Market update for 30/07/2012

Nifty hourly chart

Friday's trading session was highly volatile. Nifty made a gap up open and traded above 5100. But it faced resistance at 5145 level and eventually came down to 5099 levels. Nifty has closed marginally above 200 DMA which is at 5098.

Sustainable short term uptrend may start above  5160. If 5160 is breached on closing basis then the target will be 5200-5250 and reversal  will be closing below 5100.

 

Nifty weekly chart

Nifty has formed a triangle pattern in both weekly chart and daily chart. As you can see in the above pic the trading range is decreasing and we may not witness a major breakout in the short term. Nifty has taken support at 50 WMA. If Nifty closes below 5085 on weekly basis then it can reach 5000 and 4900. Stochastics on weekly chart is overbought , it is indicating that upside is limited to the extent of 5200-5250. Breakout from 5250 will take Nifty to 5350-5400 levels in medium term.

Chart of the day

Dow Jones

Dow Jones was trading between 12975-12460. On Friday's trading session it has given a clear cut breakout and closed above 13000. The logical targets are 13150-13300.

Nifty medium term trend

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

 

Thought for the day

Take only what you can byte and byte what you can swallow and swallow what you can digest.