Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, October 8, 2012

Reigning The Bank Nifty 8th October 2012

Weekly Chart

Daily Chart

Half Hourly Chart

 Bank Nifty may have started a pullback after the heady upmove from 9814.The long upper shadow on weekly candle shows evidence of the same.
The "outside day" formed on daily charts could be signalling a reversal.An outside day is when the day's candle completely encompasses the previous day's candle. It must have a higher high than the previous day and a lower low than the previous day.The big range of the outside day and the previous day conveys more emphatically that a  trend change may be round the corner.
 The rising wedge shown on daily charts and the negative divergence which continues on  OBV increases the possibility.
Break of the rising wedge should see the gap area of 10643-10797 being tested.So long as this gap holds the uptrend will be intact.
11292-11316 level should prove good support as marked on half hourly charts.Only a move above the high made at 11745 will negate the mild bearishness which has set in.

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Happy Trading !!
Lakshmi Ramachandran

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