Market updates for 07/08/2012

Nifty Hourly chart

Nifty made a gap up open of 45 points and managed to sustain at higher levels. It has broken important resistance at 5250 but was unable to breach 5300. Reliance Ind was a big gainer in today's session. It gained nearly 6%.

Important resistance levels for Nifty are 5300-5330 and support is at 5250. The short term trend remains up.

Nifty daily chart

Nifty has reached its important resistance level. Nifty is likely to consolidate in this region since it has made a large move in today's trading session. Unless Nifty breaks 5300 on closing basis we cannot expect further rally in Nifty. MACD and RSI are indicating that Nifty has potential to break 5300. Reliance group , Private sector banks , auto and capital goods sector are supporting the market very well. The trend of other index like Bank Nifty and CNX IT is up. But to increase the probability of profitable trade wait for a sustainable breakout.

Chart of the day

Bank Nifty

Bank Nifty has bounced back from ascending trend line support at 10200. It can face resistance  at 10470. Expected target for Bank Nifty is 10600.

Open Positions 

Scrip	Type	Price	CMP	P/L
SBI	Long	2015	2018	3
Bombay Dyeing	Long	504	528	24
Bank Nifty 10500 CE	Long	214	194	-20

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Bank Nifty 10500 CE	214
Bombay Dyeing	504	524

* Bombay Dyeing partial profit booked

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

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