Market update for 18/09/2012

 

Nifty daily chart

 

 

 

 

Nifty has continued uptrend by closing above 5600.Now it may start consolidating in a range as it has rallied more than 150 points in a very short time of two trading sessions. Since RSI is overbought region we may also see a short term dip. But as long as Nifty is above 5530 bulls will dominate.

 

Chart of the day

 

Tata Motors

 

 

 

Today we have booked profit in Tata Mot at Rs.280 as it has filled the gaps between Rs.259-275 and 277-286. RSI is overbought we will use the dip to re enter.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	07/08/2012
Initiated at	5336
High since change	5652
Reversal if closes below	5320

 

The medium term trend of Nifty is up since 7/08/2012. The hardcore followers of news and so called global cues should remember that most of us (including me) don't know how to analyse news.But the problem is we think that we know when the reality is we don't know. So it is better stick to a time tested , proven mathematical tools to decide entry and exit point.

 

 Is it 100% perfect?

 

It is repeatedly taught to us from school days that anything less than 90% is equal to failure. But a trader require 1:1 risk reward ratio , 60% accuracy, belief in the system even when it is not giving profit (because it is just a small phase) to earn a fortune in market. The average life span of an impatient trader is 6 months!!.

 

Open Positions

 

Scrip	Type	Price	CMP	P/L
Infy Fut	Short	2566	2567	-1

 

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
Tata Motors	257	280	23
Hero Motoco Fut	1825	1870	45
Hero Motoco 1800 PE	22	10	-12

 

 

Today's Trade

 

Scrip	Buy Price	Sell Price	P/L
LIC Hsg Fut	261.4	264.6	3.2