Reigning The Nifty 10th May, 2010

Weekly Chart

Daily Chart

Half Hourly Chart

Weekly    

• Bearish black candle breaking and closing below the trendline from March 2009 lows.
• Volumes were good and breadth very negative.
• Oscillators are weak below the 50 level and macd is once again in sell mode.
• Trendline support at 4814

Daily

• Fall continuously on all days of the last week on increasing volumes and extremely bad breadth.
• 61.8 % fibo support at 4955 of rise from 4675 . 
• Oscillators weak and stochastics in oversold zone in positive divergence.
• Taken support on trendline from 3918. Must trade above 4990 for a bounce from the trendline.
• 200 dema at 4880 coinciding with the 50% fibo level of rise from 3918  and the 200dsma is at 4962 almost coinciding with 61.8% fibo level of rise from 4675.

Intra day

• Oscillators showing positive divergence.
• A falling wedge and inverted head and shoulder pattern seen formed in the last two days action.
• All emas bearishly aligned.

The nifty has fallen sharply for the last 5 trading days without respite.The daily and weekly oscillators are weak and indicating further fall. The intraday charts though are showing positive divergence and very minor bullish patterns which could develop into a small bouce.Strong supports at 4960-4955-4880 supports this possibility.

Trade above 5046 is necessary for further bullishness.Resistance is at 5150.

The trend is down and one should look for oppurtunities to short on rallies.

Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com