Market update for 16/07/2012
Nifty Hourly chart
In the last trading session Nifty has closed at 5227 down by 8 points. It has sustained below 5260 which was earlier support for one more trading session. Nifty reached an intraday high of 5265 but it couldn't sustain above 5260 and eventually closed in red.
From past two trading sessions the range of Nifty is 5218-5265. Intraday rally can be expected only if Nifty can sustain above 5265 or below 5218. The short term target for Nifty is 5200-5190 below this level Nifty can reach 5150.Reversal will be above 5300.
Nifty daily chart
On daily chart Nifty has showed a breakout from raising wedge and in the previous trading session MACD has also indicated a sell . From past two trading sessions Nifty has taken support at 5218 which is 20 DMA breaking this barrier is important for continuation of the down trend. On the other hand if Nifty bounces back it might face resistance at the previous high 5350. This is the region where lower part of the wedge is situated. So the expected range of Nifty is 5200-5350 and if Nifty manages to break any of these levels further continuation of the trend can be expected. Target will be 5100 or 5400.
Chart of the day
Tata Steel
Before two weeks Tata Steel had breached the important resistance at Rs.432. The importance of Rs.432 is very high as it had acted as both support and resistance many number of times in the past. After the breakout at Rs.432 it reached a high of Rs.455.
Tata Steel faced selling pressure at Rs. 455 which is nothing but descending trend line and closed at Rs.425 below 20 and 50 DMA in weekly chart. We can also notice that Tata Steel is in a bearish phase as it is forming lower top and lower bottom. Traders can sell Tata Steel between Rs.425-433 for a target of Rs.405-390. Reversal will be closing above Rs. 456. Time frame 15 days.
Open Positions
| Scrip | Type | Qty | Price | CMP | P/L |
| Bharti 420 CE | Short | 1000 | 2.75 | 2.65 | 100 |
| Nifty Fut | Short | 50 | 5250 | 5240 | 150 |
| Nifty 5300 CE | Long | 50 | 45 | 35 | -500 |
Today's Trades
| Scrip | Qty | Buy Price | Sell Price | P/L |
| Sesa Goa | 100 | 206 | 190 | -1600 |
Nifty medium term trend
| Trend | Up |
| Initiation Date | 12/06/2012 |
| Initiated at | 5116 |
| High since change | 5345 |
| Reversal if closes below | 5120 |
Results : Castrol , Exide Ind , Tata Coffee , South Indian Bank
Thought for the day
All the conceptions born of impatience and aimed at obtaining speedy recovery could only be gross errors. It was necessary to accumulate thousands of small victories to turn them into a great success.
General Vo Nguyen 1911
