Market Update for 05/06/2012
Nifty Hourly Chart
In today's trading session Nifty tested the previous bottom 4788 and bounced back to 4848. Today's low was 4770 which is near to 78.6% retracement which is around 4760. In the first hour of trade Nifty closed below 4788 on hourly basis trapping the bears and gave a sharp bounce back. So we are again in the consolidation range which is 4800-4950.
In coming trading session Nifty may face a minor resistance at 4860-70 levels and once this range is crossed we can expect Nifty to reach 4955 again.
Nifty Daily Chart
Nifty has tested 4800 levels many times before and also has managed to give a sharp bounce back. Traders should remember that support is not a precise point (for example 4800) it is a region (4760-4800). Moreover descending trend line support is clearly visible in daily chart. So based on the above observation I can say that Nifty may hold 4800 levels . If Nifty closes below 4760 then we can expect Nifty to reach 4600 levels.
BPCL Daily Chart
BPCL was one of the top gainers in today's trading session. It was up by 3%. So far the secondary trend of the BPCL was down and now 50 DMA as well as ascending trend line is supporting BPCL. Today we have recommended BPCL to subscribers at the rate of Rs.708.50 and the expected target is 725-735 and above.
Nifty Short Term View (1 to 2 weeks)
Nifty Short Term Trend : Down
Nifty Short Term Targets : 4780-4680
Reversal if closes above : 5090
*If you are trading based on above information trade with right hedging strategy and also trade with strict stop loss.
Open Positions
| Scrip | Type | Qty | Price | CMP | P/L |
| Nifty 5000 CE | Short | 50 | 78.85 | 52.75 | 1305 |
| Nifty 4800 PE | Short | 50 | 86.6 | 98 | -570 |
| BPCL | Long | 120 | 708.5 | 716.5 | 960 |
Today's Trades
| Scrip | Type | Qty | Buy Price | Sell Price | P/L |
| SBI Fut | Long | 125 | 1990 | 2037 | 5875 |
Short position was executed yesterday at Rs.2037.
Thought for the day
Holding on to anger is like grasping a hot coal with the intent
of throwing it at someone else; you are the one who gets burned - Buddha
