Market updates for 24/09/2012
Nifty daily chart
Nifty has made a huge breakout from the resistance at 5630. On Friday it gained whopping 136 points and closed at 5690. Nifty has been forming higher high and higher low pattern and any fall towards towards 5630 should be considered as buying opportunity. Expected short term target is 5800. As long as Nifty is above 5630 don't dare to short Index/stock but buy on dips.
Nifty weekly charts
The breakout from the descending trend line has proved to be extreme bullish sign and Nifty has gained significant 120 points compared to last week's close. Nifty has closed above 5630 on weekly basis which is 100 % retracement. Now it expected to move towards 5840-5965 which are 123.6 % and 138.2% retracement respectively. Since market is in a perfect trend the resistance levels should be used to book partial profit but should not be used to take short positions.
Chart of the day
SBI was in a down trend from many months. In last week it has indicated a major breakout by closing above trend line resistance at 2125. MACD is indicating 'buy' and continuation of uptrend is expected.
Nifty medium term trend
| Trend | UP |
| Initiation Date | 07/08/2012 |
| Initiated at | 5336 |
| High since change | 5720 |
| Reversal if closes below | 5485 |
Open positions
| Scrip | Type | Price | CMP | P/L |
| Nifty SeptFut | Long | 5705 | 5710 | 5 |
| SBI Sept Fut | Long | 2220 | 2217 | -3 |
| SBI Sept 2200 Put | Long | 31 | 31.5 | 0.5 |
Positions squared off
| Scrip | Buy Price | Sell Price | P/L |
| DLF Fut | 231.7 | 236 | 4.3 |
| DLF 230 PE | 6.7 | 3.9 | -2.8 |
Thought for the day
To be tested is good. The challenged life may be the best therapist.
