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Om  Sri  Ganeshaya  Namaha
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Tuesday, June 1, 2010

Reigning The Nifty - 1st June , 2010

 Daily Chart

Nifty maintained the higher high higher low on daily charts. Intraday correction found support at 5038, well above  the support of 5017 mentioned yesterday . However,the candle formed  today is a  hanging man, which is bearish. The fact that selling pressure made a long lower shadow, rings alarm bells.The top of the candle at 5097, now becomes significant resistance, and in this case even more significant as it coincides  the 50% retracement level of the fall from 5400 , which is at 5093.

Daily stochastics has reached over bought zone. Half hourly oscilators are still in negative divergence and moving up once again. 

Short term trend up but medium term trend is neutral. Indications are we may see some more pullback of this rise. Crossroads again. Trade long cautiously with a stop at 5038.

Resistance at 5097-5167-5212.

Supports at 5038-5025-4980.

Will reply to comments soon and put up the month end analysis by tomorrow.

Happy Trading !!
Lakshmi Ramachandran

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