Reigning The Nifty - 30th September, 2009

Daily Chart

 Half Hourly Chart

 An up day with futile attempts to cross the previous high of 5036. The break of the rising wedge shown in red on daily charts has led to a sideways move . The daily oscillators remain much the same due to the sideways move.

The intraday moving avergaes are all once again bullishly aligned. The half hourly stochastics has once again reached overbought  region. The Nifty gave a breakout above the falling channel shown on half haourly charts but remained sideways with a downward bias.The analysis remains the same. Look for a break below 4904 for further downside and a break above 5036 for further upside.

The trend is up till the trendline from March 2009 lows is not violated. Level for tomorrow is at 4835.
Tomorrow is the monthly closing and staying above 4600, which is a good possibility, bullishness  remains.

The Put Call ration decreased further to 1.22  As mentioned earlier, the decrease in put call ratio is  indicates confidence among market players of the upmove continuing. This is a negative as increase in positive sentiment works as a contrarian indicator, indicating a possible fall. Further, negative divergences on oscillators and very low volumes are cautioning one to be light and keep dicipline while trading.




Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - Weekly , 29th September, 2009

A Doji on weekly charts after crossing the 5000 mark and failing to sustain above it.

Weekly Chart 1

Weekly Chart 2

This Doji was consturcted by four days of  a  hesistant  fall  forming  a  flag , shown on daily charts.

Daily Chart

Magnified view on the half hourly charts tells us the previous low of 4932 has been broken and a lower bottom  at  4904 has been made. The pullback after this created a lower top at 5016 which will be confirmed if the lower bottom of 4904 is broken.

Half Hourly Chart

Momentum

Weekly Oscillators have not changed much, being overbought and showing negative divergence.
Daily oscillators are working off the overbought condition after giving negative divergence.
Intraday oscillators reached oversold zone after the mild correction in the last few days. They have turned down again after making a weak  attempt to move up from oversold zone.

Moving Averages

Moving averages on Weekly and Daily charts are bullishly aligned. On half hourly charts the 5,10,20 & 50 period moving averages are bearishly aligned.

Sentiment Indicators

Market breadth was positive for the week.
Volumes were very low.
Put call ratio which was at  1.73  last week decreased to 1.26 this week.


Bullish Price Pattern

Inverse head and shoulders breakout has been maintained for the third week.Therefore, the neckline , shown in pink in Chart 1 , becomes strong support. The level for this week is at  4702 .

Bearish Price Pattern

Rising Wedge forming  since 26th June 2009 shown in Chart 2 in red dash line. This will be invalidated if Nifty breaks out above the uppertrendline which offers resistance for the week at 5210. Support at the lower trendline is at 4892.

My View

The Daily and Weekly charts are still showing a strong uptrend with moving averages  bullishly aligned and maintaining a higher top higher bottom scenario.Strong support  is at 4750,  being the lower trendline support of  upward channel shown on weekly chart 2.The uptrend is intact till the break of this trendline.

The decrease in put call ratio is considerable and  indicates confidence among market players of the upmove continuing. This is a negative as increase in positive sentiment works as a contrarian indicator, indicating a possible fall.The overbought position with negative divergences on daily and weekly charts make the Nifty vulnerable to a fall.

As mentioned earlier , on half  hourly charts,  support is at 4904 and resistance at 5016-5036. Break above the resistance will indicate futher labouring towards highs. Break below support would confirm a lower bottom lower top formation and so  a short trend downmove. 

Trade light and with protection.


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 25th September, 2009

Daily Chart

 

Half Hourly Chart

Lower bottom lower top continued for the second day running. Also the recent support of  4932 was violated. Nifty found support around the 50% retracement  levels of rise from 4783 to 5036, at  4904. Half hourly oscillators are showing strength after reaching oversold levels.Whereas the daily oscillators have moved down from overbought levels with the negative divergences intact.

Still at crossroads and  we will have to wait to see if this is another consolidation pattern forming as shown in half hourly charts. Break below the downtrendline of this pattern will be second confirmation of a bigger fall, first being the violation of  4932. the final confirmation would be when the uptrendline from March lows is broken.

