Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, March 14, 2011

Reigning the Nifty - 14th March 2011

Weekly Chart

Weekly Chart II

An "Inside" pattern on weekly charts which has the upper end at 5608 and lower end at 5308.  Chart II keeps bullish options open with a falling wedge having 5500 as resistance and 4935 as support.Trading has been within the channel formed by joining highs of Jan & April 2010  and lows of  Feb and may 2010. Support and resistance on this channel is at 5095-5733.

Strong  supports  for the coming week   5308-5095-4935  and  resistances 5500-5608-5733.

Daily Chart

Daily Chart II

The 50 and 200 dema have started trending downwards and the Nifty  breaking down from the tiny triangle indicates  bear pressure. Only a trade above 5608, which is a very strong resistance area --  5608 is the high made after the fall to 5177 and the 50 dema and 200 dema are at 5575 and 5595 respectively --,  will bring back some bullishness .

 Half Hourly Chart

Half Hourly Chart II

Half hourly charts  still playing out the   double bottom and a double top  mentioned in my post of  7th March. Crossing 5608 will confirm a double bottom and a fall below 5232-5177 will confirm a double top. Whichever way it breaks will give a move in that direction of 370 points.

The diamond pattern proved bearish and has a target of 5302.This level is also weekly support on trendline joining lows of 5177 and 5232.

As shown in Chart II 5408 has been  support on several bear attacks. The diamond pattern and the pink decending triangle  indicate  5408 may be under threat  and  the double top will have it's way !! Stops at 5408 on short term longs would be prudent.

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Happy Trading !!
Lakshmi Ramachandran

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