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. 

Market update for 09/08/2012

Nifty hourly chart

Nifty is unable to break the important resistance at 5350. Even though Nifty sustained above 5350 it is unable to break the resistance and closed below 5350. Throughout the day Nifty was consolidating in a narrow range. Indicators RSI and MACD are showing slow down in momentum and there are chances of Nifty falling to 5300 levels. Nifty is forming higher tops and higher bottoms in hourly chart this formation will change if Nifty sustains below 5270. So important resistance for short term is at 5350 and supports are at 5300-5270. Short term trend remains up.

 

Nifty daily chart

Nifty made a breakout from the trend line resistance at 5300. But this breakout doesn't seems to be sufficient. As indicated in the chart 5350 was tested several times and unless this resistance is breached uptrend cannot be expected. Nifty has formed 'doji' candle stick which indicates indecision in the market.

Chart  of the day

Crude Oil

Crude Oil is in a bullish phase from many trading sessions. The overall trend will remain bullish from short term point of view. However it can face a hurdle at Rs.5230 and once this level is taken out the target will be Rs.5260.

Open Positions

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	516.35	-5.65
Nifty 5300 PE	Long	57	51	-6

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Rel Infra	522
SBI	2015	2065	40

Nifty Medium Term Trend

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

Important Results :

Tata Motors , Tech Mahindra , Ranbaxy , IOC , HPCL , Adani Enterprises , Apollo Tyres etc

 

Thought for the day

Place a monkey in a cage it is same as pig. Not because it isn't clever and quick but because it has no place to freely exercise its capabilities.

Market updates for 08/08/2012

Nifty hourly chart

Today Nifty made a flat opening at 5295. But gained momentum in the later part of the trading session. Banks , IT and Real Estate performed well in today's trading session. Nifty closed at 5336 up by 54 points.

In the hourly chart of Nifty you can notice that Nifty has breached every resistance except 5350 which is the high of past 40 trading sessions. If this resistance is breached then Nifty can easily achieve 5400.

 

Nifty daily chart

The good news is Nifty has closed above 5300, it is trading above 200 , 100 , 50 DMA , MACD and RSI are indicating possibility of reaching 5400. But Nifty has tested 5350 many times before (indicated in chart). Above 5350 the expected targets are 5400-5440. 

Open Positions

Scrip	Type	Price	CMP	P/L
SBI	Long	2015	2061	46
Nifty 5300 PE	Long	57	57.35	0.35

 

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Bank Nifty 10500 CE	214	255	40
Bombay Dyeing	504	525	21
Nifty 5300 PE	57

Nifty Medium Term Trend

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

Important Results :

ABB , Aban Offshore , Bharti , Pantaloon , Tata Power , M&M , PFC

Thought for the day

To remain discipline and calm while waiting for disorder to appear amongst the enemy is the art of self possession - Sun Tzu

Market updates for 07/08/2012

Nifty Hourly chart

Nifty made a gap up open of 45 points and managed to sustain at higher levels. It has broken important resistance at 5250 but was unable to breach 5300. Reliance Ind was a big gainer in today's session. It gained nearly 6%.

Important resistance levels for Nifty are 5300-5330 and support is at 5250. The short term trend remains up.

Nifty daily chart

Nifty has reached its important resistance level. Nifty is likely to consolidate in this region since it has made a large move in today's trading session. Unless Nifty breaks 5300 on closing basis we cannot expect further rally in Nifty. MACD and RSI are indicating that Nifty has potential to break 5300. Reliance group , Private sector banks , auto and capital goods sector are supporting the market very well. The trend of other index like Bank Nifty and CNX IT is up. But to increase the probability of profitable trade wait for a sustainable breakout.

Chart of the day

Bank Nifty

Bank Nifty has bounced back from ascending trend line support at 10200. It can face resistance  at 10470. Expected target for Bank Nifty is 10600.

Open Positions 

Scrip	Type	Price	CMP	P/L
SBI	Long	2015	2018	3
Bombay Dyeing	Long	504	528	24
Bank Nifty 10500 CE	Long	214	194	-20

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Bank Nifty 10500 CE	214
Bombay Dyeing	504	524

* Bombay Dyeing partial profit booked

Nifty Medium Term Trend

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

Thought for the day

There is no shame in not knowing ; the shame lies in not finding out.

Market update for 06/08/2012

 

Nifty hourly chart

On Friday Nifty made a gap down open but took support at 50 HMA which is at 5170. Nifty shut shop at 5215 down by 12 points.  It is still in the narrow trading range of 5160-5250.If Nifty breaks above 5250 then the target is 5300. 

 

Nifty Daily Chart

From past 4 trading sessions Nifty is consolidating. 5160-5130 is very important support levels for Nifty and unless these levels are broken sustainable downtrend cannot be expected. MACD on daily chart is indicating  buy and 5300 looks like an achievable target. If Nifty reaches 5300 don't be in a state of euphoria but book partial profit as it is a strong resistance level. You can re enter above 5300 and expected targets are 5350-5400.

Nifty Weekly Chart

Last week Nifty tested 5085 which is 50WMA and bounced back. This trend is likely to continue till 5300.

Chart of the day

Bombay Dyeing

Bombay Dyeing was in down trend from past one month. It made a low of Rs. 478 and bounced back to Rs.506. It has managed to sustain above the descending channel and now this channel is acting as support.On Friday is made a low of Rs.494 which is nothing but upper part of the channel. This company also has strong support at Rs. 490 . The  correction seems to be over and now it is expected to start a new uptrend.

Open Positions

Scrip	Type	Price	CMP	P/L
SBI	Long	2015	2005	-10
Bombay Dyeing	Long	504	500	-4

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Tata Mot 220 PE	7.5	9.5	2
Bombay Dyeing	504
Rel Infra	506	504	-2

Nifty Medium Term Trend

Trend	Down
Initiation Date	26/07/2012
Initiated at	5043
Low since change	5043
Reversal if closes above	5285

Thought for the day

Trading isn’t love. Stocks don’t love you back. They don’t even know you own them. Falling in love with a stock may not hurt you; it may kill you. That’s why you have stops or other forms of risk control – such as diversification, asset allocation, options, and hedging.