Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Friday, December 3, 2010

Reigning The Nifty - 3rd December, 2010

 Daily Chart

The resistance at 50% retracement level of the fall and the high of the last bullish candle made during the pullback on 22nd November at 6015 and 6020 was respected. The Nifty closed  just below these levels at 6011 after briefly touching a high of 6029  making  a "Hanging Man" bearish pattern. Scaling the high of the candle at 6029 and closing above it is necessary to negate the bearishness.

The gap up on the open of 63 points was partially filled on reaction upto 5980 making it a strong support.The 5,10 and 20 dema though, are still bearishly aligned, which  points to caution on the long side. The close however, is above the 50 and 20 dema.The signals are mixed and one needs to be cautious.

Half Hourly Chart

The half hourly charts show the neckline of an inverse head and shoulder bullish pattern at 6020. However a cros of todays high of 6029 would be advisable to confirm the breakout which would then give a target of  a 230 point move to 6280 levels! Barring the 50 and 200 ema ,all other ema on half hourly charts are now bullishly aligned showing recovery efforts are on.

Strong resistances at 6065-6144. Suppports at 5980-5945-5930-5900.

Happy Trading !!
Lakshmi Ramachandran

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