Market update for 20/07/2012
Nifty hourly chart
Today's trading session is a range bound session. We are still in a tight range of 5190-5260. Nifty spot made a day high of 5258 but was not able to cross 5260. Option buyers should be cautious as there are very few trading sessions left before expiry. Maruti , SBI , Hero Moto , Kotak Bank were the major losers among the index stocks. Maruti is a falling knife don't try to catch it. Most of us try to buy those which are falling continuously assuming that it will bounce back which may not happen immediately.
Long positions in Nifty can be entered if Nifty sustains above 5260 minimum target is 5300 . Stop loss below 5190.(Spot levels).
Chart of the day
JSW Steel
Today metal sector was one of the top gainer. Stocks like JSW steel , Sesa Goa , Tata Steel have performed well. The prices of base metals in international market has increased which is positive for metal stocks.
JSW steel has taken support at 200 DMA as well as an ascending trend line and today stock has bounced back. JSW steel closed at Rs.689.50 up by 2.5%.Stochastics is in oversold region indicating that downside is limited. This stock has the potential to reach Rs.720 .
Open Positions
| Scrip | Type | Qty | Price | CMP | P/L |
| JSW Steel | Long | 60 | 691 | 689 | -120 |
| Bajaj Auto | Long | 20 | 1491 | 1548 | 1140 |
| Minifty Aug fut | short | 20 | 5216 | 5280 | -1280 |
Today's Trade
| Scrip | Qty | Buy Price | Sell Price | P/L |
| LT 1400 CE | 250 | 37 | 22.35 | -3662 |
| Bajaj Auto | 20 | 1491 | 1559 | 1360 |
| Tata Mot 230 CE | 1000 | 2.05 | 2.4 | -350 |
Nifty Medium term trend
| Trend | Up |
| Initiation Date | 12/06/2012 |
| Initiated at | 5116 |
| High since change | 5345 |
| Reversal if closes below | 5120 |
Thought for the day
In order for you to succeed, your desire for success should be greater than your fear of failure.
