Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, February 7, 2011

Reigning the Bank Nifty - 7th February 2011

Weekly Chart

Seeking support around the 61.8% fibo level of rise from 8806 , the Bank Nifty has been successful in doing so for the past 4 weeks. The doji  formed this week is a gravestone doji which can have bullish implications in a downtrend. The long upper shadow indicates bulls were successful in moving the bank nifty to higher levels  and the small lower shadow signifies waning of bear strength. Confirmation is required by the next weeks candle .For a reversal to occur a strong follow up candle is required next week with solid volume.

Daily Chart

Friday's candle was an outside day . This is often taken as a signal that the market is about to make a move in the direction of the close.In fact Friday's candle is encompassing the range of the last six days. The close too was the lowest of the range days. OBV too shows continued weakness. 

Support of 10373 has held for almost a month. A break below this will bring in panic selling. If the upper end of the range at 10772 is taken out decisively only then can a good pullback be expected.The 200 dema offers stong resistance at

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Happy Trading !!
Lakshmi Ramachandran

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