At  close, the Nifty retraced exactly 61.8% of fall from 5036 to 4904. Trading above today's close will open possibilities of a breakout from the consolidation pattern.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 24th September, 2009

Half Hourly Chart

Daily Chart

Sensex Showing Bearish Engulfing Pattern

Sorry for the delay. Had some problems uploading.


A lower top and lower bottom.day.The candle made today is a bearish engulfing pattern .This is clearly visible on the Sensex chart. The uptrendline from 4th September has been violated which has also resulted in  breaking down from the rising wedge shown in red dashed line on daily charts. The target is highest point - lowest point on the wedge, which works out to 5036-4580=456 points. Breakout level  4980 - 455 = 4535.

In between there are strong supports at  4932-4800-4780.

On half hourly charts, the 5,10 & 20 period ema  are in bearish alignment. The stochastics has reached oversold levels and the RSI 14 and  Roc12 are  fast reaching oversold zone. The rsi14 and roc12 have broken below their respective levels made on 14th September. The respective level for the Nifty is at 4787. We could anticipate this level to be broken as momentum preceeds price.

On daily charts oscillators have just about turned down from overbought region. Soif the fall has begun then there is a lot of room for more.

Hope readers heeded to the cautionary notcie which I have been flashing for sometime now and in red yesterday. Aggressive shorts must keep a strict stop loss of the highs made at 5036 till the uptrendline from March 2009 lows has been broken. The trend is still UP so bears beware of the bulls and bulls beware the bears seem to be getting ready to hug you'll.


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 23rd September, 2009

Daily Chart

Half Hourly Chart

 

Climbing the wall of worry continues. Other indicators say nothing new. Strategy remains the same.

""My strategy would be to go long on any dip so long as the uptrendline from March lows is not violated and book profits when you are in profit as the runup has been continuing for longer than one can be comfortable about. Remember : The trend is your friend and at the moment the trend is UP"".

Time to be extremely diciplined . Maintain light positions and tight trailing stop losses.

Caution
Refer the half hourly Chart. The staircase is becoming narrower, so start climbing down when no one else is
When everyone decides to climb down there will be a stampede and you could be  ------
crushed.


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 22nd September, 2009

Daily Chart

Half Hourly Chart

Though technically  the  upmove is intact signs of caution are appearing on the charts.

• The latest action on Nifty from end of August 2009 has formed a rising wedge, shown in red,  visible on both the Daily and Half hourly Charts. Rising wedges are bearish patterns.
• The negative divergences in the daily and intraday oscillators  , which are still intact , seem to be supporting the bearishness of the rising wedge. 
• The rise in price has come on falling volumes.
• The Nifty has made a lower high and lower low on the last trading day.
  

The lower trendline of the wedge supports at  4935.

This is just a caution and on must wait for more evidence to go short on the Nifty. Till now the Nifty has poo-poohed  bearish patterns and this time may be no different as the Nifty has broken out of the flag shown on the half  hourly charts.Resistance is at 5003-5009-5026.

My strategy would be to go long on any dip so long as the uptrendline from March lows is not violated and book profits when you are in profit as the runup has been continuing for longer than one can be comfortable about. Remember : The trend is your friend and at the moment the trend is UP.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - Weekly Analysis

Last week my diagnosis was that the Nifty was not too healthy. The Nifty however continued to  climb the wall of worry and gained  150 points over last week  after briefly touching  the 5000 level.  So, is  the Nifty robust once again ?

Weekly Charts

 

Weekly Chart  1

Weekly Chart 2

Momentum


All oscillators are rising but have been in negative divergence  since  May 2009 when they all hit highs in overbought terriotry and have since then been unable to reach those highs, whereas the Nifty has continued to make new highs

Moving Averages 

The short term and long term moving averages are in bullish alignment since June 2009 and consequently the disparity between price and the moving averages is increasing which increases the possibility of a contraction.

Sentiment Indicators

Market breadth was positive for the week.
Put call ratio which was at 1.66 last week increased to 1.73 this week supporting the theory of  "climbing the wall of worry".


