Reigning The Nifty - 20th August , 2009

Half Hourly Chart

Daily Candle Chart

Daily Line Chart

Observations

• Moving Averages on intraday charts all bearishly aligned. On daily charts the short term averages are bearishly aligned viz.5/10/20 dema.
• Nifty traded below 50dema intraday but closed above it.
• Nifty traded below the uptrendline from March 2009 lows intraday but closed above it. Closing below it would be very bearish.
• Daily oscillators are weak and the stochastics has entered the oversold zone.
• The neckline shown in pink on half hourly charts was once again tested but Nifty managed to stay above it. Break would give a downmove of around 350 points.
• Intraday oscillators are showing minor positive divergence.

Nifty is deteriorating by the dayand looks ripe for a breakdown soon. Bears are slowly but surely getting the upper hand.However till Nifty stays in the range of 4350-4731 trade will be choppy and only a break in either direction can give a respite from the seesaw. For the time being be light and trade with strict stop losses.


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com