Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Thursday, August 5, 2010

Reigning The Nifty 5th August , 2010


 Daily Chart

Half Hourly Chart

Nifty  maintained the higher high higher low formation after putting up a tease for most of the trading session , leaving a lot of pigs slaughtered . It was difficult to guess that there would be a last hour spike to register a new high.Though the close was below the high , it was the highest close of this rally.The range has finally broken on the upside. A close above the range though, would have been ideal -- The range on Line charts (EOD values)  5367-5449 has been broken decisively. technically the breakout has a target of 5580.The head and shoulder target is at 5513.

The oscillators though have not participated in the party and have kept the negative divergences intact. Negative divergences are seen on half hourly charts too. The Nifty has been  on a run  for 17 months with  a lot of hesitation. In other words "climbing the wall of worry" . Maybe this over  cautious approach by market participants is what is keeping the trend up. However, one needs to be hedged on longs ,and, as advised earlier no shorts till a confirmation that bulls have surrendered to the bears. Better safe than sorry.

Strong resistances are at  5500-5520-5535. Supports at  5450-5426-5400-5349.
Support for old  positional longs at 5349 and fresh longs at  5435 on an intraday hourly close.

Happy Trading !!
Lakshmi Ramachandran

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