Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Wednesday, September 8, 2010

Reigning The Nifty 8th September , 2010


 Daily Chart

 Half Hourly Chart

Today's candle was a  fair  follow up to yesterday's bullish breakout breakout. Nifty registered  a higher high higher low and a  new high of 5625.The last half hour saw profit booking from the highs forming a long upper shadow , but not long enough to get  bearish . Volumes were good but breadth only marginally positive.

The half hourly chart gives a better picture of today's action.After the initial surge it was consolidation all day with a final surge up to the high of 5625 only in the last hour. The last half hour saw profit booking . This pushed Nifty to touch the 23.6% level of the rise from 5473 to 5625. Buying support at this level helped to close above the 5600 level.

The action from the low of 5349 is within a rising channel which is very slightly converging  prompting me to call it a channel rather than a rising wedge. The rise though is very steep and has hit the upper trendline calling for a sideways movement or a downward correction.

Daily oscillators continue to show negative divergence. Macd is in a buy.Half hourly oscillators too are in negative divergence.

Supports are at  5590-5566-5550-5530  Resistance at  5625-5675.

Happy Trading !!
Lakshmi Ramachandran

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