Half Hourly Chart
The Nifty is in a short term downtrend correcting the rally from 4531 which is more than 2 months old and extremely overbought.Breakout above the 200 dema and the downtrending channel from November 2010 are bullish indications of trend reversal and the long and medium term trend remain UP.The fall from 5629 therefore, needs to be treated as a correction to the rise from 4531 as of now.
An inverse head and shoulder pattern has been formed on half hourly charts with a target of 5298.The low of the consolidation made at 5323 is good support too.A fall below this level should be stemmed at 5083-5076 level.
Only a move above above 5537 will turn the short term trend up.Good support at 5323-5076.
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