Market estimates for 19/12/2012

 

JSW Steel

 

 

 

In yesterday's post analysis of JSW Steel was uploaded and as expected it not only reached Rs.790 but also surpassed the target and made a high of Rs.814. I hope you all have enjoyed the profit. Further upside is expected.

 

REC

 

 

 

REC is one of the top gainers in today's trading session. The stock was up nearly by 5%. It has closed at a critical resistance level. Wait for breakout to initiate long position.

 

Commodity Chart

 

Lead

 

 

Lead has breached trend line support at Rs.125 and at this point of time it is trading at Rs.126.20. We are bullish on lead from short term point of view.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	5950
Reversal if closes below	5680

 

 

I always say to my clients not to depend on 'News'. But few traders are able to understand the point. Today there was an expectation that RBI will cut CRR but that didn't happen. So Nifty started falling but later on it made a bounce back and closed at 5894 up by 36 points. Trade according to time tested method.

 

Thought for the day

 

There is neither past nor future . There is only present . Yesterday was the present to you when you experienced it , and tomorrow is the present when you experience it. Therefore experience exists only in the present and beyond experience nothing exists - Ramana Maharshi

 

 

Market estimates for 18/12/2012

 

Nifty hourly chart

Nifty has support around 5640 level. If this level is breached then we can expect fall up to 5800-5780 levels. 5885-5900 are the resistance levels above which Nifty can reach 5950. So short term range of the Nifty is around 5800-5900.

Madras Cement

 

 

Madras Cement has made a major rally from past 6 months. From past few trading sessions it is facing resistance at Rs.220. Breakout from this level should be used to create new long positions.

 

JSW Steel

 

 

JSW Steel is one of those stocks which are forming higher top , higher bottom formation. Last week it has taken support at trend line and today made a sharp bounce back. This bounce is expected to continue till Rs.790.

 

Tech Mahindra

 

 

In yesterday's post I had indicated breakout in Tech M. Even though it made an intraday low of Rs.925 closing was at Rs.952.70. As long as it is above Rs.940 position will remain open.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	5950
Reversal if closes below	5680

 

Thought for the day

 

If failure has has the strength to turn your life into bitterness itself , then patience has the strength to turn your life into sweetest joy. Do not surrender to fate after single failure . Failure at most precedes success - Swami Chinmoy

 

 

 

 

 

Market estimates for 17/12/2012

 

Nifty daily chart

 

 

Nifty has bounced back from 5841 and closed at 5870. The short term trading range could be between 5840-5900. Breakout from 5840 will take Nifty to 5800-5780. In worst case scenario Nifty can fall to 5700 which is the strong base for Nifty.

 

Nifty weekly chart

 

 

 

Nifty is facing strong resistance at 5950 which is 78.6% retracement. If Nifty closes above this level on weekly basis then Nifty can reach 6180-6300.

 

Chart of the day

 

Tech Mahindra

 

 

 

Tech Mahindra has made break out from the channel. Traders can enter long in Tech M for a target of Rs.996. Stop loss close below Rs.940.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	5950
Reversal if closes below	5680

 

 

Thought for the day

All losses in market are entire attributable to not investing with the primary trend.

 

 

Market updates for 14/12/2012

 

Nifty hourly chart

 

 

 

In yesterday's post it was mentioned that there is a slow down in momentum and break out below 5875 will teke Nifty to 5840 . Refer previous post http://karthik4bullsnbears.blogspot.in/2012/12/dear-traders-i-have-started-conducting.html . Today Nifty made a low of 5841. There is room for further correction. Expected targets are 5810-5760-5740 (spot levels) .

 

Nifty Daily Chart 

 

 

Nifty is showing signs of exaution in hourly as well as in daily chart. RSI is overbought and showing signs of possible short term dip. It has  major support around 5740 which is likely to be tested. Reversal will be above 5900.

 

Chart of the day

 

SBI

 

 

SBI is one  of the out performer in the recent rally. It has made a rally of around 250 points. t has formed multiple tops around Rs.2250 breakout from this level will leed to fall towards 2200 and much below. However today we have created bearish position based on trend indicators. Lets see !

 

Nifty medium term trend

 

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	5950
Reversal if closes below	5680

 

 

Thought for the day

 

We can gain experience from the past but we cannot relive it.  We can hope for the future but we don't know if there is  one.

 

 

 

 

Dear Traders,

I have started conducting  on line discussion about 'Risk Management in Trading' .  Good news is it will be free. If you are interested to participate call me on 08197190791.

Market updates for 13/12/2012

 

Nifty hourly chart

 

 

 

Nifty has become flat from few trading sessions. After a rally of 400 points this contraction is obvious. RSI is showing signs of divergence and if Nifty sustains below 5875 (spot) then it may go down till 5840.

 

Chart of the day

 

BHEL

 

 

BHEL made a break out from resistance at Rs.240  and reached a high of  Rs.248. But this breakout was not sustained and now it has closed below the support and 20 DMA. It is expected to correct further.

 

Nifty medium term trend

 

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	5950
Reversal if closes below	5680

 

 

To follow on twitter click on www.twitter.com/karthik4ta

 

 

Thought for the day

 

All the powers in the universe is already ours. It is we who have put our hands before our eyes and cry that it is dark. Swami Vivekananda