Bullish Price Pattern

Inverse head and shoulders breakout has been maintained for the second week.Therefore, the neckline , shown in pink in Chart 1 , becomes strong support. The level for this week is at  4707 .

Bearish Price Pattern

Rising Wedge forming  since 26th June 2009 shown in Chart 2 in red dash line. This will be invalidated if Nifty breaks out above the uppertrendline which offers resistance for the week at 5150. Support at the lower trendline is at 4800.

My View


Last week I suggested booking out of remaining longs so that the elusive correction would not eat into the profits made . I suggest the same once again of continuing to book profits as and when one is in profits. The Nifty has been moving in an upward moving channel since March 2009 lows, shown in Chart 2 , and is now at the lower end of it .  Unless the  Nifty breaks down from this channel ,the upmove will continue.Support from this channel is at  4670 for the week. Bears should wait for a decisive break of this level to get active.

Meanwhile, the Bulls rule !

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 18th September, 2009

 

Daily Chart

 

Half Hourly Chart

Today's candle is a shooting star on high volumes. This is a reversal pattern, depicting that the highs were unsustainable. Confirmation of reversal will come from tomorrow's candle. Unless the highs of the candle is crossed we may expect a downward trending market.

Volumes were high  Advance decline negative, and daily oscillators in overbought region with negative divergence. Intraday oscillators have moved down after showing negative divergence.nifty may test the uptrendline from March lows which has support at 4728.

Supports at 4783-4728-4580. Resistance at 5003-5103.



Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 17th September, 2009

 

Daily Chart

A bullish candle for the second day in succession. Daily and intra day oscillators are  moving towards the overbought region. The nifty is slowly getting overstretched and will unstretch soon. Be cautious as the Nifty goes higher. Book profits as and when they come your way. I plan to book my profits and wait on the sidelines for  the next profitable move. Maybe I will miss out on a few hundred points but I would rather put the profits in my pocket than give it up in case there is a sudden reversal.



Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 16th September, 2009

 

 

 

 

 Half Hourly Chart

 

Daily Chart

Climbing the wall of worry continues. What a breakout and one which sustained! The huge bullish candle should surely unnerve the bears and skeptics waiting on the sidelines. The sensex too has broken out above the uppertrendline of the rising wedge.The stategy of keeping longs going with hedges seems to have paid well. Buying on dips though was hardly possible as the dips have been too shallow.

Amongst the daily oscillators, which are still in negative divergence , the macd is in buy and Rsi14 seems to be improving having scaled it's previous peak The intraday oscillators too are in negative divergence and once again reaching overbought region.

The consolidation formation since last week could be identified as a flag  . The breakout from the formation has been sharp and on better volumes as required by the definition of a pennant. The target is length of the pole  which is 4580 to 4889 =310 points from point of breakout , which is 4808. 4808+310=5118.


The startegy of holding hedged longs continues. One may keep booking  partial profits as and when a  good rise comes along.

The 4782 level is now strong support and  stop loss for longs.


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 15th September, 2009

 Daily Nifty Chart

Daily Sensex Chart

 

Nifty Half Hourly Chart

The second day of lower top lower bottom and the fifth day of aimless small range trading. This action has formed a tiny head and shoulder bearish pattern . The low of 4782 has been maintained forming the neckline and is now a good support. Break of this support will open possibilities of testing earlier low of 4576. The head and shoulder target is 4685.

The intraday 5,10 and 20 ema continue to be bearishly aligned. Daily Oscillators continue showing negative divergence. Intraday oscillators are  all weak below their 50 line. Volumes were extremely low. Short term bias is mildly negative.But shorts are not advisable.Only on break of lower trendline of rising wedge (which is more clear on the sensex) should one go short.


The tight range trading is sure to give way to a big move either side.
Good supports exist  at  4760-4714-4680 .

As advised partial profits have been booked and remaining longs hedged, being prepared for a reversal and at the same time to  enjoy the remaining ride if the uptrend continues.




Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 14th September, 2009

Weekly Chart

Half Hourly Chart

Daily Chart

Negative Divergence  in AD Line

(Courtesy Icharts)

Last week's action resulted in a 200 point rise inspite of the negative divergences that I have been mentioning. This is extremely bullish considering the fact that it is a decisive close above the neckline of the inverted  head and shoulder pattern  and above the upper trendline of the rising wedge pattern. But I would like to do some dissection to see the insides of this 200 point candle. So here goes.

Monday : Huge bullish candle and breakout from consolidation pattern. Good follow-up buying .
Tuesday : Shooting star like pattern depicting selling at resistance
Wednesday : Inside day and a doji showing extreme indecision
Thursday : Classic shooting star pattern showing selling at highs
Friday : Doji with a lower high and lower low compared to  the previous day.

Barring Monday , the Nifty did not look very healthy , though each day's closing was higher than the previous day.This tells us that all is not well with the Nifty.  How about the other indicators?


Momentum

• Weekly oscillators have had moved lower from the overbought region since mid June when the Nifty hit a high of 4693 thus negatively diverging from the Nifty which has made a higher high of 4889 this week gone by. However , there are signs of improvement. The Macd is still in a buy mode and the Macd histogram has given an uptick The ROC12 has moved up without going below zero line.Stochastics too has moved up again in the overbought region.The RSI14 too has moved up after maintaining itself above the 50 level.
  
• Daily oscillators are yet showing negative divergence.Stochastics has given a sell in the overbought region. .Macd is in buy mode and moving up.The RSI14 is improving .
  
• Intraday oscillators  moved  down after giving a negative divergence but  have all started moving  up once again .

Momentum is not all that rosy but seems to be improving.

Moving Averages

Moving averages on all time frames are bullishly aligned except the 5,10 &  20 ema on half hourly charts, indicating bearish bias in the very short term.

 

Sentiment Indicators

• Volumes were not impressive .
• Put Call ratio is at 1.66 
  
• Advance declines line is in negative divergence.
• OBV has broken out above it's last peak and made a new high

Bearish Pattern

• The action since May 14 low of 3537 has taken the shape of a rising wedge, which is a bearish pattern. Break down from the wedge could give a 1200 point move. Negating it would require the Nifty to break above the upper trendline of the wedge .The Nifty has broken out above the upper trendline but the Sensex has yet to do the same. Till this happens I will be keeping this bearish pattern in contention.The weekly resistance for the sensex on this upper trendline is at 16308.
  

Bullish Pattern

• An inverse head and shoulder pattern is seen forming with neckline at 4750 .Break out from the pattern could give a 2400 point move up.The Nifty and Sensex have both closed above the neckline on the very first day of the week and maintained the breakout.
  
• Falling wedge pattern  on half hourly charts broken out on 17th July with a target of 5129.
  
• A falling wedge formation shown on intraday charts from which the Nifty has broken out on 21st August giving a target of 4934.
• A falling wedge from which Nifty broke out on friday 4th September, giving a target of 4770 which has been achieved.
• A falling wedge formed after hitting the highs of 4889 , and the Nifty has broken out of this in the last hour on Friday giving a target of 4922.
  

The  week's action is cautioning longs  and negative divergences give support to such caution.Momentum is not keeping up with price. The Advance Decline line too has negatively diverged. Rise is on low volumes.Put Call ratio is at 1.66 which is quite high  as market players are placing their bet on the markets turning down. A classic case of the market climbing "a wall of worry" . In most such cases markets continue to climb as the skeptics get tired of waiting for a downturn and invariably join in the party.Is this going to happen this time?

I would book part profits on my longs and continue with the rest of them keeping them hedged and enjoy the party till it continues.  Stop loss for longs at 4585. Short term traders could consider keeping a stop at 4780 which was the low maintained for the last three trading days.



Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 11th September, 2009

Daily Chart

 

 Half Hourly Chart

  Sensex

Today's candle is the classic shooting star which is bearish when occurs after a strong uptrend. Physical features are long upper shadow with a small real body at the lower end of the candle.The candle depicts that higher levels found sellers outnumbering buyers. The reversal of trend is confirmed when the next day is a bearish candle with huge real body.

The sensex resisted exactly at the upper trendline of the rising wedge . This calls for caution since the candle formed at the resistance is a shooting star.

