Market updates for 16/09/2012

 

Nifty daily chart

 

 

Nifty has breached the resistance at 5450 and closed at 5570 up by 134 points. In the above chart you can see that at 5600 there are multiple peaks which is the next resistance.  Most of the traders might have missed the rally but we will get another opportunity to take long if Nifty closes above 5630 which is the previous peak.

Nifty weekly charts

 

Trend Line Breakout

 

 

 

Fibonacci Levels

 

 

 

Nifty has breached the trend line resistance in weekly chart which is a bullish sign. If we draw Fibonacci retracement from 5636 to 4770 in weekly chart we can observe that Nifty has closed above 5451 which is 78.6% retracment. Next target is  5636 which completes 100% retracement. Once Nifty closes above 5636 it can reach 5830 which is 123.6% and then 5960 which is 138.2%.

 

Traders should  remember that  these levels will not be reached in a day or two. It may take months as we cannot expect  Nifty to rally 100 points everyday .It will create many more peaks and valleys before reaching high and this trend will fail if Nifty closes below the trend line support at 5435.

 

Chart of the day

 

Tata Motors

 

 

 

Buy on Tata Motors was initiated at Rs.257 when it breached the resistance at Rs.250. On Friday we have booked partial profit at Rs.269 . Continuation of the rally is expected. 

 

 

Nifty medium term trend 

 

Trend	UP
Initiation Date	07/08/2012
Initiated at	5336
High since change	5586
Reversal if closes below	5320

 

 

Open positions

 

Scrip	Type	Price	CMP	P/L
Tata Motors	Long	257	263	6
Hero Motoco	Long	1825	1844	19
Hero Motoco 1800 PE	Long	22	17.3	-4.7

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
V guard	410	396	-14
Tata Mot	257	269	12

 

 

Intraday Trades

 

Scrip	Buy Price	Sell Price	P/L
Axis Bank Fut	993	1007	14

 

Thought for the day

 

We cannot solve our problems with the same thinking we used when we created them - Albert Einstein