Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, February 7, 2011

Reigning the Nifty - 7th February 2011

 Weekly Chart

Nifty is approaching the strong support area of 5349. A bounce should be used to lighten long positions and hedge one's core portfolio.A fall to the support line at 5063 is imminent.OBV  supports the continued weakness.

Daily Chart

Daily charts too in a consistent downtrend. The second pennant broke down yesterday giving a target of 5200.  Support  around the 5350-5200 area is a good confluence of Fibonacci as well as previous support levels.  This area also coincides with the head and shoulder target of 5230 which I have been showing on half hourly charts.Partial booking of shorts could be considered at these levels.

Half Hourly Charts

Half hourly charts show the latest action in a broadening formation(shown in green) within a falling wedge (shown in red). Both are bullish patterns.The breakout points from these patterns may be used to book shorts. However,wait  for a other indicators to lend support to the bullish view before going long.

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Happy Trading !!
Lakshmi Ramachandran

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