Reigning the Bank Nifty - 17th January 2011

 Weekly Chart

61.8% retracement level of the last rise from 8806 to 13304  has been broken.The 23.6% retracement level of the entire rise from March 2009 has also been broken. The fall remains within the falling channel which now has support at 10050. Oscillators have broken their lows corresponding with Bank Nifty's 8150 .The 61.8% retracement level from this low is at 10135.Supports below these lows of 10135-10050  are at 9478-8806-8310-8150-7120. This would be an almost 50% fall and a good oppurtunity to start nibbling.

Daily Chart

Breakout trendline shown in red has not yet been violated.Support on it is at 10365.Positive divergence on Macd has been violated  but the positive divergence on OBV is intact.Holding these levels  can encourage bulls.

Resistance at 11080-11508-11850-12194.

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com