Market update for 09/07/2012

Nifty Hourly Chart

In this week market was extremely flat. Nifty is stuck in a range of 56 points that is between 5262-5318. Sectors like Telecom , Metals and Banks did well in this week.  Companies like Idea , Dish TV , United Spirits were the top gainers. Hexaware , Asian Paints and Wockhardt Ltd were the major Losers .

The trend of the Nifty is still up.If Nifty sustains below 5260 then we can see the levels of 5200. On the upside above 5320 target will be 5350-5400. One major event in this week is Infosys Q1 result which is on 12 th July.

Nifty Weekly Chart

On weekly chart Nifty has closed above 5300 which is 61.8 % retracement from the fall from 5626. Next target will be around 5400. Around 5400 there are multiple resistance like 100 WMA, 78.6% retracement levels and descending trend line drawn from 6330-5626. We can carry long position till 5400. My personal view is that 5400 could be the peak of this rally. Reversal of the trend will be closing below 5200.

Top pick of the week

 

Reliance Capital

Reliance Capital was one of the top gainers in last one month. Its upward trend started from Rs.298 and recently it made a high of Rs. 386. In the above chart you can see that is has reached a major resistance level which is at Rs. 375. Even though Rel Cap made a high of Rs.386 it couldn't sustain above this resistance level and weekly close is at Rs.374.50. Stochastics on weekly chart is overbought so the possibility of Rel Cap correcting is high. Traders can short Rel Cap around Rs370-375 for a target of Rs.350 and below. Stop loss will be  weekly closing above Rs.386. 

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Sesa Goa	Long	100	206	198	-800
Nifty 5200 PE	Long	50	51	34.3	-835
Bank Nifty fut	Long	25	10600	10650	1250
Bank Nifty 10600 PE	Long	25	229	186	-1075
M&M	Long	50	725	732	350

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Bharti	200	321.6	322	80

 

Nifty medium term trend

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5327
Reversal if closes below	5120

Thought for the day

Employ your time in improving yourself by others men writing , so that you will gain easily for what others have laboured hard for - Socrates.