Reigning The Nifty - 31st July,2009

Half Hourly Chart

Daily Chart Showing Channel Target

Daily Chart

• Rangebound and volatile between 4500 and 4600 since last 5 trading days. I am not counting the lows till 4421 as they were swallowed without leaving much trace.
  
• Daily stochastics in sell , Macd in buy and above zero line and RSI14 turned up again and above 50 level. Intraday oscillators strong .
  
• Back above the downtrendline from January 2009 highs. If maintains above it then Nifty could target 5225.
• Moving averages on all time frames are bullishly aligned .
  
• Today was a bullish engulfing candle, which, though appears bullish could be a signal that the trend is about to end as the last of the herd may be buying from the smart traders who are selling. "A big bullish Engulfing pattern observed at the top of a trend usually represents the last gasp of the trend." Tomorrows action should confirm whether it is the last gasp or a fresh breath of air.

Tomorrow is a weekly as well as monthly closing which would help us get a broader view of the action of this month. All time frames are bullish now and i would remain long with a stop at 4380 on closing basis. Keep light till the 4600-4693 levels are taken out decisively.


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com