Market update for 18/07/2012
Nifty hourly chart
Today's trading session was a choppy one. Nifty has closed at 5192 down by 4 points. Nifty is again and again testing 5190 levels and bouncing back. In hourly chart Nifty has closed below 5190 but managed to bounce back in the last few mins. The important support at 5190 will eventually become weak . Wait for a close below 5190 to initiate new short positions.
Nifty Daily chart
There is no significant change in daily chart. The indications of negative trend like breakout from wedge , Sell indication from MACD , close below 20 DMA has remained the same.Reversal of the trend can happen above 5260. Traders should observe that many index shares are cracking. Bajaj Auto, LT, Tata Mot, large cap IT companies to name a few. It is advisable to avoid positional long position at this point of time.
Chart of the day
Tata Motors
Tata Motors was one of the outperforming stock when Nifty was at 5600 before few months. It is in downtrend from few weeks and now fresh shorting opportunity has appeared. In the above chat you can observe that Tata Motors breached 200 DMA at Rs. 195 on 4/1/2012. Since then it was bullish. Even though retracement happened Tata Motors took support at 200 DMA twice at Rs.220 and Rs.224. From past two trading session it is trading below 200 DMA indicating that this stock has entered bearish phase from short term and medium term point of view. Traders can take short for a target of Rs.215-200 and reversal can happen if it closes above Rs.234.
Open Positions
| Scrip | Type | Qty | Price | CMP | P/L |
| LT 1400 PE | Short | 250 | 22.35 | 18.95 | 850 |
| Tata Mot 230 CE | Short | 1000 | 2.05 | 2.05 | 0 |
Today's Trades
| Scrip | Qty | Buy Price | Sell Price | P/L |
| Bharti 420 CE | 1000 | 2.75 | 7 | -4250 |
| Nifty Fut | 50 | 5250 | 5201 | 2450 |
| Nifty 5300 CE | 50 | 45 | 17 | -1400 |
| Tata Mot 230 CE | 1000 | 2.05 | ||
| Bharti | 150 | 326 | 327 | 150 |
Nifty Medium Term View
| Trend | Up |
| Initiation Date | 12/06/2012 |
| Initiated at | 5116 |
| High since change | 5345 |
| Reversal if closes below | 5120 |
Results
Bajaj Auto , Crisil
Thought for the day
Life is really simple but we insist on making complicated - Confucius
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