Market update for 23/08/2012

Nifty daily chart

Today's trading session was a choppy session. Nifty reached a day high of  5333 and closed at 5212 down by 8 points. We were expecting a target of 5440 and it is almost reached.

 

What next ?

 

There are some interesting observation in daily and weekly chart of Nifty. 5440 is a region where there are multiple resistance. First resistance is a  trend line drawn by joining 5940 - 5620 and second resistance is formed at 5440 which is 78.6% retracement once we draw a Fibonacci retracement from 5625 to 4770. So far Nifty has breached many resistances such as 5300-5350-5380 but can it break 5440 ??.If it breaks then the target is 5500 - 5600. Traders should note that this is not a ' sell Nifty fut ' recommendation but it is a caution that market cannot rally forever , so , we need to start booking profit/loss and re enter once the breakout happens.

Nifty weekly chart

 

 

 

The structure of Nifty is clearly visible in weekly chart. RSI has reached overbought region in weekly chart as well. But in a perfect trending market RSI can remain overbought for longer than expected period.

 

Chart of the day

 

Dow Jones

 

 

 

Dow Jones Industrial Average (DJIA) has reached 13300 which is the important resistance level. It has reached this level for the fourth time in past 6 months and hence the importance of this level is very high. Dow Jones may consolidate at this level and if it doesn't break 13300 then it may come down to 12950 in medium term.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5433
Reversal if closes below	5180

 

 

Open Positions

 

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	510	-12

 

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
LT	1447	1459	12
REC	214.8	209.5	-5.3

 

 

Thought for the day

 

If you have something to do that is worthwhile doing , don't talk about it  but do it. After you have done it your friends and enemies will talk about it.