Market updates for 24/09/2012

 

Nifty daily chart

 

 

 

Nifty has made a huge breakout from the resistance at 5630. On Friday it gained whopping 136 points and closed at 5690. Nifty has been forming higher high and higher low pattern and any fall towards towards 5630 should be considered as buying opportunity. Expected short term target is 5800. As long as Nifty is above 5630 don't dare to short Index/stock but buy on dips.

 

Nifty weekly charts

 

 

The breakout from the descending trend line has proved to be extreme bullish sign and Nifty has gained significant 120 points compared to last week's close. Nifty has closed above 5630 on weekly basis which is 100 % retracement. Now it expected to move towards  5840-5965 which are 123.6 % and 138.2% retracement respectively.  Since market is in a perfect trend the resistance levels should be used to book partial profit but should not be used to take short positions.

Chart of the day

 

 

 

SBI was in a down trend from many months. In last week it has indicated a major breakout by closing above trend line resistance at 2125. MACD is indicating 'buy' and continuation of uptrend is expected.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	07/08/2012
Initiated at	5336
High since change	5720
Reversal if closes below	5485

 

Open positions

 

Scrip	Type	Price	CMP	P/L
Nifty SeptFut	Long	5705	5710	5
SBI Sept Fut	Long	2220	2217	-3
SBI Sept 2200 Put	Long	31	31.5	0.5

 

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
DLF Fut	231.7	236	4.3
DLF 230 PE	6.7	3.9	-2.8

 

 

Thought for the day

 

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