Market Update for 22/06/2012

 

Nifty Hourly Chart

                                                     (Click on the image to enlarge)

Today market has ended up with significant gains. Nifty closed at 5165 up by 44 points. Banking,capital goods and reality were  major gainers in today's session. SBI,JP Associates,Reliance Infra, DLF were some of the major gainers in today's trade.

Nifty has breached important resistance at 5143 which is a bullish sign. Do not short market based on the assumption that it cannot go further. Even if you take short , based on a proven method , once you identify that market is moving in reverse direction EXIT.It is not necessary to win every trade. BUT we have to win average number of trades.

The next target for Nifty is 5193. Traders can book partial profit at this level.

Nifty Daily Chart

Before few trading session Nifty was range bound and it was alternatively closing above and below 200 DMA which was confusing the traders. From past two trading sessions Nifty has sustained above 200 DMA. Now it is expected to move towards the peak made on 18th which is at 5193. You can also see in the graph that 100 DMA is at 5199 which can also act as resistance. So further upside can be expected above 100 DMA. Above 5200 target will be 5300-5400. Reversal below 5050.

Chart of the day

Before few trading session there was a peculiar situation where chart f Nifty was looking Strong and Bank Nifty was looking weak. In fact we had suggested short on Bank Nifty at 9760 and covered at 9600. Nifty and Bank Nifty were moving in opposite direction. But now the positive correlation is reestablished.

Bank Nifty is looking bullish, there is a minor hurdle at 10100, but the target for Bank Nifty is 10400, reversal below 9800.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Havells	Long	150	545	246.7	255
Hero Motoco	Long	35	2050	2071	735
Tata Mot	Long	100	245.5	248.3	270

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Bata	100	810	840	3000
Jubl Food Fut	250	1177	1188	2750
SBIN 2100 PE	125	69	14.25	-6843
SBIN 2000 PE	125	26	3	2875
Nifty 5100 PE	50	45	23	-1100

Nifty medium term view

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
Reversal if closes above	4880

 

Thought for the day

When you find yourself in the valleys of life, don't kill yourself with grief. See it as a strategic position to have a clearer view of your ultimate destination - the peak.

Market update for 21/06/2012

Nifty Hourly Chart

                                                    (Click on the image to enlarge)

Another choppy trading session. Nifty is in the range between 5047 to 5143 from past 7 trading session. As expected Nifty has reached the upper part of the range . Now either it has to reach 5200 or it should come back to 5047.

In tomorrows trading session if Nifty sustains below 5090 then we can expect the levels of 5047 and if sustains above 5143 for more than a hour then the target will be 5200.

It Nifty breaks 5047 next target will be 5017-5000.

 

Chart of the day

 

Havells Ltd

Havells is in long term bullish phase. It is one of those few companies which haven't participated in the bearish phase of the market. In the previous trading session this company tested the trend line at Rs.530 and managed to bounce back.Today it has gained by 1.5% which confirms that Rs.530 is a strong support. Now Havells is expected to reach a target of Rs.560-570 and reversal will be closing below Rs.530.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Havells	Long	150	545	246.7	255
SBIN 2100 PE	Long	125	69	37.85	-3893
SBIN 2000 PE	Short	125	26	10.5	1937
Hero Motoco	Long	35	2050	2035	-525
Tata Mot	Long	100	245.5	245.95	45
Nifty 5100 PE	Long	50	45	44	-50

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Bata	100	810	822	1200
Tata Mot	330	242.5	246.5	1320
Hero Motoco	35	2050
Tata Mot	100	245.5
Infy fut	125	2472	2471	125
Infy 2500 CE	125	28	26	-250

 

Nifty Medium Term View

Trend	Up
Date	12/06/2012
Initiated at	5116
Reversal if closes above	4880

Thought for the day

"Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down."- Warren Buffett

 

Market Update for 20/06/2012

 

Nifty Hourly Chart

                                                     

Nifty has managed to bounce back from the intermediate support at 5047 and closed at 5103 up by 39 points. Now Nifty is expected to touch 5143 which is upper part of the range.  If Nifty sustains above 5143 then we can expect a target of 5200 and above. Market can remain choppy as RBI policy is behind us. The short term reversal of the trend can happen if Nifty sustains below 5047.