Intraday oscillators moved down after negative divergence  and have not yet reached oversold levels. Daily oscillators  are in neutral territory except the stochastics which has given a buy from overbought region and show negative divergence. This indicates possibility of further fall.

Moving Averages are still bullishly aligned .

In the present scenario, I would hedge my longs and take a view after the weekly closing tomorrow.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 10th September, 2009

 Half Hourly Chart

 

Daily Chart

Today was a day of  rangebound sideways movement , finally ending up 9 points , as an 'Inside Day'. An inside day is a day where the trading range remains within that of the previous day. Direction of trade is determined fromthe breakout or breakdown from the previous day's range.

Daily oscillators have not shown much change since yesterday in the  neutral zone. Intraday oscillators have moved down from overbought region  but yet to reach oversold zone.The intraday stochastics however has given a buy from the oversold region.This may lead to some upside movement. The Nifty has also broken out of the consolidation pattern seen on half hourly charts whichsupports this.

The moving averages on all time frames are bullishly aligned.

Resistance is at 4842-4850-4880 and support at 4780. Watch for break from the range of 8th September, 4842-4782 for further direction.

Stop loss for longs  at 4635 on a closing basis -- the level for tomorrow on the uptrendline from March 2009 lows of 2539.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 9th September, 2009

 Half Hourly Chart

Daily Chart 

  

Sensex 

The Nifty continued it's uptrend today but retraced from the highs to form a shooting star on good volumes, which is bearish . The steep rising channel shown on half hourly charts has been violated.

The Nifty may correct down or move sideways in the short term as the intraday oscillators showed overbought condition with negative divergence leading to the retracement from the day's highs.Thus the fall  may continue till the overbought condition is corrected. Daily Rsi 14  and  Macd are still showing negative divergence.Stochastics has reached the overbought region.

Another point to note is that though Nifty has scaled the upper trendline of the rising wedge, Sensex has yet to do the same. The resistance is at 16312.

However since Nifty has broken out on the 7th of September from  the previous highs and from various bullish patterns for targets of  around 4900-5100, this correction should be a buy on dips oppurtunity, so long as the 4580-4600 levels are held.


Supports and Resistance levels are marked on the charts.


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 8th September, 2009

 Daily Chart

  Half Hourly Chart 

The Nifty made a huge white bullish candle leading to breakout  from   the previous high, neckline of the inveretd head and shoulder pattern, upper trendline of the rising wedge pattern and from the cup with handle pattern. This is extremely bullish, though volumes was not very impressive. But by trading with a stop loss, I would tend to ignore volumes for the time being.

Targets  for the upmove are 

• The 61.8% retracement level of the fall from all time highs of 6357  ------- 4788

• Falling wedges shown in my post yesterday -------------------------------4934 & 5129

• Cup with handle  shown on half hourly chart above------------------------5135

• Targets for the inverted head and shoulders is huge so would like to calculate it once these targets are achieved.

Intraday oscillators have reached overbought zone. Daily oscillators have started showing strength and Macd has given a buy once again.

Trade long with stop loss of  4580-4650

Happy Trading !!

Lakshmi Ramachandran

www.vipreetsafetrading.com

Reigning The Nifty - 7th September, 2009

 Weekly Chart

 

Daily Chart 

 Half Hourly Chart

Series of falling wedges on half hourly charts

Thursday's candle was an inverted hammer and Friday's bullish candle was a confirmation to it's bullishness. This clearly signals that we may see more upside. The strong resistance of 4650 has also been scaled easily and the close of Friday at 4680 was just above the 61.8% retracement level of the fall from 4744 to 4576.
However doing the  health check of the Nifty is very necesssary.

Momentum

• Weekly oscillators have not shown any change having moved lower from the overbought region since mid June when the Nifty hit a high of 4693 thus negatively diverging fromthe Nifty which has made a higher high of 4744 in the last week of August. The Macd is still in a buy mode but narrowing the gap with it's signal line.This calls for caution as momentum is not in sync with price.
  
• Daily oscillators are yet showing negative divergence.Stochastics has given a buy in the oversold region. .Macd gave a whipsaw and is ready to give a buy again.
  
