Market estimates for 05/10/2012
Nifty hourly chart
As expected Nifty has breached resistance at 5740 and closed at 5787 up by 56 points. Nifty made a high of 5807 near to the expected target 5820.
Nifty daily chart
The uptrend in Nifty has remained intact and now the short term targets are 5820. Once Nifty sustains above 5820 the expected target is 5950.
I have seen many discipline medium term traders who have bought blue chip companies when market was at 4800 levels.I had recommended LT at 1100 , Yes Bank at 270 , ICICI Bank at 850 and ITC at 190 to name a few. These traders can start booking partial profit above 5950. Assuming that Nifty is going to reach 6300 in coming days , medium term traders should liquidate at least 50 % position at 6000-6300 levels , invest in bonds and pray for dip!!
Chart of the day
BHEL
Above mentioned is the weekly chart of BHEL. This was recommended to subscribers who trade in cash segment as weekly chart is used for entry point.
BHEL has made a breakout from the trend line resistance at Rs.238. The importance of this trend line is very high as it is formed for a period of around 2 years. The bad days of BHEL seems to be over at least for medium term and expected targets are Rs. 277-300.
Nifty medium term trend
| Trend | UP |
| Initiation Date | 07/08/2012 |
| Initiated at | 5336 |
| High since change | 5807 |
| Reversal if closes below | 5580 |
Position squared off
| Scrip | Buy Price | Sell Price | P/L |
| Tata Motors Fut | 275 | 280 | 5 |
| Tata Motors 270 PE | 9.3 | 6.9 | -2.4 |
| Ambuja Cement | 205 | 219.5 | 14.5 |
Open Positions
| Scrip | Type | Price | CMP | P/L |
| Axis Bank Fut | Long | 1155 | 1151 | -4 |
| Axis Bank 1150 PE | Long | 44 | 45 | 1 |
| BHEL | Long | 249.5 | 266.5 | 17 |
| Coal India | Long | 364 | 361.7 | -2.3 |
My humble advice to my subscribers and non subscribers is that persistence is one of the most important quality of a successful trader. Expansion is followed by contraction and contraction is followed by expansion. During the time of contraction it is difficult to judge the direction (at least for me) so minor losses may happen. We cannot decide the value of an individual/trading system based on few failures. At the same time we should not persist until we lose everything in market. Some times persistence is god for kings an spiders but not for trader. Trader should know when to quit.
