Market update for 27/07/2012

 

Nifty hourly chart

It was a frightening day for bulls. Nifty has breached the 'great wall of china' which is nothing but 200 DMA. From past 3 trading sessions 200 DMA was defended but today break out has happened.

On hourly chart Nifty is holding 5042 which is a low of one and half months. Nifty may bounce from this level , but , it is unlikely to breach 5100. If Nifty reaches 5090-5100 levels short can be executed and the risk involved is very less. Stop loss above 5145. ( Spot levels)

Nifty daily chart

Nifty has breached 200 DMA. MACD is still down and as per fibonacci next targets are 4990-4890. RSI has reached oversold region but in a trending market it can remain oversold for longer than expected time.Those who are holding short positions can book partial profit at 4990-5000 levels.

Nifty Weekly chart

Nifty is forming a triangle in daily and weekly chart. Nifty is below 50 WMA which is a 5085. Tomorrow is the last trading session of the week and if Nifty closes below 5085 then it can easily achieve 5000-4900 levels. 4900 could be the bottom of the triangel and from 4900 reversal may happen. Tomorrow's trading session is very important.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Bank Nifty 10100 PE	Long	25	249	240	-225
Nifty Aug fut	short	50	5126	5083	2150
Nifty  5200 CE	Long	50	72	50	-1100

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Glaxo	20	2082	2171	1780
Bank Nifty 10100 PE	25	249	240	-225

Nifty Medium term view

Trend	Down
Initiation Date	26/07/2012
Initiated at	5043
Low since change	5043
Reversal if closes above	5283

Thought for the day

No worst enemy can harm you as much as your own ungaurded thoughts - Buddha.

Advice to traders

There will be times when your calculations misfire; what had seemed to be easy campaign will turns out hard.  Not everything can foresee. Not only it is important to pick your battle carefully , then , but you must also know when to accept your losses and quit.

In 1971 the boxers Mohammed Ali and Joe Fraizer , both at the heights of their career , met for the world heavy weight championship. It was a grueling match and one of the most famous match in the history of world boxing. Fraizer won by decision after nearly knocking out Mohammed Ali in 14 th round. But both men suffered horribly in the fight ; both threw lot of punches . Ali wanted revenge and he gained a rematch in 1974 – another 15 round grueling match and won by decision. Both boxers were unhappy, they wanted more conclusive result. So they met again in 1975 in the famous ‘Thrilla in Manila ‘ . This time Ali won the match , but neither man were the same again : these three matches had taken two much out of  them which shortened their careers. Pride and anger had taken their power.

Let us not fall into the trap of anger and revenge ; know when to stop.

Source : The 33 strategies of war written by Robert Green