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Friday, May 28, 2010

Reigning The Nifty - 28th May, 2010



 Daily Chart



Half Hourly Chart




Nifty broke out decisively, on good volumes, from the falling wedge with a huge bullish candle giving a target of 5380. Two huge bullish  candles in a row and the follow-up buying instills confidence that bulls may have found their feet again. The close below 200dema was only for a day. Nifty , initially in the red, took good support exactly at the 200 dema and closed at the highs.

Daily oscillators are moving up from oversold zone and the macd has given an uptick.OBV has crossed it's peak which corresponds with Nifty's peak at 5212. This is a positive signal.

On half hourly charts all emas are bullishly aligned except with the 200ema which proved resistance today at 5013. Nifty must trade above this average consistently to turn the trend bullish.The oscillators though strong have reached overbought zone and stochastics has shown a minor negative divergence.

The fall from 5400 is still to prove itself  different from the earlier corrections in this rally pointwise. A fall below 4897 which is today's low and the 50% fibo level of rise from 4786 will weaken the Nifty once again.

The weekly support was at 4833 and resistance at 5047. Refer to my weekly post  for  the  chart.

The Daily support is at 4963-4924 (strong support) and resistance at  5022-5047-5102.



Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

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