Market updates for 25/09/2012

 

Nifty daily chart

 

 

In today's trading session Nifty has closed at 5669 down by 21 points. After a major rally of 130+ points Nifty has started consolidating. Long position in Nifty can be held as long as it is above 5630. RSI of Nifty and other Index stocks has entered overbought region and also many index shares have reached major resistance levels. There is a  possibility of Nifty reaching 5800 but traders who have entered long at lower levels should consider booking partial profit and sit with cash.

 

Today few traders were asking me about shorting opportunity in BHEL and United Spirits. As I have observed there are many retail traders who short the top gainers and buy top losers. In fact this is one of the popular method of trading. A company rallying 5 % up is an indication of strength and on the other hand if a company has corrected by 5% in a day it is a sign of weakness. Strength should be bought and weakness should be sold. Trading against the direction is injurious to health and wealth think about it.

 

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 Sept Fut	Long	5705	5682	-23
Nifty 5700 Sept PE	Long	45	45.5	0.5

 

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
SBI Sept Fut	2220	2239	19
SBI Sept 2200 Put	31	21	-10

 

 

Thought for the day

A man is not hurt so much by what happens , as by his opinion of what happens.