Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Saturday, April 17, 2010

Reigning The Nifty - 19th April, 2010

 Weekly Chart

Daily Chart I

Daily Chart II

Half Hourly Chart

Weekly Charts
  • Broken trendline joining lows since 4675 making a lower high lower low after 9 weeks.
  • Oscillators moving down after negative divergence.
  • Support at 5121 on trendline joining March 2009 and February 2010 lows.
  • Fall was on low volumes.
Daily Chart
  • Fall continued but found support at previous low of 5235 on negative breadth but on low volumes.
  • Candle formed has long lower shadow indicating support at lower levels.
  • Stochastics is in oversold zone and Rsi 14 and OBV have broken all supports made during the rally from 4675.
  • 50 dema support at 5166 which coincides with support at trendline joining Jan 2008 and Jan 2010 highs.
Half  Hourly Charts
  • Decending triangle formation indicating support at 5235 may be violated.
  • Oscillators moving up from oversold zone indicating the pullback may test the upper trendline of the decending triangle.
  • The pullback has started forming a bear flag.

The rally from 4675 is declared over.The trend will be declared down only if 4675 is broken. However, weight of evidence supports a correction till 5400 is crossed. 5122 is very strong support as it is the 38.2% fibo level of rise from 4675 to 5400 and is weekly support on trendline joining March 2009 and February 2010 lows.

Daily stochastics at oversold zone and intra day oscillators moving up from oversold zone support a pullback.Long lower shadow at 5235 support gives weight to this view.

Sell on rallies strategy continues.

Happy Trading !!

Lakshmi Ramachandran


Sujatha said...

Thanks for early updation :)

As per your all charts totally 5100 level is strong support?

Is 5368 is double head? made on 19th and 27th feb '2008 (as per my data :( Can you please check and reply mam when you are free.

Thanks in advance and regards

Lakshmi Ramachandran said...

yes it is a short term double top.

sagar said...

hello mam, so can we buy at lower levels around 5130-50 with a closing stop of 5090???

Lakshmi Ramachandran said...

sagar, If that is your style of trading you could.