Market updates for 21/11/2012

 

Nifty daily chart

 

 

Nifty has once again made a flat close around support zone 5575. In yesterday's post we had estimated that 5585-5630 are the resistance levels. So even though Nifty made a high of 5613 it couldn't sustain at those levels.

 

Traders should also note the point that yesterday Europe and US markets have rallied significantly but Indian and other Asian markets didn't participate in the rally. Many Index stocks have breached their important support level and I am expecting Nifty to reach 5500 shortly . However reversal of the short term trend will be close above 5630.

 

Nifty medium term trend

 

Trend	DOWN
Initiation Date	16-11-12
Initiated at	5574
Low since change	5549
Reversal if closes below	5800

 

 

Thought for the day

 

Real difficulties can be overcome. It is the imaginary ones which are unconquerable.

 

 

 

 

 

 

Market updates for 20/11/2012

 

Nifty daily chart

 

 

After breaking support at 5630 Nifty has taken support around 5575. In today's trading session it made a low of  5549 but bounced back and closed at 5576. Important resistance for Nifty will be 5585-5630. If Nifty closes above 5630 then that could be the reversal of short term down trend.

 

Even though primary trend of Nifty is up there is   a lower high formation in daily chart which is a matter of concern. In fact trend line support at 5575 is the level which is supporting Nifty all other technical indications are showing down trend.

 

Chart of the day

 

SBI daily chart

 

 

Few days back bearish strategy in SBI was executed around Rs.2150. On Friday's trading session it has breached an important trend line support. As long as SBI is below Rs.2145 trend will remain down.

 

Nifty medium term trend

 

Trend	DOWN
Initiation Date	16-11-12
Initiated at	5574
Low since change	5549
Reversal if closes below	5800

 

 

Thought for the day 

 

One moment of patience may ward off  great disaster. One moment of impatience may ruin a whole life.

 

 

 

Market updates for 19/11/2012

 

Nifty daily chart

 

 

Nifty has finally breached the support at 5630 and closed at 5574 down by 57 points. Now it has very marginally closed below the trend line support. Further confirmation of down trend will depend on Monday's close. Technically Nifty may reach 5530 in short term and reversal of the trend will be close above 5630.

 

Nifty weekly chart

 

 

In yesterday's post it was said that if 5630 is breached on weekly basis then Nifty will test the ascending trend line. Whether Nifty has breached the trend line or not is debatable as this trend line can be drawn in many ways. However today's close below 5580 is the beginning of medium term down trend and so we have initiated bearish position in Nifty.

 

Nifty medium term trend

 

Trend	DOWN
Initiation Date	16-11-12
Initiated at	5574
Low since change	5574
Reversal if closes below	5800

 

 

Thought for the day

 

Every one is a moon and has dark side which he never shows to anybody. 

 

 

 

 

 

Market updates for 16/11/2012

 

Nifty daily chart

 

 

As expected Nifty has reached the support level which is at 5630. Clearly there is a weakness in the market however downside breakout may not happen immediately as Nifty has reach a level where there is multiple support. It is safer to short Nifty if it closes below trend line support which is around 5570.

 

Nifty weekly chart

 

 

Consolidation pattern is clearly visible in weekly chart. From past 8 weeks Nifty is unable to close above 5740 or below 5630. Even if Nifty closes below 5630 on weekly basis it can take support at ascending trend line and so there is every possibility that the breakout from this zone will be a false breakout. These are the various possibilities  lets see what happens in coming days.

 

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	Long	5792	5647	-7250
Nifty Nov 5800 PE	Buy	73	157	4200

 

Positions squared off 

 

Scrip	Buy Price	Sell Price	P/L
LT Nov 1650 PE	51	50	-250
LT Nov 1600 PE	28	24	1000
Total			750

 

Thought for the day 

 

A closed mind if closed long enough , can be opened by nothing short of dynamite.

 

 

 

 

 

 

Market updates for 15/11/2012

 

Nifty daily chart

 

 

 

Nifty is still in a narrow range and it is not giving any hint about when it is going to break out of this range. Since Nifty has failed to sustain above 5720 the logical target will be 5630.

 

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
LT Nov 1650 PE	Buy	51	56	1250
LT Nov 1600 PE	Sell	28	27	250
Nifty Nov Fut	Long	5792	5673	-5950
Nifty Nov 5800 PE	Buy	73	140	3350

 

 

Thought for the day

 

If trading is very easy then everybody will be doing it.