Reigning The Nifty - 1st April , 2010

Daily Chart

Half Hourly Chart

A lower high and lower low candle breaching yesterday's low , but only intra day, leaving one guessing if the fall will continue.Improving breadth  since last two days makes the guessing more difficult. Volumes were higher than the previous two days. Daily oscillators are weak and moving down  towards neutral zone.

Half hourly stochastic oscillator has reached oversold zone. Rsi 14  has reached levels where it has taken support at levels maintained since 15th March. Nifty has bounced back twice  from these levels . Will it do so a thrid time? The fall has formed a falling wedge which is a bullish formation. Watch for support on the lower trendline of the wedge as this may lead to a breakout from the wedge.

Strong supports are at 5187-5175. Remaining neutral would be the strategy.

Since tomorrow is the last trading day of the week, would prefer to analyse the monthly and quarterly charts during the weekend.



Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com