Reigning The Nifty - 6th August , 2010

 Daily Chart

Half Hourly Chart

The Nifty continued to make a higher high and higher low candle but failed to sustain the new highs made at 5487. The caution that one needs to be hedged on longs paid off. The bias is still  up though today's last hour correction must have unnerved the bulls.The advance declines were 1:1 .The volumes flowing into advancing stocks has been declining since the last few days.

The negative divergence on daily oscillators  persists.The 20 dema offers support at 5395.

Nifty has taken support at the 50 ema on half hourly charts at 5447. The short term up trendline has been broken indicating more fall. The fibo supports are at 5435-5418-5401. The 200 ema  has support at 5410.Strong support at 5349. Only a break of this level will turn the short term trend down.

Nifty gave a false breakout from the range high of 5477 on candle as well as line charts.Today's fall was on higher volumes than that of yesterday's rise.The rise from 5210 onwards has been on falling volumes. The last few days action shows nervous and confused market players.

Risk management at this point of time is most important. Play light and play safe.

 

Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com