Market update for 06/06/2012
Nifty Hourly Chart
Today's trading session was volatile, but Nifty has closed at 4863 up by 15 points. Capital goods,Banks and Automobile sector are leading the pull back in market. SBI,HDFC Bank,LT,BHEL,Maruti Suzuki, and M&M are some of the top gainers in Nifty.
Nifty has managed to breach another trend line in hourly chart. Even though Nifty came down in the afternoon you can see in the chart that Nifty has taken support right at trend line. So the trend line which was acting as resistance is now acting as support.
The expected target 4955 will remain the same and reversal is closing below 4800. Since Nifty is trading in a narrow range short strangle is contributing profit. The prices of both 4800 put and 5000 call are down by 1% and 3% respectively.
Nifty Daily Chart
There is no significant change in daily chart of Nifty except that nifty is marginally up compared to previous day's close. MACD has not indicated sell so far and 4800 is still a demand zone. Many trades are asking 'when Nifty will come out of the range?'. Frankly speaking I don't have an answer for this question.
Bank Nifty Daily Chart
Bank Nifty is up by 1% today. Technically Bank Nifty has closed above 20 DMA which is at 9366. It may face resistance at 200DMA at 9560. As long as Bank Nifty stays above 9200 the trend is expected to be positive. The expected target for bank Nifty is 9600 and above.
The numbers which are indicated above are spot Nifty/Bank Nifty numbers.
Nifty Short Term View
| Nifty Short Term Trend | Down |
| 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 | 50.25 | 1430's |
| Nifty 4800 PE | Short | 50 | 86.6 | 101.5 | -745 |
| BPCL | Long | 120 | 708.5 | 704.3 | -504 |
| Bank Nifty Fut | Long | 25 | 9428 | 9398 | -750 |
| Bank Nifty 9400 PE | Long | 25 | 269 | 285 | 400 |
Today Trades
| Scrip | Type | Qty | Buy Price | Sell Price | P/L |
| Bank Nifty Fut | Long | 25 | 9428 | ||
| Bank Nifty 9400 PE | Long | 25 | 269 |
Thought For The Day
I believe that anyone who is intelligent, conscientious, and willing to put in the necessary time can be successful on Wall Street. As long as they realise the market is a business like any other business, they have a good chance to prosper - Jesse Livermore
