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Om  Sri  Ganeshaya  Namaha
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Friday, October 30, 2009

Reigning The Nifty - 30th October, 2009

Nifty took support around the breakout level of 4743 forming a big black candle on huge volumes.. The channel break target  mentioned in my post of 23rd October has been achieved. The daily chart shows support at 4700 and  4610

The Rsi14 has moved below the March 2009 levels and Macd is now negative below zero line. Stochastics languishes in the oversold zone. All pointing to bearishness.

Daily Chart

 Half Hourly Chart

Tomorrow is the weekly and monthly closing and we should focus more on the closing price.The weekly support on the uptrendline from March is at  5052. The Inverse head and shoulder neckline is at 4655. Hence if the close is below these levels  then the Nifty is in for a good downside.Refer to weekly charts posted on my write up for 26th October.

Happy Trading !!

Lakshmi Ramachandran


Sujatha said...

Definitely it will not close below 4655 cos of +ve world cues, but closing below 5052 also -ve mam?

Thanks and regards.

rajamani said...

hilakshmi mam,

i have query regarding "momentum preceded the price " in the forum

kindly clarify


Lakshmi Ramachandran said...

yes the close below 5052 has broken the uptrendline on weekly charts decisively. and that is medium term trend violation. so -ve.
rajamni will reply on forum