Market Update for 30/05/2012

Nifty Hourly Chart

Today's trading session was quite and choppy trading session. There was some stock specific movements. SBI and JSW Steel were one of the top gainers. I  am glad that it was recommended at lower level. We are still holding it as more upside can be expected.

Coming back to Nifty hourly chart, the trend of Nifty is still up and 5037 should be achieved easily. Next target will be 5075 which is 200 DMA. If Nifty takes a dip because of profit booking or any other reason we may see the level of 4955 which was previous resistance. So short position can be considered only below 4955 or if someone wants to take a low risk entry short can be considered at 5075. Closing above 200 DMA that is 5075 should be the stop loss for short.

Nifty is overbought in hourly chart, however it can be in  overbought region some more time in a trending market.

Tata Motors Result Highlights

* Net profit for the quarter is Rs.6250 crores vs Rs. 2620 crores.

*Consolidated revenue increased to Rs.50,900 vs Rs.35300 crores up by 44%.

*200% dividend which is Rs.4 was declared.

*Operating profit margin is 14.60% vs 9.60%

*For the entire 2011-12 financial year, Tata Motors consolidated net profit went up by 45.75    percent to Rs 13,516.50 crore from Rs 9,273.62 crore in the previous fiscal.

*The consolidated net income in FY'12 stood at Rs 1,65,654.49 crore compared to Rs 1,22,127.92 crore in FY'11, up 35.64 percent.

*Tata Motors had sold a total of 9,26,353 units of passenger and commercial vehicles during 2011-12, registering a rise of 10.7 percent over the previous fiscal

*Tata Sons Deputy Chairman Cyrus P Mistry was inducted to the Tata Motors board as a Director.

Technically Tata motors had breached the descending trend line and made a high of Rs.283.10. But the breakout in hourly chart was not sustained for long and the stock price closed below the trend line at Rs. 275.75.

The results of Tata Motors is above estimates but we need to see how the market reacts. Tomorrow if it opens above Rs.285 then we can notice major upside rally in the stock price. Closing above Rs.277.50 will indicate a major reversal in the trend. Trailing stop loss will be updated periodically.

At the same time if it opens below Rs.267 then that will be the indication of downtrend. Wait for 10-15 mins after opening  before taking any decision.

Open Positions

Scrip	Type	Qty	Buy Price	CMP	P/L
SBI	Long	10	1907	2120	2130
Axis Bank	Long	46	988	1024	1656
JSW Steel	Long	80	610	621.75	940
Nifty 5000 June CE	Long	100	102.65	110	800
Nifty 4900 June PE	Long	50	98.5	93	-250

* Trailing Stop loss for SBI 2040, Axis Bank Rs.999, JSW Steel Rs.597.00. Expected short term target for Nifty 5075.

 Results

Colgate, DLF,GAIL,Financial Tech,HDIL,Havells, JP Associates, Tata chem, Godrej Ind, RCF and others.

Thought for the day

How to become a successful trader ?

Know more than others but expect less than others. 

Market Update for 29/05/2012

Nifty Hourly Chart

Nifty was trading in a range of 4955-4800 from many trading sessions. In the last trading session Nifty has breached the resistance at 4955 and closed at 4985. The importance of this breakout is high and we can expect more momentum in the market. Now Nifty is expected to reach the levels of 5030-5100 in few trading sessions.

 

Nifty Daily Chart

There are multiple buy signals in daily chart of nifty.

MACD has given a buy signal.

RSI is above 30 and increasing

Parabolic SAR has given buy indication and SL is 4800.

Nifty has come out of the trading range 4800-4950.

Nifty has closed above 20DMA which is at 4882.

So the general trend of the market is up and as long as 4800 holds this correction from 5600 can be considered as a correction in bull market. So do not short Index or individual stocks. As per fibonacci retracement next levels to watch will be 5108,5207. We also need to consider 200 DMA which is at 5075. 

Banks have been an out performer from few years and they will continue to outperform. So keep an eye on SBI,ICICI Bank, AXIS Bank and YES Bank in Banking space. Traders can also consider BHEL, LT and TATA MOTORS. Cairn and Bombay Dyeing also has potential to move up further.

Please trade with stop loss.

Results

HPCL,ABG Shipyard, LITL,Aurobindo Pharma, Sun Pharma, SAIL and others

Open Position

Scrip	Type	Qty	Buy Price	CMP	P/L
SBI	Long	10	1907	2101	1940
Axis Bank	Long	46	988	1029	1640
JSW Steel	Long	80	610	608.5	-120
Nifty 5000 June CE	Long	100	102.65	116.6	1395
Nifty 4900 June PE	Long	50	98.5	89.3	-460

 

Intraday Trades

Scrip	Type	Qty	Buy Price	Sell Price	P/L
JSW Steel	Buy	80	610
Axis Bank	Sell	40		1019	1240
Nifty 5000 PE	Buy	100	83	65	-1800
Nifty 5000 June CE	Buy	100	102.65
Nifty 4900 June PE	Buy	50	98.5

 Thought for the day

Traders who fail to set a goal may live for the thrill associated with wining big but will likely to experience the pain of defeat more often.