Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, January 31, 2011

Reigning the Nifty - 31st January 2011

Weekly Chart

Weekly charts have a bearish engulfing pattern after last week's weak attempts at a revival.We now have a convincing trend reversal as per the dow theory of a lower high and a lower low. The support is taken exactly at the 50 % retracement level of the 2010 rally from 4675.Strong support at 4786, low of May 2010 and 38.2% retracement level of rise from 2252 lows.
Stochastics has reached extreme oversold zone . Watch out for an uptick to signal a temporary bottom.

Daily Chart

Trend is clearly down. Strong support zone at 5400-5300. Oscillators and OBV have reached May 2010 lows at 4786.

Half Hourly Chart

The support on the falling wedge is at 5450-5430. Targets of the triangle breakout is at 5400 and the bearish head and shoulder breakout at 5230.

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Happy Trading !!
Lakshmi Ramachandran

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