- Third bearish week in a row, breaking below the trendline joining November 2009 low and last week's low. The weekly has turned bearish.
- Volumes were marginally higher than last week .
- Weekly Oscillators are weak having broken their lows of July 2009.This increases the possibility of Nifty testing the July lows of 3918.
Daily Line Chart
- Daily Line chart shows trend decisively down and the OBV too mirrors the same.
- Daily Rsi 14 and stochastics have reached oversold levels.
- Daily Candle chart shows strong support at 200 dema at 4655 and strong resistance at 4850-4951.
Half Hourly Chart
- Half hourly charts show the beginning of a pullback.
- A double top was made at 4951 and 4949 with the low at 4814 and Nifty has retraced after nearly touching the target of 4677 . Only a cross of 4951 will turn the short term bullish.
- Oscillators have started moving up from oversold zone.
Be cautious on longs as it will be a trade against the broad trend which is down. Selling on rallies should be the strategy.
Happy Trading !!