Market updates for 13/09/2012

 

Nifty daily chart

 

 

In daily chart Nifty has closed near very important resistance level which is around 5435. This is a make or break situation. At levels like this the movement of the market will be very high and we have observed this at 5200 level where Nifty made a gap up of 80 points.

 

Nifty has the potential to break this resistance as RSI is not over bought and other index like CNX IT , Bank Nifty are also in up trend. To increase the probability of success wait for breakout above 5450. If Nifty breaks on upside the expected targets are 5500-5600 and reversal will be below 5400.

Chart of the day

 

Tata Motors

 

 

Tata Motors had major resistance at Rs. 250 and today this resistance is breached with good volumes.

According to me the up trend in Tata Mot has just started and the trend ill remain up as long as Tata Mot is above Rs.250. The expected target is Rs.270-275.

 

Most of the traders (including me) think that it is up by 5% it cannot go up further. We should remember that we the retail traders cannot decide the top or bottom of a stock we can only identify the trend and participate in the rally. But we have to exit before others start booking profit so that our money will not be trapped.

 

Nifty medium term trend  

 

Trend	UP
Initiation Date	07/08/2012
Initiated at	5336
High since change	5448
Reversal if closes below	5180

 

 

Open positions

 

Scrip	Type	Price	CMP	P/L
Tata Motors	Long	257	263	6
V guard	Long	410	398	-12

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
Bharti	256	260	4
Bank Nifty Fut	10140	10235	95
Bank Nifty 10100 PE	153	105	-48
JSW Steel	691	690	-1

 

Thought for the day

I can accept failure but I can't accept not trying - Michael Jordan