Market updates for 1/11/2012

 

Nifty daily chart

 

 

In today's trading session Nifty has made a small recovery from previous days close at 5597 and closed at 5619 up by 21 points. From now on previous support at 5635 should act as resistance. So a long as Nifty is below this level short positions can be held.

 

In daily chart Nifty has closed marginally above trend line support , we can expect continuation of down trend only if Nifty sustains below this trend line. RSI is indicating that downside is limited so 5500-5550 could be the bottom of this down trend.

 

Nifty monthly chart

 

 

 

Today is the end of October month so here is the analysis of monthly chart of Nifty.

 

In the month of September Nifty made a rally of around 500 points (5215-5735) and closed above the previous peak which is 5633. But this month it has closed at 5619 which is below previous peak. Apparently this look a false breakout and possibility of testing ascending trend line (blue colour arrow mark) seems to be high. Overall direction looks bullish and once Nifty tests trend line support another cycle of uptrend is likely to happen and the potential target could be up to 5950. 

 

Nifty medium term trend

 

Trend	UP
Initiation Date	08-07-12
Initiated at	5336
High since change	5815
Reversal if closes below	5580

 

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
Rel Capital Fut	387	419	32
Rel Capital 420 CE	20	7	-13

 

 

Open Positions

 

Scrip	Type	Price	CMP	P/L
Nifty Nov Fut	Short	5705	5643	62
Nifty 5700 Nov CE	Long	117	57	-60

 

 

Thought for the day

 

No man has ever made a great discovery without the exercise of the imagination.