Market updates for 15/10/2012

 

Nifty daily chart

 

 As expected Nifty is facing resistance at 5720 . On Friday Nifty made a high of 5725 but face selling pressure and closed at 5676. Trading range is between 5630-5720. Breakout may happen on downside. 

 

Nifty weekly chart

 

 

 

For 2 consecutive weeks Nifty is unable to close above 5740 on weekly basis. Closing above this level is very much necessary to continue the uptrend. As Nifty is facing resistance at 5740 we can say that this will be the peak of uptrend from 5030 and Nifty can fall to he levels of 5500 before starting another cycle of uptrend.

 

 

 

 

Fibonacci retracement is drawn from 5034 to 5815 in weekly chart. 23.6% retracement is around 5630 once Nifty closes below this level we can expect a target of 5520. Reversal of the trend will be close above 5820.

 

Chart of the day

 

Dow Jones

 

 

After breakout from 13300 DJIA made a high of 13650. Now resistance at 13300 is acting as support. If DJIA breaks this level then it ca go down till 12900. So far Nifty has rallied because of domestic events and the momentum has slowed. Now we need to see whether it follows global market.

Nifty medium term trend

 

Trend	UP
Initiation Date	08-07-12
Initiated at	5336
High since change	5815
Reversal if closes below	5580

 

 

Open positions

 

Scrip	Type	Price	CMP	P/L
Bank Nifty Fut	Short	11422	11417	5
Bank Nifty 11400 PE	Long	204	178	-26

 

 

Thought for the day

 

Nature , time , patience are three great physicians.