Market updates for 12/10/2012

 

Nifty daily chart

 

 

Nifty has made a sharp bounce back from the support at 5630. 20 DMA is at 5650 levels and until these two levels are broken further fall cannot be expected. On the higher side 5720 is the resistance. Sustainable uptrend can be expected above 5780. Above 5780 target will be 5815-5850-5950. On the other hand below 5630 target will be 5580-5500. The short term trend will remain down.

 

Important events :  Quarterly result of Infosys , HDFC Bank, IIP data

 

Chart of the day

 Tomorrow Infy and HDFC bank are announcing quarterly result. Lets look into the chart pattern to identify the best entry points. Traders should note that the entry points mentioned here are not for intraday trading.

 

Infy

 

 

 

Last three quarterly result of Infy was below expectation and on the day of result the stock corrected by nearly 10%. Technically Infy is weak as it is trading below 200 DMA an also it has breached important channel support. Immediate support is at 2460 and resistance is 2647. Breakout from this range can take Infy to 2737 or 2330. Tomorrow Infy will be highly volatile so day traders should be highly cautious.

 

HDFC Bank

 

 

HDFC Bank is facing resistance at Rs.638 and major support is at Rs.600. Long position can be considered if it closes above Rs.638 for a target of Rs.675 and below Rs.600 target will be Rs. 580-560.

 

Nifty medium term trend

 

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

 

 

Open Positions

 

Scrip	Type	Price	CMP	P/L
Bank Nifty Fut	Short	11422	11549	-127
Bank Nifty 11400 PE	Long	204	280	76

 

 

Thought for the day

 

 He who ask a question is a fool for a minute he who doesn't ask is a fool for ever.