Reigning The Nifty - 12th August , 2009

Half hourly Chart

Daily Chart

Today was an up day but the pullback was not very impressive.

• Volumes were low and the Advance Declines only marginally positive.
• Nifty broke above the upper trendline of the channel intraday but failed to close above it.
• It is the second consecutive day that 4500 levels where the 20 dema and the 200 period ema on half hourly charts is, is proving too difficult to climb.
• The daily oscillators have not done much today to change my view, though the Rsi 14 has moved above the 50 level. The intra day oscillators have corrected the oversold condition to some extent.
  
• The silver lining in the cloud is that the support around 4380-4400 held firmly for the second day.
• The half hourly chart shows a triangle formation indicating break could be in any direction, though since the lows are rising the break may be on the upside.
  

Nifty has formed a range of 4400 to 4510 in the last two days. A break from this range will give a 100 point move.Till this happens it will be difficult to trade .
The short term trend is down and one should look for oppurtunities to go short with a stop loss of 4600.

Resistance 4487- 4527-4565-4609
Supports 4420-4325-4287-4230


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com