Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Saturday, April 24, 2010

Reigning The Nifty - 26th April, 2010

 Weekly Chart

  • Weekly  lower high and lower low continued for the second week .
  • The candle for the week is a bullish candle showing good support at lower levels.
  • Volumes were high and breadth mildly positive.
  • Rsi 14 and Macd still showing strength but stochastics is moving down from overbought levels.
  • 5167 is support on uptrendline from march 2009 lows , coinciding with the week's low of 5161, making it a significant support.

Daily Chart I

 Daily Chart II

  • Closed above the range of 5160-5279 making a higher low for the fourth consecutive day .
  • The close was above all short term demas  which is bullish., and barring the 5 and 10 demas all are bullishly aligned.
  • Oscillators are showing strength once again, moving abup above the 50 level, though Macd is in sell but shown an uptick.
  • 5264 is good support coinciding with the 20 dema at 5262.
  • 5200 is good support on line charts. So a close below 5200 would be bearish.

Half Hourly Chart

  • Half hourly line charts close above   the 61.8% level, opening the possibility of testing the 100% level at 5385.
  • Oscillators are showing strength. 
  • Emas are all bullishly aligned once again.
  • Rising wedge formation on the rise from 5161.

The inability to reach the upper trendline of the channel shown on weekly charts is called "return failure" and is considered bearish. The failure to reach a channel line provides warning that the current trend is losing strength. If, on the other hand, nifty breaks out of the channel line, it is a sign the current trend is accelerating.
Thus , till the earlier high of 5400 or the upper trendline of the channel is crossed, Nifty could move lower. However ,  the Nifty could continue to move up till the low of 5160 is held.In short, expect whipsaws till the range is broken.

Support at 5265-5160 and Resistance at 5340-5350-5400.Place stops on short/long positions accordingly.

Happy Trading !!

Lakshmi Ramachandran


Rahul K. Jamkar said...

ur analysis is simply great tanks a lot mam.

Sujatha said...

Wah mam,

It's really very happy to c your updation on Saturday itself :)

Thanks a lot.


cdmoorthy said...

Lakshmi ji, ref: weekly chart - (1) from the low of march 09 from where this bull trend is going on - you can find every time whenever there is a correction, nifty is finding support at higher levels (means: higher lows) -- this has been continuously going on since last four corrections. Same thing is true with reliance also. So my understanding is RIL would early warning signal if nifty is going to change the trend..

(2) One of my friend was trading on swing set-up based on ADX on weekly charts.. saying "hook is ready" to initiate fresh position on nifty and closes it at the bottom.

Now my request is: Would it be possible for you to co-relate these (above two points) at the end of week along with your nifty views. Wouldn't it give more accuracy?? just a wishful thinking.


Lakshmi Ramachandran said...

sweety, every analyst has a different style/set of are dynamic so whatever method/indicators u use u will always be wrong sometimes.Important thing is dicipline in your way of analysing and acting on the same. so incorporating those two points need not make it accurate, though it may substantiate, though only at times as Reliance may start having it's own bull or bear run. Also too many indicators leads to paralysing your analysis.