Market update for 25/07/2012

Nifty hourly chart

 

                                                     Click on the chart to enlarge

In the previous post it was mentioned that Nifty has taken support at sloping trend line which is at 5107. Today's trading session was choppy and Nifty has bounce back from support levels.Unless Nifty breaks 5100 we cannot expect further fall. Now the trading range is 5100-5191.

 

Nifty daily chart

Nifty has managed to hold 200 DMA. If we consider the upward rally from 4769 to 5348 then 38.2% retracement is at 5127 and today Nifty has closed at 5128. So the decline in Nifty is temporarily halted at 38.2%. Nifty will get major support till 5100. Below 5100 the targets are 5058-4990.

Today's candle stick pattern is called 'doji'. Doji indicates the indecision in market - that means lack of clarity of direction.

The overall direction of the market will remain down. Initiate new short positions if Nifty closes below 5100.

Chart of the day

Copper

Copper was trading in a range and the range was 422-432. Yesterday this range is broken and copper had closed at 419.95. The medium term trend of copper will be down and it will face strong resistance around Rs.424. Positional traders can short copper and reversal will be closing above Rs.424.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Glaxo	Long	20	2082	2110	560

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Bank Nifty Aug	25	10531	10347	4600
Bank Nifty Aug 10500 CE	25	225	211	-350
Minifty Aug fut	20	5216	5149	1340
Maruti	40	1197	1205	320

Nifty Medium term trend

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5345
Reversal if closes below	5090

 

Thought for the day

Condemn none : if you can stretch out a helping hand , do so . If you cannot , fold your hands, bless your brothers and let them go in their own way. -Swami Vivekananda