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Friday, September 17, 2010

Reigning The Nifty - 17th September, 2010




 Daily Chart





Daily Chart II




The bears are rejoicing though it was just the first black candle in this relentless rally from 4349. The fall was on good volumes but the breadth was only marginally negative. The bulls feel that it is just a breather. The higher high and higher low sequence is still intact.  The oscillators need to cool down a bit after being  overbought. 

The fact that the Nifty is nearing it's earlier top and the relentless rally from 5349 had both the bulls and bears wondering nervously about further movement . Today's action , was unnerving in such a situation. A negative open , recovery, a sharp  fall followed by a sharp rise to a new high above 5901 and a fall again to a newer low for the day.The intraday chart shows it all.


Half Hourly Chart




The channel break target is at 5773 coinciding with the 161.8% fibo level of rise from 5820-5901.It is also the 23.6% retracement level of rise from 5349 to 5901.This should be good support.5790 is support on the uptrendline from 5349.

Supports are at 5772-5690-5626-5560  Resistance at  5837-5850-5860-5870-5901.



Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

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