Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, April 20, 2009

Reigning The Nifty --21st April , 2009

Nifty Daily Chart

Nifty Half Hourly Chart

Once again a volatile day with no direction. There was just one indication which may give some direction and that is today's action made a lower low and a lower high . This shows that bulls have lost the will to push prices higher and that the bears did manage to push prices lower. So today's brownie points goes to the bears.

The "Inside Day" break was not decisive as it was only intra day, but a break nevertheless. There was no attempt to even scale the inside day's high of 3490 , leave alone the previous day's high of 3511. Thus we have a lower low on 3 consecutive days. This downtrend line joining the lower highs and the trendline joining the lower lows has formed a consolidation/distribution pattern. A break form either of these trendlines will help us decide whether we are in for a correction or whether it was a consolidation for further upmoves to reach the targets of 3648-3740 as discussed earlier and marked on the daily charts.

The Rising wedge break has already given us reasons to short and now there are a series of bearish candle patterns . So one should book profits/cut losses in their longs. Shorts can be taken once we break the support of 3307.

I am not happy with what I have written as I am not able to give an outright buy or sell call. But I am satisfying myself by saying I am still right because the Nifty action at the moment is confusing !!

Supports are at 3354-3336-3330-3307. All levels are marked on the charts for reference. Resistances are at 3440-3456-3551.

Happy Trading !!

Lakshmi Ramachandran


Olive Tree said...

Hi, it's a very great blog.
I could tell how much efforts you've taken on it.
Keep doing!

Anonymous said...

Hi Mam,
In the half hourly chart, the 100% line is not visible, hope it would be visible from now on, this would make the picture complete.

Lakshmi Ramachandran said...

i did not understand the 100%??

Anonymous said...

In the fibo levels 0 to 61.8% are visible, if you could include the 100% line also it would helpful.
Also if you could consider giving recommendations on individual stocks, thanks.

Lakshmi Ramachandran said...

ok will