Half Hourly Charts
Daily Chart
Today we have a small bodied candle with a higher top and higher bottom on average volumes. This also brought the Nifty below the
4693 top which was so eagerly awaited to be overcome, which is a negative.The action has made the negative divergence on daily charts more apparent. The dotted channel on daily charts is more like a rising wedge as though it is not very converging,
it is converging. Be cautious at the 4636 support on this wedge. Breaking this support would open the threat to breaking the red channel uppertrendline which offers support at 4511. Breaking this means we may as well be testing 3918.
The rising wedge on half hourly charts was decisively broken after hitting resistance on the uppertrendline at start of trade.The technical target is around 4400 which coincides with the low of 4420 made on 29th July 2009. To negate this Nifty needs to trade above 4715.
Be cautious on longs as Nifty has had a false breakout above 4693. Shorts if any should have a strict stop loss of yesterday's high at 4731.
Upside targets remain at 4693-4731-4788-4818.
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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