Daily Chart
Half Hourly Charts
Nifty corrected violently, stopping at the 38.2% fibo level of rise from 4786. Breadth was very negative, but volumes low. Daily oscillators have weakened again. The Nifty futures chart shows an island reversal which is very bearish unless the gap down area is filled. The 50 dema has been violated again.
On half hourly charts the rising wedge has been broken giving a target of 4678. Emas are getting bearishly aligned. Nifty has once again fallen below the 200 ema which is now proving resistance.
Strong support is there at 4961 levels which is the last swing low and the 50% fibo level of rise from 4876. The 200 dema has support at 4910. Only if these levels are violated will Nifty target the previous low of 4786 and if this low does not hold then the rising wedge target may be achievable.
Trade long if the gap on Nifty futures between 5032 and 5117 is closed and the Nifty futures trades above this level. Trade short only if the support of 4961 on spot Nifty is violated on a closing basis.
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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