Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Wednesday, January 19, 2011

Reigning the Nifty - 19th January 2011

Daily Chart

Half Hourly Chart

Yesterday I wrote " A doji was formed at the 200dema support. This could prove bullish if tomorrow's candle is positive and closes above today' close not making a new low.Doji's indicate indecision and normally signal that the current trend may be reversing.

This view is supported by positive divergences on half hourly charts.The fact that today's opening high was crossed intraday but the lows  not even visited, gives some credence to this view.Holding the 200 dema is another positive".

The Nifty made a bullish candle with a gap up and held well all day to close up by 70 points. The bounce of 200dema is bullish. However the hurdle of crossing the  downtrendline, which has been easier to draw on half  hourly charts,  at 5730-5690 is necessary to confirm short term bullishness. A close above 5750  is the another important criteria.The minor high at 5874 is the next hurdle.

Supports at 5705-5672-5637-5624.

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Happy Trading !!
Lakshmi Ramachandran

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