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Tuesday, December 7, 2010

Reigning The Nifty - 7th December, 2010

 Daily Chart

The 50% retracement level of the fall from 6338 to 5690 continues to be strong resistance. The day's candle however made a higher high and higher low. The Nifty seems to be moving in a perfectly parallelled downward sloping channel. Resistance is at 6053 and only a breakout from this channel will see more upsides.

Macd is in buy since Friday but Stochastics has turned down giving a sell in the overbought zone.Only the 5 and 10 dema are bullishly aligned .This shows that the short term is oversold and the pullback may continue tomorrow.

Strong supports from the 5,10,20 and 50 dema are at 5951-5980.  Other supports are at 5958-5904 shown on the chart.

Resistance is at 6020-6053.

Half Hourly Chart

Bearish flag? The slightly contracting upper and lower trendlines make it look like a rising wedge which is also a bearish pattern.Support at 5936-5970 on the lower  trendline for tomorrow.Negative divergences seen on the oscillators.

Happy Trading !!
Lakshmi Ramachandran

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