Market update for 27/07/2012

 

Nifty hourly chart

It was a frightening day for bulls. Nifty has breached the 'great wall of china' which is nothing but 200 DMA. From past 3 trading sessions 200 DMA was defended but today break out has happened.

On hourly chart Nifty is holding 5042 which is a low of one and half months. Nifty may bounce from this level , but , it is unlikely to breach 5100. If Nifty reaches 5090-5100 levels short can be executed and the risk involved is very less. Stop loss above 5145. ( Spot levels)

Nifty daily chart

Nifty has breached 200 DMA. MACD is still down and as per fibonacci next targets are 4990-4890. RSI has reached oversold region but in a trending market it can remain oversold for longer than expected time.Those who are holding short positions can book partial profit at 4990-5000 levels.

Nifty Weekly chart

Nifty is forming a triangle in daily and weekly chart. Nifty is below 50 WMA which is a 5085. Tomorrow is the last trading session of the week and if Nifty closes below 5085 then it can easily achieve 5000-4900 levels. 4900 could be the bottom of the triangel and from 4900 reversal may happen. Tomorrow's trading session is very important.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Bank Nifty 10100 PE	Long	25	249	240	-225
Nifty Aug fut	short	50	5126	5083	2150
Nifty  5200 CE	Long	50	72	50	-1100

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Glaxo	20	2082	2171	1780
Bank Nifty 10100 PE	25	249	240	-225

Nifty Medium term view

Trend	Down
Initiation Date	26/07/2012
Initiated at	5043
Low since change	5043
Reversal if closes above	5283

Thought for the day

No worst enemy can harm you as much as your own ungaurded thoughts - Buddha.