• Intraday oscillators  are all moving up once again .

Momentum is not all that rosy and the stance according to this would be neutral.  

Moving Averages

Moving averages on all time frames are bullishly aligned.

 

Sentiment Indicators

• Volumes were lower on the fall and was high on Friday when the market rose .
• Put Call ratio today was 1.22  indicating oversold markets.
• Advance declines did not fall much and improved since the inverted hammer day.
• OBV is in negative divergence  .
  

Bearish Pattern

• The action since May 14 low of 3537 has taken the shape of a rising wedge, which is a bearish pattern. Break down from the wedge could give a 1200 point move. Negating it would require the Nifty to break above the upper trendline of the wedge .

Bullish Pattern

• An inverse head and shoulder pattern is seen forming with neckline at 4750 .Break out from the pattern could give a 2400 point move up.
• Falling wedge pattern  on half hourly charts broken out on 17th July with a target of 5129.
  
• A falling wedge formation shown on intraday charts from which the Nifty has broken out on 21st August giving a target of 4934.
• A falling wedge from which Nifty borke out on friday 4th September, giving a target of 4770.
  

Nifty is labouring towards highs as health does not permit. As per articles I have read on Price to Equity ratio the Nifty is fully valued. Any further upside thus, should not be sustainable. However , technically,  the recent action shows more upside targets for the Nifty.  Scaling of the rally high of 4744 is necessary though.

Though momentum is playing hide and seek with Nifty , price tells us that the Nifty is up till the recent low of 4576 holds.I would prefer to hold  hedged  longs with a stop loss of 4576.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 4th September, 2009

 Half Hourly Chart

 

Half Hourly Chart with Falling Wedge and Triangle

Daily Chart

An exhausting session of trade keeping the bulls and bears on tenterhooks.

Bearish Case

• The long uppershadow of today's candle
• Close below yesterday's close 
• The OBV has once again broken below the uptrendline from March lows.
• Daily Macd given a sell
• Moving averages on half hourly charts are bearishly aligned
• Nifty closed below the 200 period EMA on half hourly charts
• Oscillators on half hourly charts are weak

 Bullish Case

• Daily RSI 14 above 50 levels
• Daily moving averages bullishly aligned
• The fall has been on progressively lower volumes
• The pattern formed on daily charts during this fall is a falling wedge 

The triangle breakout shown on half hourly charts has a target of 4530.The lower trendline of the falling wedge has support at 4528 on daily charts.This should be good support .A breakout from the falling wedge at 4609 should lead to upsides. But before turning bullish 4650 needs to be overcome which has proved strong resistance for the past  two days. A weekly closing above 4450 will keep the hopes of a rebound alive as it is the weekly support level of uptrendline from March lows.
Supports and Resistance levels are marked on the charts.




Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 3rd September , 2009

Daily Chart

 Half Hourly Chart

Third day of lower bottom lower top  . From the action today it seems that fall will find support soon since Nifty was finding support at every fall. Of course there was selling at every rise too but at the moment we need to check whether the selling is getting arrested.The day's candle therefore formed  a doji like pattern  indicating indecision. 

Intraday Charts

 All moving averages 5,10,20,50   bearishly aligned, but yet above the 200 ema. 200 ema  offers support at 4591.Oscillators have started moving up without touching the oversold zone barring the stochastics. This could be a sign of strength or may be sign indicating more selling to come. 

Daily Charts 

 All moving averages bullishly aligned. Rsi14 is above 50 and Macd is yet in buy mode. Stochastics has moved below 50 but yet to reach oversold zone.

The support on the uptrendline from March 2009 lows has support at 4551 on daily charts and at 4524-4540 on half hourly charts. 4549 is the 50% retracemnt level of rise from 4353. So watch out for a rebound from around the 4525-4550 levels.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 2nd September, 2009

Daily Chart

Half Hourly Chart

The buy in the half hourly stochastics gave a good bounce and was sold into as anticipated. Volumes were high and breadth negative. The intraday and daily oscillators indicate more room for selling. Strong support is seen at 4500 levels.



Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com