Market update for 29/06/2012

Nifty hourly chart

The markets closed with moderate gains today with defensive sectors like FMCG and consumer durables being the biggest gainers. Banking and oil & gas lost significantly while realty and capital goods closed with moderate declines. Nifty closed at 5149 up by 7 points.

This consolidation is happening from past few trading session. Let us not blame the market because it is always right , it is traders like me and you  will be wrong. Usually consolidation happens after a major rally or if market is waiting for some major event to happen. Explosive moves will be followed be consolidation and consolidation will be followed be explosive moves.So we can expect a major move in the market  . The possibility of breakout on upside is more than the downside.

Nifty Daily Chart

There is no significant change in daily chart . Nifty is facing resistance at 5200 levels which is 100 DMA . Nifty has sustained above 5070 which is 200 DMA. We need a close above 100 DMA to re initiate long in Nifty.

 

Chart of the day

 

Tata Steel

Tata Steel is consolidating between the range 432-405. Now Tata Steel is at upper part of the range . IF Tata Steel breaks Rs.432 on closing basis then we can expect a target of Rs.444-457. On the other hand IF it breaks Rs.405 then the target is Rs.390. So trade accordingly.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Yes Bank	Long	65	340.5	331.6	-578.5
Tata Mot	Long	100	245.5	240.35	-515
SBIN 2100 July CE	Short	125	65	65	0

Today's Trade 

Scrip	Qty	Buy Price	Sell Price	P/L
Hero Motoco	65	2053	2095	2730
Bank Nifty fut	25	9975	10020	1125
Bank Nifty 9900 Put	25	260	210	-1250

 

Nifty Medium Term View 

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5191
Reversal if closes below	4920

Thought for the day 

Speculation is dealing with the uncertain conditions of the unknown future. Every human action is a speculation in that it is embedded in the flux of time. –Ludwig von Mises

I never hesitate to tell a man that I am bullish or bearish. But I do not tell people to buy or sell any particular stock. In a bear market all stocks go down and in a bull market they go up. I don’t mean of course that in a bear market caused by a war, ammunition shares do not go up. I speak in a general sense. But the average man doesn’t wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think. It is too much bother to have to count the money that he picks up from the ground. —Edwin LeFevre