Weekly Chart II
Nifty has formed a shooting star which is highly bearish. The fact that the move past 5367 to scale the previous peak at 5399 made 2 months ago has been eluding , adds to the bearish possibilities. The stochastics is overbought, the Rsi 14 continues to make lower high and lower low since October 2009, Macd too has been in tandem with the Rsi 14 and is in a sell mode. Only a move above 5367 will nullify the bearishness.
Chart II shows the downtrendline from January 2010 joining highs made in the rally from March 2009, has been resistance at first but finally scaled to make new highs in the rally. The Nifty may thus correct some more only to finally scale the trendline.
Resistance is at 5290-5367-5399 and Support at 5179-5059.
The inside day range was broken on the downside but the close is still inside the range.The breakout from the uptrendling channel and the downtrending line from January 2008 highs proved false . Oscillators and OBV have moved below immdediate trough made on 18th June . Nifty's corresponding low is at 5245.Possibility of breaking this low is high.
Support at 5207 which is the channel support. Resistance is at 5304-5367.
Happy Trading !!