Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, July 26, 2010

Reigning The Nifty 26th July , 2010

Weekly Chart

The Nifty made a higher high and higher low candle making a new high of 5477 in the rally which began in March 2009 . So the uptrend continues. The oscillators continue to show waning momentum by way of negative divergences,   cautioning the bulls.

 Daily Chart

Today's  candle made a higher high and higher low but formed a shooting star which is an ominous sign of bulls losing strength. This is a potential reversal candle. The negative divergence on daily and weekly oscillators   give weight to the shooting star.However, action on next trading session is necessary to confirm it's bearishness. Watch out  for a bearish candle on Monday on good volumes.The 5400 level was strong resistance which has been overcome decisively. Break below this would give courage to the bears.

Supports at 5412-5353-5329    and  Resistance at  5477-5510.

Stop Loss for positional longs at 5350  and longs with a shorter time frame at  5400.

Happy Trading !!
Lakshmi Ramachandran

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