Midday Market update

Nifty hourly chart

So far there is no significant movement in Nifty. Levels  to watch for the day are 5310-5300-5280 on the lower side. On the upside 5335-5350 are  the resistance.

Market update for 13/08/2012

Nifty Hourly Chart 

Nifty has formed a channel formation in hourly chart Nifty has formed a ascending channel. 5350 is the level which is restricting the upward trend in Nifty. On Friday Nifty tested the bottom of the channel which is around 5300 and bounced back. Nifty is trading in a narrow range of 50 points that is between 5300-5350 and unless this range is broken we cannot take position in Nifty. If Nifty sustains below 5300 expected target is 5280-5250. On the other other hand if sustains above 5350 then target is 5380-5400.

Nifty Daily Chart 

Nifty is unable to breach 5350 level.  RSI has entered overbought region and 5350 may become the peak of this rally which started at 5100. 5300 was acting as resistance and now it is acting as support. To enter into a high probability trade wait for close below 5280 or above 5400.

Nifty weekly chart

Nifty has managed to close above 5300 on weekly basis. This indicates that the medium term trend is up. If Nifty closes below 5300 on weekly basis  then expected targets are 5150-5050.

Traders should note that there is no clear cut trend in the market.Whenever it enters a narrow range bound phase it will be difficult to understand whether this is a continuation of the prevailing trend  or reversal. The best approach is to trade the breakouts.

Chart of the day

 

SBI Weekly chart

SBI was one of the major loser in this week. In weekly chart of SBI you can observe that it has breached trend line support on closing basis.Unless SBI closes above 1950 can cannot take long position. Since it has breached the trend line support at 1930 there is a possibility of SBI reaching Rs.1800 in coming days.

Open Positions

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	504	-18
Bank Nifty 10300 PE	Long	150	115	-35

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Havells	542	534	-8
Nifty 5300 PE	57	55	-2

 

Nifty Medium Term Trend

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5336
Reversal if closes below	5080

Thought for the day

An ounce of practice is worth more than tons of preaching - Mahatma Gandhi.

Avoid Overtrading

 Too many traders feel that they must trade every day. Let’s face it; some traders are addicted to trading. A day without a trade is like a day without a meal to them. The face is that some days offer few if any trading opportunities. The trader who wishes to minimize loss and preserve capital should understand that it is not necessary to trade everyday. There will be days when no trades are indicated.

One of the telltale signs of the futures traders about to go astray is the searching for a good trade syndrome. Have you ever found yourself sitting at the computer or quotation screen, bored because there were no trades that day? Ave you ever found your fingers idly rambling over the key board as you searched chart after chart for market to trade? This is the first sign of trouble. If you ever find yourself in this position, do yourself a favor stop looking? Good trading does not occur every day.

Set standards as to which markets you will trade. I there are no trades in these markets do not allow you to endlessly search for trades in obscure or thinly traded markets. This may work occasionally, but the odds of success are slim. The successful trader will specialize only in a handful of markets and will do well at these. Do not attempt to spread yourself too thin by looking for trading opportunities where they do not exist.

Source :  Market  Masters written by Jake Bernstein

Mid day market update

Nifty hourly chart

In hourly chart Nifty has formed a channel. It might test the lower part of the channel which is around 5300. Long positions can be considered around this level.

Today is the last trading session of this week. If Nifty closes above 5300 then it will confirm the breakout in weekly chart of Nifty. If it happens then Nifty can test 5350-5400.

Market update for 10/08/2012

Nifty hourly chart

In the hourly chart of Nifty traders can observe that Nifty has formed a ascending channel. It has tested the upper part of the channel which is acting as resistance. Momentum indicators like RSI and MACD are indicating sell and Nifty can test 5300-5270.Long position in Nifty can be considered if it comes down to levels of 5270-5300 . The short term trend will remain positive until Nifty is above 5270.

Nifty daily chart

Today's trading session was very volatile as IIP numbers were announced. Once again  Nifty made an unsuccessful attempt to sustain above 5350. The short and medium term trend of Nifty will remain bullish. 5300 which was acting as resistance can act as support so market is expected consolidate in the range 5300-5350 for some time. In this situation it would be more appropriate to concentrate more on front line high beta stocks rather than trading in Nifty.

Open Positions

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	514.3	-7.7
Nifty 5300 PE	Long	57	48	-9
Havells	Long	542	539	-3

 

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Havells	542

Nifty Medium term view

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5336
Reversal if closes below	5080

Thought for the day

Effort fully releases its reward only after a person refuses to quit.