Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Saturday, March 28, 2009

Reigning The Nifty --30th March,2009

Nifty 30 Minute Chart

Nifty Daily Chart

Daily Nifty Fibonacci Chart

The triangle breakout on thursday, 26th March was decisive with a huge white candle and a follow up buying on friday. This throws up a target of 3740 as discussed in the weekly update. But before getting too optimistic, we have to see the down trendline joining lower tops from January 2008 , scaled . This resistance stands at 3115 for Monday, 30th March. A series of resistances are there at 3147-3167-3240-3450-3740, all marked on the graph.

The oscillators have not shown any negative divergence and are showing strength inspite of being over bought. However huge negative divergences are seen on half hourly charts which may lead to intraday corrections. Moreover a rising wedge formation can be seen on the Line Chart, which is a bearish formation.

Immediate support is at 3035--triangle upper trendline .The fibonacci support levels are at 2987-2900-2833-2762.
Trade longs with appropriate stop losses as the time is ripe for a correction and don't trade short till a proper reversal is signalled.

Happy Trading !!

Lakshmi Ramachandran

1 comment:

Rajesh Shah said...

so you analysed rightly once again. Nifty down by 75 points at 10-10 am !