Market update for 24/07/2012

Nifty hourly chart

Nifty has showed a large movement after a long time of consolidation. Nifty has closed at 5117 down by 87 points. It has closed below 5190 and so the significance of this breakout is very high. Almost all sectors were weak today. Banks , Metals , Automobiles were the major losers.

What next?

The short term trend remains down. Reversal can happen only if Nifty closes above 5200. On the above chart you can see that Nifty has taken an intermediary support at a sloping trend line. This trend was acting as resistance and now it will be support. Further fall in Nifty can be expected only if Nifty sustains below 5100.

Nifty daily chart

Nifty has turned bearish before a week when the raising wedge was broken. This sharp fall is only the continuation of the trend. Now Nifty has taken support at 200 DMA which is at 5100. Once Nifty closes below this level the trend will remain down from short term to medium term perspective.

Bank Nifty  

The regular readers of this blog might recall that before few days that we had indicated a sell on Bank Nifty  if  it closes below 10500. On Friday we have initiated sell on Bank Nifty aug fut . We are expecting a target of 10100 and much below.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Bank Nifty Aug	short	25	10531	10315	5400
Bank Nifty Aug 10500 CE	long	25	225	211	-350
Minifty Aug fut	short	20	5216	5145	1450

Today's Trade 

Scrip	Qty	Buy Price	Sell Price	P/L
JSW Steel	60	691	695	240
SBI	20	2097	2105	160

Nifty Medium Term trend

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5345
Reversal if closes below	5080

Thought for the day

Wanting to reform the whole world without discovering ones true self is like trying to cover the world with leather to avoid the pain of walking on stones and thrones. It is much simpler to wear shoes. Sri Ramana Maharshi