Market update for 03/07/2012
Nifty Hourly Chart
The
market was range bound and closed flat at 5278 down by 0.30 points!!. Banks,
capital goods and realty were gainers . FMCG were biggest losers of the day.
After
a major rally on Friday’s trading session market is consolidating getting ready
for next move. Overall trend remains up.
Today Nifty has touched 5300 levels and 5400 is the next level to watch for.
This is a buy on dip market and if Nifty comes down to 5200 levels it should be
considers as an opportunity to take long positions in Nifty and high beta
stocks.
Option
buyers have a lesson to learn here. Nifty 5200 CE is down by 6% and 5300 CE is
down by 8%. The value of the option premium tend to diminish if Index or stock
doesn’t move for a given period of time. Traders should understand that this is
not a debate about which is better ( buying option or writing option , buying
option or future) but this is only an observation.
Nifty Daily Chart
Until
Nifty is above 100 DMA that is 5184 no worry for bulls at all. If Nifty closes
below 5184 then it can test 200 DMA at 5080.
Today’s
candle stick pattern is called as ‘Doji’. It is formed on the chart when open
and close are almost equal. Doji convey a sense of indecision between buyers
and sellers. However market will overcome this indecision session sooner or later and
there is every possibility that Nifty will continue towards 5400.
Chart of the day
M&
M was consolidating between the range 680-710 and today it has come out of the
range. But it is unable to cross 200 DMA at Rs.715. If M&M closes above
Rs.715 then the target will be Rs. 735-748 and above. Stop loss below Rs.700.
M&
M was consolidating between the range 680-710 and today it has come out of the
range. But it is unable to cross 200 DMA at Rs.715. If M&M closes above
Rs.715 then the target will be Rs. 735-748 and above. Stop loss below Rs.700.
Open Positions
Scrip
Type
Qty
Price
CMP
P/L
Yes Bank
Long
65
340.5
344.4
253.5
Tata Mot
Long
100
245.5
238
-750
SBIN
Long
40
2185
2181
-160
| Scrip | Type | Qty | Price | CMP | P/L |
| Yes Bank | Long | 65 | 340.5 | 344.4 | 253.5 |
| Tata Mot | Long | 100 | 245.5 | 238 | -750 |
| SBIN | Long | 40 | 2185 | 2181 | -160 |
Today's Trade
| Scrip | Qty | Buy Price | Sell Price | P/L |
| Hero Motoco | 65 | 2127 | 2130 | 195 |
| SBIN | 40 | 2185 | ||
| Jubl Food | 66 | 1184 | 1216 | 2112 |
Nifty Medium Term Trend
| Trend | Up |
| Initiation Date | 12/06/2012 |
| Initiated at | 5116 |
| High since change | 5280 |
| Reversal if closes below | 5020 |
Thought for the day
"Risk
comes from not knowing what you're doing." - Warren Buffett
