Reigning The Nifty 30th July 2012

Weekly Chart 

Daily Chart 

Half Hourly Chart 

Last week I said "The weekly candle broke the low of the outside day pattern and indicated a reversal of the uptrend from 4770 was in place". The fall continued this week with a gap downbelow the 40 week ema and the 200 and 50 day ema.Weekly oscillators show more weakness to come.

The daily charts saw all the gaps made on the way up filled.

Support taken at the crucial zone of 5015-5040 area temporarily.The pullback expected materialised but was very weak and resisted at the 50 day ema.Daily Rsi14 has taken support at the level corresponding with Nifty's 4770 level and turned up. Stochastics shows a minor positive divergence which may lead to some more pullback.

Gap areas 5164-5205 and 5267-5306 will remain strong resistances to contend with and only a close above it will bring in bullishness.Till this happens the rising wedge target of 4750 is very much achievable..

Half hourly charts show a rising wedge formation which is bearish in nature.

Trade as per supports and resistances marked.

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com