Market updates for 05/11/2012

Nifty Daily Chart

As expected Nifty has bounced back from the trend line support around 5600 and made a high 5711 (spot level) on Friday.

 Two important inferences can be drawn from Friday close. One is Nifty has formed a candle stick formation called 'doji' which indicates indecision about the trend. So market makers yet to decide whether to take market to 5800 or 5500. Secondly Nifty has made a gap up open and since this gap has happened with in a trading range it is likely to be filled within a day or two. So the possibility of testing 5630-5600 looks high. Reversal of the trend will be closing above 5720.

Nifty weekly chart

Nifty has continued to consolidate for 5 weeks in a row and still there is no signs of breakout. 5720-5750 are the criticle resistance levels and 5630 is the major support. Breakout from this levels can take Nifty to 5800-5500.

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
LT Nov 1650 PE	Buy	51	26	-6250
LT Nov 1600 PE	Sell	28	12	4000
Tata Motors Fut	Long	271	272.5	1500
Tata Motors 270 PE	Buy	9.5	8.7	-800

Thought for the day

 

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