Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Friday, July 16, 2010

Reigning The Nifty 16th July , 2010

Daily Chart

Half Hourly Chart

Nifty continued to show lack of energy by making a lower top lower bottom candle with a small range of 36 points. Trade was below the 5400 mark . Advancing Volumes were greater than Declining Volumes which is a positive.Breadth was marginally negative.Volumes on the Nifty were low.Daily oscillators are starting to move down after showing negative divergence.

The half hourly chart shows a bearish head and shoulder pattern which can take the nifty to 5253 levels.This is highly probable as the half hourly oscillators have not gone below their oversold levels as yet.The neckline,at 5360 levels,  holding tomorrow is therefore very crucial.

Weekly Chart

The weekly open was at 5352 and if  Nifty closes below this level tomorrow, it would form a  bearish candle.The weekly pattern which I have been discussing since sometime  still holds unless 5276 is taken out.

Supports are at 5360-5332-5315-5282. The 10dema offers support at 5340 and 20 dema at 5296. Resistance is at 5400-5453-5478.

If already long then keep a strict stop loss of 5285. Fresh longs only on a cross of 5453. 

Happy Trading !!
Lakshmi Ramachandran

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