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Sunday, May 16, 2010

Reigning The Nifty - 17th May , 2010

 Weekly Chart

Daily Chart

Daily Line Chart

Half Hourly Chart

Weekly Chart
  • An "Inside candle" with a long upper shadow on average volumes.
  • The low of 4984 of last week was not visited during the week gone by, which makes it significant support.
  • Oscillators are weak, stochastics is close to the oversold zone and macd has given a down tick and is in buy. The Rsi 14 however has turned up above the 50 level showing strength.
  • The trendline from low of 3918 has support at 5025.

Daily Chart

  • The Nifty could not make the follow through buying and fell due to lack of buying as the fall was on very low volumes.In the last week, volumes on rise has been more than on falls.
  • Oscillators are weak and falling fast .
  • The Stochastics has given a sell in the overbought zone indicating more fall may be there.
  • The 5,10 & 20 dema's continue to be bearishly aligned.

Half Hourly Chart

  • Double top around 5200 levels giving a target of 4986.
  • Broken out of the rising wedge giving a target of 4945.
  • Stochastics and Rsi 14 reached oversold levels.
  • Taken support exactly at the 61.8% fibo level of rise from 4984 to 5212.

    Nifty has taken support at the 5071 level which is the 61.8% fibo level from 4984 to 5212. Holding this level will resume the uptrend finding resistance once again at 5150-5200 levels.Weekly charts show that the volume of the fall in the week ended 7th May and week ended 14th May were almost the same. Thus  the Nifty fell more easily but could not rise that easily on same volumes indicating more selling pressure than buying pressure.The trend is down and selling on rallies will be the trading mantra.

    Weekly supports are at 5027-4823. Daily supports are at  5015-4909. 200 dema is at  4894.Previous low made is 4984.  This makes the 4900-5025 a good support zone.

    Will not be updating tomorrow due to a personal engagement.

    Happy Trading !!
    Lakshmi Ramachandran

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