Reigning The Nifty - 11th January, 2009

Weekly Chart

The week saw a higher high and higher low on good volumes and closed well above the breakout point of 5182 after a successful retest of the previous weeks low of 5160.This makes the 5160 levels a significant support . The long upper shadow shows selling at 5300 levels , which is a concern as negative divergences on the oscillators too are intact.

Daily Chart

Daily Line Chart

The daily scenario is a little bearish unlike the weekly having broken out of the rising channel  in which it was moving  since almost mid December. The last two days have made a lower top lower bottom  and lower closings too. Negative divergences on oscillators are intact. Volumes during the week were good which adds to the bearish bias.

Half Hourly Chart I

Half Hourly Chart II

Half hourly chart I shows a sideways movement within 5242-5310 since the last 4 days. The bias though is down as depicted by the moving averages which are bearishly aligned. The 50 ema support too has been broken. The Chart II shows a consolidation flag pattern with positive divergence in the stochastics and ROC.

My View :

• The  markets have seen new highs this week and a shallow pullback. 
• The advance decline line has been steadily moving up.
  
• The very short term is seeing positive divergences. So one could assume that the pattern forming on the fall from 5310 is a consolidation. 

The broader trend being UP, one should continue being long but at the same time be hedged as the conviction at highs are not too strong. Supports at 5242-5160-4945

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com