Reigning The Bank Nifty 14th December 2012

Daily Chart

Half Hourly Chart

Today, the Bank Nifty did weaken further but remained within the Inside Day range.An Outside Day was made today as today's range engulfed yesterday's range.This series of Inside and Outside Day's shows confusion about whether the uptrend would continue or not.Breadth has been negative since two days.Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the  80 levels also indicates weakness.The Bank Nifty has resisted at the rising wedge on daily charts and is on it's way down.

Break of 12238 low made on 11th and the low of 12143 is still unviolated which indicates this may be a consolidation.The red flag forming also indicates the same.Supports are at 12146-12110 which should hold if our assumption is correct.The correction  is seen happening in a mild way. Only if the support line of the larger rising wedge on daily charts breaks will the uptrend from 9814 be in danger.

Possible supports and resistance marked on the charts.

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Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com