Reigning The Nifty - 28th October, 2009

Daily Chart

• Big Black Bearish candle on high volumes.
• Close under 50 dema. 
• Close below strong support of 4900.
• Next support comes at 4785. 
• Channel break target is at 4750. 
• The neckline of the inverse head and shoulders is at 4700. 
• Incidentally 4700 is the 38.2% retracement level of rise from 3918 to 5182.
  
• Daily oscillators have moved below their August lows corresponding low of Nifty is 4353.Remember momentum precedes price. So a test of this level is very much possible.
• Daily stochastics in oversold region. so a bounce could be on the cards.

Half Hourly Chart

• Supports are at 4785-4760-4700-4575.
• All half hourly oscillators are in oversold region and the Rsi14 has shown a positive divergence.
  

Seven days of continuous fall and a loss of 350 Nifty points. Oscillators are oversold and important supports are approaching. Caution on shorts as a bounce may be in the offing.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com