Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Sunday, March 28, 2010

Reigning The Nifty - 29th March, 2010

Weekly Chart

Daily Chart

Half Hourly Chart

Weekly Charts 
  • A higher high higher low maintained for the sixth week but on very low volumes.
  • Doji showing indecision the long lower shadow shows support at lows.
  • Macd and Rsi 14 continue to be in negative divergence.Macd has moved  towards it's signal line and about to give a buy after giving a sell on week ending 30th October 2009.
    Daily Charts
    • Close exactly at high made on line charts on the 6th of Jan .
    • Rsi and stochastics in overbought region and stochastics still in negative divergence.

    Half Hourly Charts
    • Moving averages bullishly aligned.
    • Oscillators continue to show negative divergence.

    Nifty has continued to move up but on lower volumes , deteriorating breadth and  negative divergences , all calling for caution. Trend following indicators are strong and price patterns too call for a continued uptrend. A classic breakout from the downtrendline joining January 2008 and Januray 2010 highs, a retest of the trendline and continuing to move up  supports this view.  However deterioration of market internals calls for caution.

    Strategy of remaining neutral saved one from  whipsaws. Remain neutral till a decisive break above the high of  5310.If one is still long then stops should be at 5250 to protect profits. Crucial support for longs is at 5187.

    Happy Trading !!

    Lakshmi Ramachandran


    Girish Desai said...


    The rising channel you've shown in the weekly picture is really cool! I have made it the background for my laptop (& extended display of 22-inch LCD). It almost seems like - buy at the bottom of the channel and clean up portfolio at the top and go short on weakness should be the strategy :) The big issue is not knowing which stocks will do well - as I posted on the board only a handful have led the rally. So better trade only Nifty.

    Lakshmi Ramachandran said...

    girish , wish i could see the blown up chart. yes if one has the patience ,confidence and convitction to play the Nifty that way then one could really mint money. But then most of us end up looking at smaller time frames