Market update for 15/06/2012
Nifty Hourly Chart
Market lost significantly today because of higher inflation. May WPI inflation has come in at 7.55% versus 7.23% (MoM). Reality,Capital goods , Banking and Auto mobiles were worst performers in todays session. Nifty has closed at 5054 down by 66 points.
In hourly chart Nifty had formed a formation called 'raising wedge'. This formation can be either continuation or reversal formation. This time it has become a reversal formation. Today nifty sustained below the wedge indicating the weakness in the short term trend. Now Nifty is expected to test 5020 .
Nifty Daily Chart
Nifty has again closed below 200 DMA at 5063. Technically , if index or stock closes above or below 200 DMA we can expect a significant rally. But now Nifty is frequently changing its course . We may get clear direction by Tuesday.
5140 is acting as resistance and 5000 is the support. Nifty is facing too much of resistance at higher levels. It can reach 5200 and above only if there is a major news flow in the form of RBI rate cut or any other news from abroad. Positional shorts can be considered if Nifty closes below 5000.
Chart of the day
Tata Motors
Tata Motors has been a major loser in past 2 trading sessions. The market price of Tata Motors has decreased by nearly 7%. In one of the earlier trading session it had tested 200 DMA at Rs.220 and bounced back to Rs.243. Now it is likely to test 200 DMA at Rs.224 again. Rs.224 is the last hope for Tata Motors. If it closes below 224 then we may see the levels of Rs.215-200 in short term.Reversal above Rs.230.
Nifty Medium Term View
| Nifty Medium Term Trend | Up |
| Date | 12/06/2012 |
| Initiated at | 5116 |
| Reversal if closes above | 4880 |
This view is based on different time frames and parameters. Traders should not get confused with other updates.
Open Position
| Scrip | Type | Qty | Price | CMP | P/L |
| Bank Nifty Fut | Short | 25 | 9830 | 9820 | 250 |
| Bank Nifty 9900 CE | Long | 25 | 215 | 208 | -150 |
Today's Trade
| Scrip | Qty | Buy Price | Sell Price | P/L |
| Tata Motors | 500 | 237 | 235 | -1000 |
| Bata | 135 | 822 | 830 | 1080 |
| Nifty 5000 PE | 100 | 63 | 75 | 1200 |
| Nifty 5000 PE | 50 | 53 | 56 | 150 |
HNI Column
We had recommended Hindalco at Rs.120.50. So far Hindalco has underperformed the index and it is also likely to continue the same. So we recommend exit call on Hindalco.
Thought for the day
Fear is a habit ; so is self pity , defeat , despair , hopelessness and resignation. We can eliminate all of these negative habits with two simple resolves : I CAN and I WILL.
