Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, May 10, 2010

Reigning The Nifty 11th May, 2010

Daily Chart

Half Hourly Chart

Daily Line Chart

  • Huge bullish candle retracing 50 % of fall from 5400 on good breadth and average volumes.
  • Daily oscillators moving up from oversold area and macd has shown an uptick.
  • Half hourly charts show breakout form downward sloping channel giving a target of 5276 and above the green trendline once again.
  • Half hourly oscillators are strong and have reached the overbought zone.
  • The 5,10,20 & 50 emas are now bullishly aligned on half hourly charts.
I wrote yesterday, The intraday charts though are showing positive divergence and very minor bullish patterns which could develop into a small bouce. What seemed like a small bounce in the offing,  turned out to be huge bounce of  175 points!  50 % of the fall was retraced in one day !

The Nifty needs to trade above 5213 tomorrow in order to continue the bullishness. Resistance is at 5241 the 61.8% fibo level. The fall to 4984 consumed 22 days . A faster retracement to 5400 would be bullish . 

The trendline from 3918 is now very significant support.Till this line holds the Nifty may move higher.Support from this trendline is at 4994.

Happy Trading !!
Lakshmi Ramachandran


Anoop said...

Nice analysis. Further, I would like to ask how the target of 5276 has been calculated for half hourly chart? Thanx.

Lakshmi Ramachandran said...

height of channel added to point of breakout from the channel