Nifty Technical Analysis For 24th Jul 09

Nifty Chart - 5 min:

Nifty is formed an Expanding Triangle from 20th July onwards, but volumes are no clearly expanding. Nifty may take resistance from the resistance line of the Expanding triangle which is at 4641 levels. This level keep changing with the time as the slope of the trend line is more. If Nifty breaks the Resistance line of this Expanding triangle then it may act like a continuation pattern. Which may lead market to move up further new highs.

On contrary, if Nifty moves down with low volumes today with out breaking yesterday's high and form a triangle here. Then the chances of forming a Diamond pattern are more here. But its unlikely to happen due to strong global cues.

Nifty Chart - Hourly:

As Nifty moved above 4520 levels this may give support to bulls for moving market to new highs in this rally.

On the higher side Nifty got a resistance zone near 4570-4580 levels. As 22nd July's high is at 4570 level the trend line resistance is also falling in the same resistance levels making it a little bit important. If it breaks this resistance zone then Nifty may reach the Expanding triangle resistance line which is at 4641 levels at present.

On the lower side Nifty formed good support levels at 4460 - 4440 levels, Also the gap formed yesterday is a good support for bulls. For today 4460 levels may give good support for Nifty, if it breaks that it may reach up to 4440 levels. Below 4420 levels Nifty may become weak and may reach the support line of the Expanding triangle easily.