Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Tuesday, April 21, 2009

Reigning The Nifty- 22nd April,2009

Nifty Daily Chart with Time Study

Nifty Daily Chart

Nifty Half Hourly Chart

The consolidation / distribution continues and I am waiting patiently for confirmation whether we break up or down. This rally has had 3 breathers and we are into the third one. The earlier 2 lasted for 3 days and 4 days as shown on the daily chart , including the day of the high. The present breather has completed 4 days. So today's action may be crucial to forming an opinion about future movement.

There is just one difference in the present breather and that is it is downward sloping whereas the other two were equialteral triangles. This means we are making lower lows too, unlike the other two breathers.The formation looks like a falling wedge with resistance at 3400 and support at 3297 for today.

A long legged doji was formed for the second day in a row with a lot of volatility depicting great indecision and thus confusing us about the direction. At extreme levels this is a sign of reversal. The daily oscillators have started losing momentum and are moving down from over bought levels. Keep the break of rising wedge in 30 minute charts discussed earlier, in mind.I would be on the lookout for a sell sign more than a buy sign at this moment in time.

Let us see if the market finally decides where to go today.

Happy Trading !!

Lakshmi Ramachandran


Anonymous said...

Your lower target 3297 was spot on. Congratulations.When should one buy the dips and when should one sell the tops? like for example today at what level should one have gone long/short? In the cash segment i sell at the resistances and buy at the supports and i am prepared to wait as I have been doing the same stocks since a long time now, but in fno i donno if it is the same. What indicator setting do you recommend for intraday (fno) and delivery based in the cash segment.

madhu said...

As the wedge breake down has been confirmed, why shall one not wait for breakdown target of 2865?