Reigning The Nifty - 25th August, 2009

Daily Chart




Half Hourly Chart

The inverse head and shoulders target of 4632 was achieved very easily in the morning session. With this the Nifty has closed above it's resistance at 4619 and closed above it. There was strength throughout the day with hardly any correction except some profit booking towards the end which was insignificant. Volumes though on the lower side, was better than the last two trading sessions. Advance decline was very encouraging to the bulls. The sensex has closed above the neckline of the inverted head and shoulders formation, which was proving resistance at 15580. The Nifty however has yet to cross the neckline around 4652. However the more important and strong resistance would be at 4731, the high of this rally which started in March 2009. Once this is overcome we could use the neckline to arrive at the target. Meanwhile the target at hand is that of the falling wedge breakout shown on half hourly charts of 4882.

The Daily oscillators are moving up once again. Moving Averages on all time frames are now bullishly aligned. The half hourly oscillators are overbought and this may lead to some correction.

I would remain long and buy on dips with a stop loss 4500.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com