Reigning The Nifty - 2nd February, 2010

Daily Chart

 

Half Hourly Chart

• A third small bodied candle with long lower shadow but with a higher bottom and higher top increasing chances of a continuing pullback.
• The red trendline lending support at 4855 has held well.
• Volumes were low but breadth was hugely positive.
• Half hourly oscillators are all trending up strongly excepting the stochastics which has given a sell from the overbought zone after showing negative divergence. This increases chances of a small correction in the pullback.
• Daily oscillators have given an  upward tick from the oversold zone  indicating  the pullback may continue.

The pullback started on  29th did not make much progress today but managed to make a higher high higher low. The close was just above the 23.6 % fibo level.  So long as the 4827 levels hold the pullback will continue with resistances as marked on the half hourly charts.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com