Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Friday, September 25, 2009

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

1 comment:

Anonymous said...

It's interesting that NIFTY has such inherent strength to close reasonably strong, considering other regional Asian markets very battered.

This is indeed a gift to bears, if it breaks 4930 at the close on Monday then I am turning short with a stop at the recent high.

Thanks for your charts!