Market updates for 10/12/2012

 

Nifty weekly chart

 

In the previous posts it was mentioned that Nifty is likely to reach 5950 . Now it has completed 78.6% retracement. Earlier Nifty has made a peak at 5950 in April 2011 which can act as intermediary resistance. RSI is in over bought position and there could be possibility of a short term correction. If market corrects, then in worst case scenario, it may come down to 5700 which is trend line support. If Nifty sustains above 5940 then it will move towards 6000-6300.

 

Overall direction of Nifty from short term and medium term perspective remains bullish. Short term reversal is below 5780 and medium term reversal is below 5685.

Chart of the day

 

BHEL

 

 

 

BHEL has made multiple peaks at 240 and it has breached this level and sustained for 2 trading sessions. Also it is trading above 50 MA and momentum indicator is showing uptrend. We have initiated bullish strategy at Rs.241.

 

Lead

 

 

 

Lead faced resistance at Rs.123.2 and started falling. It has closed below Rs.121 which is 20 DMA and MACD is indicating sell. Based on above observation we have created short position at Rs.120. The reversal of the trend will be closing above Rs.123.20.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	5950
Reversal if closes below	5680

 

 

Thought for the day

 

Men occasionally stumble over the truth , but most of them pick themselves up and hurry off as if nothing has happened.