Market update for 02/08/2012

Nifty hourly chart

Nifty has continued uptrend by closing at 5240 up by 11 points. Since Nifty has recovered from 5050 levels with in 2-3 trading sessions the momentum has reduced .

In the hourly chart you can see that Nifty has formed raising wedge formation and the trading range is reducing. Nifty can breakout of the range in 1 or 2 trading sessions and the possibility of upward breakout is more than lower breakout. Short term targets are 5258-5300 and reversal can happen if Nifty sustains below 5220.

Nifty daily chart

My view about  Nifty daily chart will remain  same. 5300 could be the peak and Nifty may start falling from 5300. Traders can short Nifty at 5300 levels. If Nifty closes above 5300 book loss and exit the position.

Chart of the day

Zinc

Daily chart of Zinc is a very interesting one. It explains the importance of trend lines from point of view of executing low risk entries.

Zinc is facing strong resistance at Rs..104 levels. It has major support at Rs.101.80. If this support is breached then we can expect a target of Rs.99. So wait for close below Rs.101.8 and take short stop loss should closing above Rs.102. 

Open Positions

Scrip	Type	Price	CMP	P/L
SBI	Long	2015	2033	18
Rel Infra	Long	507	509	2

 

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Tata Steel	406	408	2
Nifty 5300 CE	53	63	10
Rel Infra	507
*Tata Steel Trailing SL triggered

Nifty Medium Term Trend

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

 

Thought for the day 

Be strong NOW because things will get better.It may be stormy now , but it can't rain forever.