Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Sunday, November 11, 2012

Reigning The Bank Nifty 9th November 2012

Half Hourly Chart

Yesterday I said " Half hourly charts show the Bank Nifty resisted at  uptrending channel's  resistance line.Logically it shoul test the support line which has support at 11564-11729.Flag resistance line is   now support at 11577-11570".
Bank Nifty enacted the script after opening gap down and breaking below the flag resistance line.Support was taken around 55%  retracement level and the close was however abovethe flag resistance line keeping bullish hopes intact.Closing below the breakout level of 11657 was a dampner.In the process an 
"Inside Day" pattern was formed.

An Inside Day is a day that has a lower high and higher low than that of the prior day.Simply put, the high and the low of the previous day are not violated. Inference of this is, the market may be catching its breath before another up or down day. It could be indecision between bulls and bears . Or, it may be hesitation by the market players who are wary whether the current trend will continue .

The "Inside day" can become quite powerful when it occurs during a long-lasting trend, and can therefore signal a reversal. Could this be applicable now? We cannot say till confirmation of other signals.First signal would be breakout above or below the high or low of the pattern which is 11719 & 11519 respectively.
The trend is still up and will be in danger only if the recent low of 11125 is breoken decisively.

Immediate resistance at gap area of 11665-11638-11719-11745.Support at 11557-11533

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Happy Trading !!

Lakshmi Ramachandran

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