Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Saturday, December 19, 2009

Reigning The Nifty - 21st December, 2009

 Weekly Volume Chart

Weekly Chart

There was no breakout from the " Inside " pattern made last week. An evening star pattern has been formed This is a  bearish candlestick pattern consisting of three candles
  • The first candle is a large white candlestick in an existing  uptrend. 
  •  The second candle is a small-bodied candle (black or white) that closes above the first white bar.
  • The last candle is a large black candle that opens below the middle candle and closes near the center of the first candle's body.
A break down from the rising wedge has occured giving a target of 4420.
    Amongst  the momentum indicators , Macd is in sell and  the RSI14 has broken the low made on 27th November.  This low corresponds with 4806 low made by Nifty on that date.The stochastics has given a sell once again in the overbought region.

    The fall however has been on low volumes which is heartening to the bulls.

    A lot of evidence leaning towards bearishness . However one could wait for the Inside pattern low of 4942 to be broken before being outright bearish

    Daily Chart

    Nifty has broken below the 50 dema. A falling wedge is seen having support at  4953. Breakout will be at 5022. The daily oscillators have all broken below the low made on 27 th November . So a break of the corresponding low of Nifty at 4806 is very possible.

     Daily Line Chart

    Half Hourly Chart

    The head and shoulder target shown on half hourly charts has been achieved. The next support is at 61.8% fibo level at 4950 of rise from 4807. The 38.2% fibo level of rise from 4538 is at 4935. The double top target is at 4924.

    The 4925 to 4950 has strong supports. Watch out for a pullback from these levels.However a break from these levels would lead to a test of 4806 low  with a strong support at 4820 from the trendline joining lows of 3918 and 4538 , shown on weekly charts.

    Look to trade short for targets shown in various time frames until we have evidence of the uptrend resuming.

    Happy Trading !!

    Lakshmi Ramachandran


    Anonymous said...

    Dear Lakshmi,

    Excellent pivots, I am holding my shorts and will add if the lower 4920 breaks. Thanks for early post much useful during weekend analysis.

    With any luck we will see further falls in nfty and a white Christmas in Leeds.

    Leeds UK

    SANDEEPARORA said...


    Sujatha said...

    Thanks for the early post. It's really very useful/helpful to go through...

    Have a great week.


    ns said...

    Dear Madam, I came through your blogspot It is quiet amazing to have complete technicals. I am new to this market and looking for technical analysis. Where can I get the charts from. Could you plese advise me. I am based at chennai.