Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Friday, August 3, 2012

Reigning The Nifty 3rd August 2012

Daily Chart  

Half Hourly Chart 

The Nifty made a Harami pattern.As per the characteristic of the pattern, a large, real body clear candle was made immediately preceding the harami candle. This candle showed the bulls to be fully in control. However,the next day, that is today,  a small real body candle appeared within the larger real body of yesterday's candle. This is the harami candle. The lower high lower low of the harami candle and the failure to test the gap resistance at 5267-5306 increases the bearishness of the pattern.

However, with the trend following emas showing strength Nifty may only be taking a breather with a sideways move.Flag formation shown in red on half hourly charts indicates the same.

Tomorrow's candle needs to be watched keenly to guage whether  the short term rally has indeed changed direction.

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Happy Trading !!
Lakshmi Ramachandran

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