Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Sunday, March 7, 2010

Reigning The Nifty - 8th March, 2010

 Weekly Chart

Weekly Negative Divergence

  • Follow-up buying on lower volumes than the previous week formed a Bullish candle .
  • Maintained within the channel . Support at 4753 and resistance at 5405.
  • Negative Divergence and falling  volumes  on the rise since May 2009 makes the sustainability of the rise, suspect.

Daily Chart


  • A doji with a long upper shadow was formed but the higher top higher bottom  mainatained.
  • Volumes increased in the last two days ,both days showed signs of the rise stalling. This calls for caution .
  • Third consecutive day the Nifty maintained above the upper channel trendline and above 61.8% retracement levels.
  • The 5,10 and 20 ema are bullishly aligned once again.
  • Stochastics in oversold area and Rsi14 moving towards it.

Half hourly Chart

  • Consolidation/Distribution in an equilateral triangle.
  • All oscillators weak after showing negative divergence.


 Filling the gap, shown on the sensex, was crucial for further upsides. The gap was filled but sensex could not close above it. Look for a close above friday's high of 17097, above which the recent top of  17790 could be achievable.

Markets have run up fast after building good support at 4950. The trend is up and one should be long.  As negative divergences are persisting one should keep stop loss around 5000-5050 levels.Booking profits with pattern targets in mind would be prudent.Please refer to pattern targets in my earlier posts.

Happy Trading !!

Lakshmi Ramachandran


cdmoorthy said...

small triangle on half-hourly chart - break out 5098 breakdown 5083... extremely tight range...

ida ida idathaan edurparthen.. nice

bulls should take note of the Negative divergence (especially volume) in weekly charts.

lets see how market opens up Monday morning.

Sujatha said...

@ Sweety - Adhu Adhu adhudhan lakshmi mam speciality :)

By the way she knows tamil?

Thank you mam for your early updation especially for Sensex too..

Thanks and regards

golfdude said...

Curious on your opinion of RSI negative divergence but RSI being above 50. Usually traders are bullish ( by my reading ) above 50.
Any opinion ?

Lakshmi Ramachandran said...

RSI >50 is fine but if there are negative divergences then it shows that the strength shown by RSI is not enough else it would keep in tandem with the price

Anoop said...

Despite the negative divergence seen on weekly, it is still maintaining uptrend.
If the nifty does't take out 5310 and turns back and then goes on to take out 4675, the current weekly uptrend will become suspect.

-Anoop kumar