Nifty update with chart for 12th to 18th October -2009

Nifty ended this week with -2.72% compared to previous week closing with high volume and increase in open interest.  MACD and RSI – indicating negative divergence for past few months. Now the crucial levels for this week are,

Support          4900 – 4865 – 4830 – 4795 .

Resistance      4991 – 5062 - 5134 – 5206.

Nifty from the daily charts, it’s clear unless it breaks the 4900 level – there is no risk for the longs. So, buy on dips with stop loss 4900 or use any bounce to short at higher levels round 5030 with stop loss 5062. Short term shorts should be imitated only below 4900 for target 4750.

Nifty daily chart

 5 DEMA  - 4988  20 DEMA  - 4935    
50 DEMA  - 4756