Reigning The Nifty - 3rd November, 2009

The  range of  5182  to  4921 broke down early in the week giving a move of 260 points  and reluctantly stopped at 4687 almost close to its target of  4660. The 4660 level should be good support as there is a confluence of supports around this level of 4660- 4700.

Weekly Chart

Daily Chart

 

Daily Line Chart

• 38.2% retracement of rise from 3918 to 5182  @  4699
• target of range break from 5182-4921 is 4660
  
• .Neckline of inverse head and shoulders  @  4655 to 4706 (have made this range as shoulders are a little uneven.
  
• 61.8% retracement of rise from 4353 to 5182  @  4669
• Daily line chart shows important support on ;ower trendline of rising wedge at 4665
  

Oscillators are oversold on daily charts and a bounce is due. Weekly oscillators have moved down from  overbought territory. The weekly Rsi14 has broken low made in July . Corresponding low of Nifty is 3918.Weekly Macd has given a sell.

The trend is now down and  the strategy should be to sell the rallies from now on.




Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com