Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Sunday, July 31, 2011

Reigning The Nifty Monthly and Weekly Update 31st July 2011

 Monthly Chart

The downtrendline from 6338 highs proved resistance once again. The resistance on the trendline for August is at 5682.A simple deduction from this level would be , above 5682 the Nifty could rally to 6042 and below 5682 could melt down to 5440 and lower.

 Monthly Chart showing Volumes

Volumes have been extremely low since January 2010 indicating a complete lack of buying interest. This coupled with moderate selling is seeing the market drift south, thus falling under its own weight.

Weekly Chart

 An outside day pattern which is basically a one day reversal pattern.It indicates some indecision in the market as neither the bulls nor bears were in control for the whole week. However, the big bearish candle on huge volumes could mean more bearishness.Stochastics has turned down below the overbought line and is in a sell indicating more weakness could be in store.

 Weekly Chart II

Did a fibonacci retracement study of the Nifty and found confluence of fibonacci  and  support levels for two price ranges  at 3 levels.Explains the reason why the Nifty is reluctant to stay below 5380 for long.If breaks once again then the 4786 should be strong support with a confluence at that level too.

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Happy Trading !!
Lakshmi Ramachandran

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