Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, March 26, 2012

Reigning The Nifty 26th March 2012

Weekly Chart

Weekly Chart II

Bullish Indications :Breakout from the downward sloping channel of November 2010 to December 2011 intact.40 & 100 wema in buy. Price bounced off both 40 & 100 wema after taking support on them.         Only  40 % of the rally from 4532 retraced and this low of 5171 held for the third week in a row.The bullish flag forming during correction from 5629 still valid.Rsi14 above 50 level.Medium and long term moving averages 50,100 & 200 wema bullishly aligned.
Bearish Indications : Lower low lower high candle formed.Uptrendline from the lows of this rall joing swing low of 5171 has been broken. Stochastic has moved below 50 level.macd given a down tick. 20 wema still bearishly aligned with the 40,50 & 100 wema.

Daily Chart

Bullish Indications : Support taken on the red trendline joining lows 5076 and 5171.Closed above the 50 dema and green trendline once again.20,50,200 dema bullishly aligned.Flag pattern still valid.Bounced off the 200 dema
Bearish Indications : An inside day pattern after an outside day pattern showing confusion. 5 and 20 dema bearishly aligned.Macd continues to give a downtick and now in negative territory. Stochastics and Rsi14 below 50 mark.Nifty continues to be be below the uptrendline from 5432.

Half Hourly Chart

Nifty is in a short term downtrend and will reverse the trend only if successfully moves above 5500 which is the lower top made on 14th March 2012.Till the low of 5171 is not taken out chances of breaking out from the flag formation is high.If 5171 breaks then technically the Nifty would  resume it's downtrend having made a lower high and lower low.It would be prudent to watch whether the flag support survives the bear onslaught and then declare the trend down.
Fibo resistance on the way up to 5500 are at 5318-5344-5388.

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Happy Trading !!
Lakshmi Ramachandran

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