Market updates for 03/09/2012

 

Nifty daily chart

 

 

 

On daily chart of Nifty 5350 is acting as a major support. The extension of falling trend line , which is drawn by joining 5630-5350 , is at 5250. It is a situation where the prior resistance will act as support which commonly happens in chart. Also, 50 DMA is around 5350 which is another major support. As it is explained in previous post Nifty will get lot of support between 5250-5200. MACD is still indicating downtrend but still long position can be executed around 5200-5250 levels and short can be considered around 5350.

 

Nifty weekly chart

 

 

 

After reaching a peak 5448 level Nifty has declined to 5250. So in medium term 5250-5440 will act as trading range .

 

What to expect in this week?

 

We may witness a bounce back to 5350-5400. As RSI is in overbought region it may not be possible for Nifty to breach 5440. So the expected dead cat bounce till 5350 may face to selling pressure and Nifty may once again fall into the territory of 5200-5350. As Nifty is expected to consolidate with in a range of 150-200 points option buyers should be cautious.

 

Chart of the day

 

Reliance Industries

 

 

 Reliance Ind had a major rally from Rs.720-820 within 3 weeks and now honey moon seems to be over. Reliance made a breakout from a major resistance and weekly closing was at Rs.817. But this trend line breakout couldn't sustain for long and now it has closed below the trend line. As long as Reliance is below Rs.785 the bias will remain negative and the potential targets in medium term are Rs.750-735.

 

Open Positions

 

Scrip	Type	Price	CMP	P/L
Britannia	Long	486	500	14

 

 

Today's Trades

 

Scrip	Buy Price	Sell Price	P/L
Tata Mot Fut	233	238	5
Tata Mot 240 CE	8.3	6.4	-1.9
CNX IT Fut	6106	6105	1
JSW Steel	698	687	11

 

 

Nifty Medium Term Trend 

 

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5448
Reversal if closes below	5180

 

 

Thought for the day 

 

A person often meets his destiny on the road he took to avoid it.