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 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.
follow me on twitter http://twitter.com/#!/lucksr
Happy Trading !!