Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, March 7, 2011

Reigning The Nifty - 7th March 2011



Weekly Chart




The red trendline continues to be strong resistance and offers resistance at 5571 for the coming week.5552 which was discussed last week too is proving difficult to cross. However it was a positive week breaking out of the equilateral triangle shown last week.All this encased in a possible  bear flag , shown in green, with support at 5280 and resistance at 5568.Bear flags are rallies within a downtrend and invariably break down sooner or later. Breaking out of the bear flag will face strong resistance at 5723.


Daily Chart




Daily charts show 200 dema and 50 dema , which are bearishly aligned  as good resistance , now at 5601  &  5593 respectively.. Breaking this resistance will take Nifty to 5645-5754  else 5522-5504. Rsi 14, Macd and OBV have moved above their february hump corresponding to Nifty's  5599.The 5 dema is now bullishly aligned with the 10  &  20 dema indicating short term may be mildly bullish.


Half Hourly Chart




Half hourly charts show a higher bottom at 5232 and a higher high at 5608. A double bottom and a double top formed. Crossing 5600 will confirm a double bottom and a fall below 5232 will confirm a double top. Whichever way it breaks will give a move in that direction of 370 points.The red neckline resistance is at 5675.

The short term seems to be mildly bullish considering,
  • A higher top higher bottom on half hourly charts
  • 5 dema being bullishly aligned with the 10  &  20 dema

  •  Daily oscillators and OBV mild bullishness.
  • Breakout from falling wedge on daily charts.
One could be cautiously long till  5232 is broken decisively.


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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

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