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Thursday, February 25, 2010

Reigning The Nifty - 26th February, 2010




 Daily Chart

 


Half Hourly Chart




Should I "copy paste" yesterday's commentary? Yes , why not? After all the Nifty traded exactly at yesterday's levels. So here goes --"copy,  paste"  with a comment or two added.

  • The Nifty was range bound in the same range made yesterday on increasing volumes.
  • The wide range since 17th Feb of 4930-4805 needs to be broken to give direction to the market.
  • Oscillators still neutral.
  • 20 dema resistance respected.
  • Uptrendline from 4675 broken.
Nifty traded below the uptrendline/channel  from 4675 all day and closed below it.This is bearish and gives a move of 160 points which is the height of the channel shown on daily charts. But a break of a trendline/channel, to give direction, should have the proper thrust which this break lacks. I would give more importance to the "range break" .
So copy paste again.
A break above 4885 will lead to test of 4930-4951 and a break below 4833 will lead to a test of 4805-4785. Follow up buying  or selling beyond these levels will give a 100 point move whichever way the market breaks out.

Strategy of holding hedged longs with a stop of 4772 continues.
 

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

1 comment:

Kiran Bhatia said...

I am regular visitor here. I am trying to learn TA from your views.
Thanking you for this noce work.

-KB
kiran.052000@gmail.com