Market update for 31/08/2012

 

Nifty daily chart

 

Today's trading session was highly volatile particularly in last one hour because of FnO expiry. Nifty made a low of 5255 and bounced back. It closed at 5315 up by 27 points. Major support for Nifty exists at 5250 and resistance at 5350. The broader range of the Nifty is expected to be between 5220-5350.

 

The sentiment of the traders may be bearish but the chart structure shows that Nifty will get lot of supports in the range 5250-5200. Moreover many index companies are at important support levels. Unless some major negative event happens Nifty is not going to break 5250-5200. If 5200 is breached next target will be at 5000.

 

Nifty has recovered from the day's low of 5255 if Nifty reaches 5350 then short can be initiated and stop loss will be closing above 5350.

Nifty weekly chart

The chart structure of Nifty is clearly visible in weekly chart. You can see in the chart that at 5250 there are multiple support and resistance is at 5440 which defines the broader range of market.

Chart of the day

 

Crude Oil

 

The overall trend of the crude oil is up. But the momentum is slowing down and technical indicators like RSI and MACD are showing a possible down trend in short term. Crude oil may come down to 5250 level which is the lower part of the channel.

 

Nifty Medium term trend

 

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5448
Reversal if closes below	5180

 

 

Open Positions

 

Scrip	Type	Price	CMP	P/L
Britannia	Long	486	488	2

 

Positions squared off

 

 

Scrip	Buy Price	Sell Price	P/L
Bank Nifty Sept 10100 PE 2 Lots	160	240	160
Bank Nifty sep 10200 CE 1 Lot	240	143	-97

 

 

Intraday Trades

 

Scrip	Buy Price	Sell Price	P/L
Tata Motors	232	237	5

 

 

Thought for the day

 

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