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Thursday, January 24, 2013

Reigning The Nifty 24th January 2013

Daily Chart

Daily Chart II

Half Hourly Chart
Nifty formed a doji which made a lower high lower low keeping the bias down.The Outside day pattern made yesterday resolved to the downside making it more probable the downmove could continue.The uptrendline from 5941 was violated but Nifty took support at the 50% fibonacci level of the rise from 5941 to 6101 and bounced back to retrace 55% of the fall from 6101 to 6021.

 Support was taken at the uptrendline from 5548 as can be seen on Daily Chart II.Support for tomorrow is at 6040.On half hourly charts Nifty is still to make a new low below
5989. Till that happens the bulls can make a comeback.

Resistance now is at 61.8% at 6070 which was also today's high and the 76.8% at 6082. Only a cross and close above these levels will give strength to continue the upmove.

Nifty is at the crossroads and whipsaws will wipe out all profits earned in the bull run from December 2011.Trades have to be nimble and done with expertise.It is prudent to stay on the sidelines and wait for clarity.

Resistance will be at  6070-6082-6101  and Supports at 6040-6021-5988.

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Happy Trading !!
Lakshmi Ramachandran

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