Reigning The Nifty - 4th January, 2010

 Yearly Chart

View: Bearish --- Inspite of high volumes the Nifty could not recover the complete fall.The reason could be that there is ongoing distribution

Quarterly Chart

View:  Bearish ---  Quarterly charts magnifies the fact that fall was on rising volumes whereas the recovery has been on falling volumes

Monthly Chart

View : Cautiously optimistic ---

• Rise on falling volumes since July 2009. 
• A breakout from the downtrending line joining January 2008 highs and October 2009 highs. The breakout though is not too convincing and more proof of strength is required.
• Minor negative divergences seen in RSI 14  and Stocahstics . Stochastics is in sell in the overbought region since September 2009.
  

Weekly Chart

View : Moderately  Bullish

• The  weekly charts too show a breakout .The candle formed  is a doji but this can be attributed to a 3 day trading week.
• Holding well above the neckline at 4650 of the inverse head and shoulders since the breakout in August 2009 .
• Moving averages bullishly aligned.
• Broken out of the range of the last four weeks  on the upside.
  
• Negative divergences persist .
  

Daily Chart

View : Moderately Bullish

• Invalidated  double top by breaking above it
• Moving averages bullishly aligned.
• Negative divergences getting diluted as Rsi 14 has broken above it;s down  trendline.
• Macd in buy.
• Advance decline Line and Put Call ratio support the bullishness.
  

Half Hourly Chart

View : Neutral to mildly bullish

• Further action not predictable as truncated week and  last trading day was derivative closing for December contracts
• For further bullishness trading above 5220 is necessary.
• Oscillators in neutral zone after showing negative divergence.
  

Breakout from the 4942-5182 range has proved that bullishness persists in the near term. So long as the 4835-4925 levels hold the uptrend is intact. Continuing with hedged longs till a break of this level  would be the strategy.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com