Market updates for 18/10/2012

 

Bank Nifty

 

 

Consolidation has continued to happen in major index like Nifty , Bank Nifty as well as in individual stocks. Another 5 trading sessions are left for expiry and I don't think that we can see breakout on either side.

 

Above is the chart of Bank Nifty. Here consolidation is happening between 11300-11500. Sustainable close below 11300 will reach 11100 in short term.

 

Chart of the day

 

 

Reliance was unable to hold the trend line support and yesterday it has closed below trend line. Now it is likely to move towards Rs.760 in medium term.

 

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
Nifty Nov Fut	Short	5705	5692	13
Nifty 5700 Oct CE	Long	48	31	-17
Yes Bank Fut	Short	387	387.7	-0.7

 

 

Thought for the day

 

The future belongs to those who believe in the beauty of their dreams.

 

 

 

 

 

 

 

Market updates for 17/10/2012

 

Nifty daily chart

 

 

Today Nifty has made a low of 5635 and closed at 5648 down by 39 points. So we are still in consolidation phase and 5630-5720 is the range. Momentum indicators are showing possible downward movement towards 5500 once 5630 is breached. Wait for breakout.

 

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
Nifty Nov Fut	Short	5705	5679	26
Nifty 5700 Oct CE	Long	48	30	-18

 

 

Thought for the day

 

Stop worrying about pot holes on the road and celebrate the journey.

 

 

Market updates for 16/10/2012

Nifty daily chart

Nifty has continued to consoildate in a narrow range. After facing resistance at 5720 logically it would have reached 5630 in a day or two. Today's closing was at 5687 up by 11 points. Close above 5720 will take Nifty to 5800 within few trading sessions. 

Reliance Industries

Even though Reliance has closed below support at Rs.824 it has taken trend line support. Now it has the potential to bounce back towards Rs. 850. 

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
Nifty Nov Fut	Short	5705	5733	-28
Nifty 5700 Oct CE	Long	48	58	10

Positions squared off

Scrip	Buy Price	Sell Price	P/L
Bank Nifty Fut	11422	11323	99
Bank Nifty 11400 PE	204	130	-74

 

Thought for the day

 

 If we don't change we don't grow. If we don't grow we are not really living.

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.

 

 

 

 

 

 

Market updates for 12/10/2012

 

Nifty daily chart

 

 

Nifty has made a sharp bounce back from the support at 5630. 20 DMA is at 5650 levels and until these two levels are broken further fall cannot be expected. On the higher side 5720 is the resistance. Sustainable uptrend can be expected above 5780. Above 5780 target will be 5815-5850-5950. On the other hand below 5630 target will be 5580-5500. The short term trend will remain down.

 

Important events :  Quarterly result of Infosys , HDFC Bank, IIP data

 

Chart of the day

 Tomorrow Infy and HDFC bank are announcing quarterly result. Lets look into the chart pattern to identify the best entry points. Traders should note that the entry points mentioned here are not for intraday trading.

 

Infy

 

 

 

Last three quarterly result of Infy was below expectation and on the day of result the stock corrected by nearly 10%. Technically Infy is weak as it is trading below 200 DMA an also it has breached important channel support. Immediate support is at 2460 and resistance is 2647. Breakout from this range can take Infy to 2737 or 2330. Tomorrow Infy will be highly volatile so day traders should be highly cautious.

 

HDFC Bank

 

 

HDFC Bank is facing resistance at Rs.638 and major support is at Rs.600. Long position can be considered if it closes above Rs.638 for a target of Rs.675 and below Rs.600 target will be Rs. 580-560.

 

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	11549	-127
Bank Nifty 11400 PE	Long	204	280	76

 

 

Thought for the day

 

 He who ask a question is a fool for a minute he who doesn't ask is a fool for ever.