Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Sunday, December 9, 2012

Reigning The Bank Nifty 7th December 2012

Daily Chart

Half Hourly Chart

Bank Nifty corrected for a good part of the trading session  but gave a surprise recovery in the last hour and a half forming a candle with a long lower shadow and small real body resembling a hanging man. The candle has hit the resistance line of the bearish rising wedge and closed below it which is a point towards  bearishness and a possible move towards it's support line.

A Hanging Man pattern which is a bearish signal indicating that the  uptrend  may   end and may reverse to a downtrend or move sideways.The Hanging Man has a long lower shadow that should be at least twice the length of the Real Body. The upper shadow should be very small or non-existant.The longer the Lower Shadow ,the smaller the Real Body and the Upper Shadow of the Hanging Man the greater the significance of the pattern all of which are conformed by the candle on Bank Nifty except the real body ( Real body is the area between open and close).
However the hanging man is not a perfectly formed one so we may wait for confirmation of  tomorrow's candle to go bearish.A trade and close below the real body at 12428 will give a signal of more bearishness.

Half hourly charts look bullish and show room for more upsides towards 12700.Supports in case of weakness are marked on the charts.

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Happy Trading !!

Lakshmi Ramachandran

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