Thursday, June 5, 2008

Nifty - Piercing pattern !!

I presume those of you who read my blog on 26th May - Reliance waiting to fall - when the price was at 2480; would have booked profit at the indicated level of sub-2200. The scrip touched a low of 2175 today ...



Nifty today showed a good upmove in intraday and has formed on the daily charts what is known as a 'piercing pattern' (Japanese candlestick). It indicates a temporary halt to a down move.

Nifty's corrective rise is after a continuous fall for last 12 days...(today is the 13th day - - a fibonacci day!)

Consider 4635 as a crucial intraday support for tomorrow - Friday - and resistance at 4735 - 4775 levels ...

And yes - SBI's chart suggest a corrective rise to 1450-1475 levels !!

Happy Trading

CA Rajiv D Khatlawala

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