Reigning The Nifty-Week ended 9th April,2009

Weekly Chart

Daily Chart

Halfy Hourly Divergence Chart

Half Hourly Chart

Good Week . Up 131 points. This is where positional traders score over the intra day chameleons. These chameleons must have been tired changing colors in the 3 day week. The "buy on dips" is easier said than done in such volatile times. Before you can say d-i-p dip the dip is over! So the diciplined positional traders who had their indicators in place and have followed them scrupulously are the only ones who made any profits.

Bullish ?

• So the weekly charts are strong.


• The daily charts are strong too with just one big down day in the entire rise !

Bearish?

• Well, each down leg has consumed 10-11 weeks and each up leg 5-7 weeks.This up leg is already 5 weeks old.


• On daily charts negative divergence is seen in the macd histogram, and other oscillators are overbought.


• The 200dema has proved resistance on last trading day.


• Doji candle on daily chart, after a prolonged uptrend conveying that the trend has peaked or is close to peaking .


• The intra day charts have started showing negative divergences and the rising wedge looks threatening.

Choose- तेजी या मंदी ?

Ok ! dont look so confused !

तेजी of course ! But ----

So what should one do?

Positional longs from low levels can shift the stop loss to the last low of 3307 which was tested twice during the day. Thus the third time it is tested will either make a solid support or a decisive break. This will be first sign of weakness and agressive chameleons could short with stop loss of recent high 3401. If you are a bear in hibernation, wait for decisive break of the rising wedge which has supports for 13th April at 3283-3335.

Also look for a down day to confirm the bearish warning of the Doji. After a long uptrend or downtrend , the appearance of a doji candlestick can be an ominous warning sign . They can often mark major turning points. So be prepared to take appropriate action in case we have a down day on 13th.

Dont forget to place your stops as this market is neither faithful to the bear nor the bull.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com