Market update for 06/08/2012

 

Nifty hourly chart

On Friday Nifty made a gap down open but took support at 50 HMA which is at 5170. Nifty shut shop at 5215 down by 12 points.  It is still in the narrow trading range of 5160-5250.If Nifty breaks above 5250 then the target is 5300. 

 

Nifty Daily Chart

From past 4 trading sessions Nifty is consolidating. 5160-5130 is very important support levels for Nifty and unless these levels are broken sustainable downtrend cannot be expected. MACD on daily chart is indicating  buy and 5300 looks like an achievable target. If Nifty reaches 5300 don't be in a state of euphoria but book partial profit as it is a strong resistance level. You can re enter above 5300 and expected targets are 5350-5400.

Nifty Weekly Chart

Last week Nifty tested 5085 which is 50WMA and bounced back. This trend is likely to continue till 5300.

Chart of the day

Bombay Dyeing

Bombay Dyeing was in down trend from past one month. It made a low of Rs. 478 and bounced back to Rs.506. It has managed to sustain above the descending channel and now this channel is acting as support.On Friday is made a low of Rs.494 which is nothing but upper part of the channel. This company also has strong support at Rs. 490 . The  correction seems to be over and now it is expected to start a new uptrend.

Open Positions

Scrip	Type	Price	CMP	P/L
SBI	Long	2015	2005	-10
Bombay Dyeing	Long	504	500	-4

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Tata Mot 220 PE	7.5	9.5	2
Bombay Dyeing	504
Rel Infra	506	504	-2

Nifty Medium Term Trend

Trend	Down
Initiation Date	26/07/2012
Initiated at	5043
Low since change	5043
Reversal if closes above	5285

Thought for the day

Trading isn’t love. Stocks don’t love you back. They don’t even know you own them. Falling in love with a stock may not hurt you; it may kill you. That’s why you have stops or other forms of risk control – such as diversification, asset allocation, options, and hedging.