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Monday, November 29, 2010

Reigning The Nifty - 29th November, 2010

 Weekly Chart

Weekly Chart II

Third week of continued bearishness on very huge volumes and extremely bad breadth. The uptrendline from 4786 has been broken. However , the uptrendline from March 2009 lows proved good support. Support from this trendline for next week is at 5748.

Weekly Chart II shows fibonacci retracement levels from the high of 6338 to various lows made. The retracement levels which coincide, shown in red , should be very strong supports.

Macd has given a sell and Rsi 14 has moved below the 50 mark. Stochastics however  has moved into the oversold level increasing possibilities of a pullback.

Supports are at 5730-5628-5570-5385-4786.  Resistance  at  5843-5937-6020.

 Daily Chart

The head and shoulder target of 5425 seems plausible  seeing the relentless selling on huge volumes and weak breadth since the last two days.Attempts of recovery have been almost nil.

Stochastics is in the oversold zone with Rsi 14 and Macd are fast approaching the same.The rise from 5348 has been retraced around 62% and  rise from 4786 has been retraced around 45% .Bounce from the low of 5690  therefore, has chances of continuing.Break of this low will see a test of 5348.

 Half Hourly Chart

 Support taken on the lower trendline of the downward sloping channel shown on half hourly charts.A breakout from this channel will be necessary for upward momentum.The resistance from the channel is at 5870-5837 . Neckline resistance is at 5838-5833.

Short term trend is down but oversold. Fresh longs only when a bottom forming is proved. Fresh shorts only on a pullback.

Happy Trading !!
Lakshmi Ramachandran

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