Market update for 20/07/2012

Nifty hourly chart

Today's trading session is a range bound session. We are still in a tight range of 5190-5260. Nifty spot made a day high of 5258 but was not able to cross 5260. Option buyers should be cautious as there are very few trading sessions left before expiry. Maruti , SBI , Hero Moto , Kotak Bank were the major losers among the index stocks. Maruti is a falling knife don't try to catch it. Most of us try to buy those which are falling continuously assuming that it will bounce back which may not happen immediately.

Long positions in Nifty can be entered if Nifty sustains above 5260 minimum target is 5300 . Stop loss below 5190.(Spot levels).

Chart of the day

JSW Steel

Today metal sector was one of the top gainer. Stocks like JSW steel , Sesa Goa , Tata Steel have performed well. The prices of base metals in international market has increased which is positive for metal stocks.

JSW steel has taken support at 200 DMA as well as an ascending trend line and today stock has bounced back. JSW steel closed at Rs.689.50 up by 2.5%.Stochastics is in oversold region indicating that downside is limited. This stock has the potential to reach Rs.720 .

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
JSW Steel	Long	60	691	689	-120
Bajaj Auto	Long	20	1491	1548	1140
Minifty Aug fut	short	20	5216	5280	-1280

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
LT 1400 CE	250	37	22.35	-3662
Bajaj Auto	20	1491	1559	1360
Tata Mot 230 CE	1000	2.05	2.4	-350

Nifty Medium term trend

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5345
Reversal if closes below	5120

Thought for the day

In order for you to succeed,  your desire for success should be greater  than your fear of failure.