Reigning The Nifty - 8th February, 2010

 Weekly Chart

 

• 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 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.

The weekly charts too are now in a sell mode.This makes the broader trend down till  we have evidence of the trend turning up once again. The daily oscillators are in oversold zone and half hourly charts have started moving up from oversold zone  increasing the probability that the pull back may continue with fibo resistances at 4748-4786-4817-4850.

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 !!

Lakshmi Ramachandran
www.vipreetsafetrading.com