Market update for 27/07/2012

 

Nifty hourly chart

It was a frightening day for bulls. Nifty has breached the 'great wall of china' which is nothing but 200 DMA. From past 3 trading sessions 200 DMA was defended but today break out has happened.

On hourly chart Nifty is holding 5042 which is a low of one and half months. Nifty may bounce from this level , but , it is unlikely to breach 5100. If Nifty reaches 5090-5100 levels short can be executed and the risk involved is very less. Stop loss above 5145. ( Spot levels)

Nifty daily chart

Nifty has breached 200 DMA. MACD is still down and as per fibonacci next targets are 4990-4890. RSI has reached oversold region but in a trending market it can remain oversold for longer than expected time.Those who are holding short positions can book partial profit at 4990-5000 levels.

Nifty Weekly chart

Nifty is forming a triangle in daily and weekly chart. Nifty is below 50 WMA which is a 5085. Tomorrow is the last trading session of the week and if Nifty closes below 5085 then it can easily achieve 5000-4900 levels. 4900 could be the bottom of the triangel and from 4900 reversal may happen. Tomorrow's trading session is very important.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Bank Nifty 10100 PE	Long	25	249	240	-225
Nifty Aug fut	short	50	5126	5083	2150
Nifty  5200 CE	Long	50	72	50	-1100

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Glaxo	20	2082	2171	1780
Bank Nifty 10100 PE	25	249	240	-225

Nifty Medium term view

Trend	Down
Initiation Date	26/07/2012
Initiated at	5043
Low since change	5043
Reversal if closes above	5283

Thought for the day

No worst enemy can harm you as much as your own ungaurded thoughts - Buddha.

Advice to traders

There will be times when your calculations misfire; what had seemed to be easy campaign will turns out hard.  Not everything can foresee. Not only it is important to pick your battle carefully , then , but you must also know when to accept your losses and quit.

In 1971 the boxers Mohammed Ali and Joe Fraizer , both at the heights of their career , met for the world heavy weight championship. It was a grueling match and one of the most famous match in the history of world boxing. Fraizer won by decision after nearly knocking out Mohammed Ali in 14 th round. But both men suffered horribly in the fight ; both threw lot of punches . Ali wanted revenge and he gained a rematch in 1974 – another 15 round grueling match and won by decision. Both boxers were unhappy, they wanted more conclusive result. So they met again in 1975 in the famous ‘Thrilla in Manila ‘ . This time Ali won the match , but neither man were the same again : these three matches had taken two much out of  them which shortened their careers. Pride and anger had taken their power.

Let us not fall into the trap of anger and revenge ; know when to stop.

Source : The 33 strategies of war written by Robert Green

Market update for 26/07/2012

Nifty hourly chart

Nifty hourly chart indicated break down in the first few hours of trading session. Day low was at 5076 but Nifty managed to recover and closing is at 5109 down by 18 points.

As per hourly chart the important resistance levels are 5165-5191. Support levels are 5100-5080. Short term trend remains down so sell Nifty on rise.Reversal of the trend is above 5200.

Nifty daily chart

Nifty is still holding 200 DMA at 5100. If Nifty closes below 5080 then major reversal of the trend can be expected.

 

Chart of the day

Glaxo

From past two days Glaxo is one the gainers in spite of Nifty closing in red. Glaxo is not the darling of speculators. It is a thinly traded stock and from past few months it was consolidating at 1980-2050.

It has gained Rs.80 in past 2 trading sessions and has closed above important moving averages like 100 and 200 DMAs. It is expected to reach a target of Rs.2200 in short term.

Open Positions 

Scrip	Type	Qty	Price	CMP	P/L
Glaxo	Long	20	2082	2150	1360
Nifty Aug fut	short	50	5126	5141	-750
Nifty Aug 5200 CE	Long	50	72	75	150

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Nifty Aug fut	50	5126
Nifty Aug 5200 CE	50	72
Hero Mot	30	2022	2036	-420

Nifty Medium Term Trend

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5345
Reversal if closes below	5090

Thought for the day 

Great mind discuss ideas , average mind discuss events , small mind discuss people.

Market update for 25/07/2012

Nifty hourly chart

 

                                                     Click on the chart to enlarge

In the previous post it was mentioned that Nifty has taken support at sloping trend line which is at 5107. Today's trading session was choppy and Nifty has bounce back from support levels.Unless Nifty breaks 5100 we cannot expect further fall. Now the trading range is 5100-5191.

 

Nifty daily chart

Nifty has managed to hold 200 DMA. If we consider the upward rally from 4769 to 5348 then 38.2% retracement is at 5127 and today Nifty has closed at 5128. So the decline in Nifty is temporarily halted at 38.2%. Nifty will get major support till 5100. Below 5100 the targets are 5058-4990.

Today's candle stick pattern is called 'doji'. Doji indicates the indecision in market - that means lack of clarity of direction.

The overall direction of the market will remain down. Initiate new short positions if Nifty closes below 5100.

Chart of the day

Copper

Copper was trading in a range and the range was 422-432. Yesterday this range is broken and copper had closed at 419.95. The medium term trend of copper will be down and it will face strong resistance around Rs.424. Positional traders can short copper and reversal will be closing above Rs.424.

Open Positions

Scrip	Type	Qty	Price	CMP	P/L
Glaxo	Long	20	2082	2110	560

Today's Trade

Scrip	Qty	Buy Price	Sell Price	P/L
Bank Nifty Aug	25	10531	10347	4600
Bank Nifty Aug 10500 CE	25	225	211	-350
Minifty Aug fut	20	5216	5149	1340
Maruti	40	1197	1205	320

Nifty Medium term trend

Trend	Up
Initiation Date	12/06/2012
Initiated at	5116
High since change	5345
Reversal if closes below	5090

 

Thought for the day

Condemn none : if you can stretch out a helping hand , do so . If you cannot , fold your hands, bless your brothers and let them go in their own way. -Swami Vivekananda

Dear Traders ,

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