Nifty Daily Chart

Nifty is trading between 5050 to 5150 from few trading sessions. Whenever an Index or Stock trades in a range one day there will optimism in the market and next day pessimism. So traders should wait for breakout from the range before carrying the positions. The short term trend of Nifty will be up until it is above 5000.

Charts of the day

Infosys Ltd

Today short in Infy was recommended to traders. The reason behind this is Infy was in uptrend from 2351 levels and it made a high of 2543. In this rally it formed a ascending channel. The peaks of the channel are 2463 and 2543 and bottoms are at 2393, 2418, 2473. Now in hourly chart this channel is broken and Infy is expected to reach Rs.2445-2430 and below and reversal is above Rs. 2500.

Bank of Baroda

In today's session BoB is one of the losers in Banking sector. BoB is down by 1.2% and closed at Rs.669.60. In the above mentioned daily chart you can observe that it has closed right at the trend line. Its a make or break situation. MACD is showing a sell indication and there is every possibility that BoB can give a downside breakout. If it closes below Rs.669 for a day then the expected target is Rs.639 and reversal will be above Rs.Rs.674.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Havells	Long	150	545	539	-900
SBIN 2100 PE	Long	125	69	45.95	-2875
SBIN 2000 PE	Short	125	26	14.5	1437
Infy fut	Short	125	2472	2488	-2000
Infy 2500 CE	Long	125	28	34	750

Today's Trade 

Scrip	Qty	Buy Price	Sell Price	P/L
SBIN 2100 PE	125	69
SBIN 2000 PE	125		26
Bank Nifty Fut	25	9600	9760	4000
Bank Nifty 9800 CE	25	90	156	-1650
Infy fut	125	2472
Infy 2500 CE	125	28

Nifty Medium Term View

Trend	Up
Date	12/06/2012
Initiated at	5116
Reversal if closes above	4880

Thought for the day

  "I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will." - Warren Buffett

There is a random distribution between wins and losses for any given set of variables that define an edge. In other words, based on the past performance of your edge, you may know that out of the next 20 trades, 12 will be winners and 8 will be losers. what you don’t know is the sequence of wins and losses or how much money the market is going to make available on the winning trades. This truth makes trading a probability or numbers game. when you really believe that trading is simply a probability game, concepts like ‘right’ and ‘wrong’ or ‘win’ and ‘lose’ no longer have the same significance. As a result, your expectations will be in harmony with the possibilities.
- Mark Douglas: ‘Trading in the Zone’

Market Update for 19/06/2012


Nifty Hourly Chart

                                                     (Click on the chart to enlarge)

Today's trading session was a disappointing one. Nifty made a gap up open but was unable to sustain at higher levels. Nifty fell sharply after RBI announced its policy to keep the rates unchanged disappointed the street. Interest rate sensitive sectors like Banks, Automobiles , Real Estate and others were hammered down. Nifty closed at 5064 down by 75 points.

In hourly chart Nifty has tested its previous bottom at 5047. Nifty can go down to 5017-5000 levels if it sustains below 5047. On the other hand if it sustains above 5090 we can expect the levels of 5145.

The short term view of the market will be positive until it is above 5000.

Nifty Daily Chart

In today's session Nifty has taken support at trend line at 5041. If Nifty closes below this level that would be first indication of weakness in the market. Further fall can be expected below 5000.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Havells	Long	150	545	534	-1650
Bank Nifty Fut	Short	25	9760	9715	1125
Bank Nifty 9800 CE	Long	25	156	131.9	-602

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Nifty 5200 CE	50	70	15	-2750
Nifty 5100 PE	50	74	105	1550
Bank Nifty Fut	25		9760
Bank Nifty 9800 CE	25		156

 

Nifty Medium Term View

Date	12/06/2012
Initiated at	5116
Reversal if closes above	4880

 

Thought for the day

A man may beat a stock or a group at a certain time, but no man living can beat the stock market! - Jesse Livermore