Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Tuesday, June 23, 2009

Reigning The Nifty - 24th June, 2009

Nifty Half Hourly Chart

Daily Nifty Chart showing channel target

Nifty Daily Chart

Todays candle has a long lower shadow depicting good support at todays lows. The lows made in the morning panic was not visited again. It was a steady upmove (with a little volatility) after that, clocking a hundred and twenty four points from the lows.

Daily Charts
Daily charts show that the Nifty is not yet in a downtrend. Only the 5 day ema is not aligned bullishly. The nifty has taken support today on the newly drawn trendline from 2539 lows. Though the 23.6% retracement levels at 4185 was violated intra day, close is well above it. If the nifty manages to trade above 4227-4250 then a test of 4300(5dema)-4342 (20dema)-4362(10dema) is possible. The 50 dema offers support at 4026.

The RSI 14 and Macd though in sell mode have not reached oversold levels. The stochastic has given a buy and moved just above the 20 levels. This indicates we may have a rally till the stochastics corrects it's oversold status. Trading above the falling channel resistance of 4251 will give a upward target of 4490. This coincides with the 61.8% retracement level of the fall from 4693 to 4143.
In case the fall continues we may find support on the channel at 4006 levels.

Half Hourly Chart

Half hourly charts show positive divergences on all oscillators. The Nifty has been moving down in a channel . Is the red channel indicating a U turn? The nifty needs to close above 4223 tomorrow for that.

Trade with caution.

Happy Trading !!

Lakshmi Ramachandran


madhusudan said...

Crossover of which of the emas gives a better positional reversal signal (i.e may be relied upon for taking short or long position on eod basis) irrespective of other technical parametres?

Lakshmi Ramachandran said...

madhusudan ,this has to be arrived at by the trader himself by backtesting. It took me 5 years of hard labour and 18 hours a day to come to this conclusion. please dont rely on others tested methods. do it yourself as it has to suit your temperament.

madhusudan said...

may we get your WROUGHT findings?
Hope you will disclose.
So far as "please dont rely on others tested methods" - I swear I will rely on your findings.