Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Wednesday, September 16, 2009

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


Olive Tree said...

Hi, it's a very great blog.
I could tell how much efforts you've taken on it.
Keep doing!

masilamani said...

Hi mam,
thank you very much for your explanation about assending triangle.

SATYAM said...

Firstly wanna thank you for you kind effort to us and such a great blog, I found it today through blog search and let me tell you , it's one of the bets blog on nifty , please keep up the gr8 work SIR. Hope to keep in contact now onwards. Thank you. Please do check also my blog, hope you'll also like it. Regards,

-Satyam Sit

Lakshmi Ramachandran said...

thanks everyone. btw satyam what is your website address

SATYAM said...

Hello Sir, Thank you for your reply, my blog site is given below: