Reigning The Nifty - 14th August , 2009

Half Hourly Chart

Daily Chart with Rising Wedge

Daily Chart

Yesterday's bullish hammer was proved very bullish with a big bull candle today. The Advance Decline was hugely in favor of the advances. The resistance of downtrendline from January 2008 highs was so very easily scaled and the target of 4625 given yesterday was almost reached at 4614. Volumes were low.

This fast run up should have left the market breathless and one needs to be cautious . The daily Oscillators have moved up once again but Macd yet to give a buy. The rising wedge is threatening with resistance at 4737. Only a decisive break above the upper trendline of the wedge will negate the bearishness of the wedge. I have redrawn the neckline of the head and shoulder which I have been showing for sometime.

The half hourly oscillators have reached overbought levels. Tomorrow is the last day of the week and I will review further after studying the weekly candle. Meanwhile trade light with strict stop losses as the trend can change frequently when approaching the strong resistance of 4731.
Supports and Resistance levels marked on charts.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com