Reigning The Nifty 6th July , 2010

Daily Chart

Nifty  formed a doji today on eexxttrreemmeellyy  low volume. Macd on daily charts is in sell mode.

Support at 5206-5191.  Resistance at 5308-5315.




Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 5th July , 2010

Weekly Chart I

Weekly Chart II

Last week Nifty  formed a shooting star which was highly bearish. Bearish confirmation is required after the Shooting Star and can take the form of a gap down or long black candlestick on heavy volume.The bearish confirmation on the Nifty did not confirm with a gap down or a long black candle nor were the volumes heavy. However forming of a lower high lower low candle shows lack of strength to move beyond the high of the shooting star.The fact that the move past 5367 to scale the previous peak at 5399 made 2 months ago has been eluding , adds to the bearish possibilities.

The stochastics is overbought, the Rsi 14 continues to make lower high and lower low since October 2009, Macd too has been in tandem with the Rsi 14 and is in a sell mode. Only a move above 5367 will nullify the bearishness.

Last week I showed Chart II where  the downtrendline from January  2010  joining highs made in the rally from March 2009, being strong resistance at first but nifty finally scaled it to make new highs in the rally. The Nifty may thus correct some more only to finally scale the trendline.The Nifty seems to be confirming this view as of now.

Weekly Support at 5195-5049  and   Resistance at 5284-5323.

Daily Chart

Daily Charts show a decisive close below the uptrending channel giving support to the follow up bearishness necessary for the shooting star.However, the correction from 5367 is showing a flag formation which will prove bullish if the resistance at 5313 is overcome. Bearishness continues if the support from this flag  at 5196 is broken.

Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 2nd July , 2010

 Daily Chart

 The Nifty has shifted the range a little on the downside to 5206 and range trading will be difficult. The uptrending channel has been broken on the downside projecting more weakness than strength.

Resistances are at  5280-5298-5319. Supports at 5206-5150-5069.

Stops for longs could be placed at 5150 as the area of 5167-5150 should be strong support.


Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - Monthly Update July , 2010

 Monthly Chart

Monthly Chart II

• Rising wedge formation of the entire rally from March 2009 which is bearish.
• The entire rise since May 2009 has been on falling volumes.
• The target of the rising wedge is 2356.
• Nifty has closed below the wedge for the second month consecutively. 
• Oscillators have been in negative divergence since some time and continue to show weakness.
• The Nifty has been in a range of  around 850 points since September 2009. Break below this range at 4538 will give an immediate target of  3676.

Monthly charts are not too robust since some time as oscillators have been showing falling momentum.  July will give a clearer picture of the effects of the rising wedge.

June was a positive month on rising volumes and ended close to the upper part of the range. The candle was also a higher high higher low raising hopes of more strength. Maintaining above 5295 will give strength to attempt 5400-5550.

Targets of the rising wedge given here may take a long time to be achieved as short term action will be guided by shorter term charts.


Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 1st July , 2010

 

 Daily Chart

Nifty took support exactly at the level of 5210 mentioned yesterday. The uptrendline has been maintained on a closing basis though intraday it was broken .Daily oscillators have turned up without reaching the oversold zone which is a sign of strength.The nifty has recovered and moved above the 61.8% fibo level of fall from 5367-5210. This shows that  nifty has strength to target 5367 and above that 5400.

Support at 5295-5277-5260.  Resistance at 5324-5339-5350-5367.



Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com