Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Tuesday, July 27, 2010

Reigning The Nifty 27th July , 2010

 Daily Chart

Daily Line Chart 

As mentioned in my post for 26th July, the bearishness of the shooting star was  confirmed today by a bearish candle.Breadth was negative and volumes average. Volumes on declining stocks were higher than on advancing stocks.The uptrendline once again lent good support. This is the fifth strike on the trendline . Coupled with this is the narrowing of  trading range as depicted by the rising wedge. Negative divergences on oscillators too have been cautioning bulls since some time.On line charts the trendline is already broken increasing the possibility of  lower levels for the Nifty.

The Nifty needs to trade above 5427 to remain above this trendline and close above 5437. Break of this trendline could be extremely bearish giving a 690 point move on the downside.A break below 5350, which is the swing low, would be further confirmation of a breakdown in the Nifty .  A reversal of this view would require a breakout above the high of 5477.

Strong supports are at 5400-5350-5315  and  Resistance at 5450-5477-5518.

Happy Trading !!
Lakshmi Ramachandran


Ritesh Bhansali said...

on weekly charts nifty has made rising wedge pattern do you think there could be break down , i have mentioned it my blog i would appreciate if you would have look at it and give your thoughts

Lakshmi Ramachandran said...

Ritesh a rising wedge is bearish and the one on nifty weekly charts is bearish too provided Nifty breaks down from the lower trendline.