectors were leading the rally. But now metals and telecom are in centre of the stage. So watch out Hindalco , JSW steel and Bharti.

Chart of the day

INR has started appreciating against  USD and there are multiple indications that this will continue further. Now the target for INR is 53.90-52.90-52 and reversal is above 55.25.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Yes Bank	Long	65	340.5	350.6	656.5
Tata Mot	Long	100	245.5	238	237.5
SBIN	Long	40	2185	2187.5	100
Dr Reddy	Long	60	1667	1668.5	90
Nifty 5200 PE	Long	50	51	50.5	-25

Trailing SL for Yes Bank is at Rs.343.00

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Dr Reddy	60	1667
Nifty 5200 PE	50	51

Nifty Medium Trend

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5287
Reversal if closes below	5020

Thought for the day

"He who is not contented with what he has will not be contented with what he would like to have " - Socrates