Reigning The Nifty 23rd July 2012

Weekly Chart

Daily Chart 

Half Hourly Chart 

The weekly candle broke the low of the outside day pattern and indicated a reversal of the uptrend from 4770 was in place.The lower high made showed there was no attempt to take the Nifty higher.Oscillators have turned down showing weakness.The next leg down of the red triangle seems to have started.

The gap on the way up made on thursday on daily charts was filled fast showing weakness.The flag which is a bullish continuation pattern, forming is keeping the bulls optimistic.The 50 and 200 day ema have converged at 5163 levels on the verge of giving a bullish cross.Support at the flag is at 5142.The range bound Nifty is throwing up bullish as well as bearish patterns keeping one guessing about the final direction.

Half hourly charts show gap at 5267-5300 as strong resistance and  gap at 5191-5149 as strong support.

Only a decisive move above or below the levels will give rise to some directional move.With the weekly showing weakness a sell on rise till 5348 is scaled would be the strategy.

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com