Market updates for 22/10/2012

 

Nifty daily chart

 

Nifty has once again closed below 5720 and this time closing was at 5684. I don't know when Nifty is going to come out of the range but if the breakout happens on downside it is likely to take at least an intermediary  trend line support at 5600 (indicated in black colour). The range of consolidation is around 90 points so possible target after breakout will be either 5540 or 5810.

 

Nifty weekly chart

 

 

Weekly chart of Nifty clearly indicates the resistance at 5740 which was not beached on closing basis. Major support is around 5500 and this level can change as the time progress. We cannot expect major upside rally unless Nifty closes above 5740 on weekly basis. RSI is overbought from many weeks and there is a chance of short term minor correction.

 

Currently Nifty has taken support around 5630 which is 23.6% retracement of the rally from 5034-5820. Close below this level can take Nifty to 5514-5420 which are 38.2% and 50% respectively.

 

Chart of the day

 

Jet Airways

 

 

Jet Airways has made a breakout from triangle formation.Now the first target is Rs.342.

 

 

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
Nifty Nov Fut	Short	5705	5716	-11
Nifty 5700 Nov CE	Long	117	112	-5
Yes Bank Fut	Short	387	385	2

 

 

Positions squared off

 

Scrip	Buy Price	Sell Price	P/L
Nifty 5700 Oct CE	48	49	1

 

 

 

Thought for the day

 

We are what we repeatedly do. Excellence , then  , is not an act , but habit.