BANKNIFTY VIEW FOR 7TH SEP 2012

IMPORTANT POINTS FOR TRADING

• Banknifty closed below two very strong EMA i.e.  200DEMA & 100DEMA  which comes around 10065 & 10145 respectively.
• Yesterday banknifty has made a 'bullish harami candlestick pattern' which is a reversal pattern and needs follow up confirmation.
• On upside immediate resistance  comes around 10035-10065 zone and than 10130-10150 zone.
• Banknifty is breaking every contracting triangle patterns one by one and now last one more triangle support comes around 9740.
• Banknifty is weak as long as it stays below 100 & 200 DEMA and weekly agni level & JBNSAR  levels 10208-10276.
• Banknifty is highly oversold in Daily chart and might give a rally.

BULLISH HARAMI CANDLESTICK PATTERN

• The bullish harami is made up of two candlesticks. The first has a large body and the second a small body that is totally encompassed by the first.  This may signal a trend reversal since the second day’s small real body shows that the bearish power is diminishing.The decisive fact about this pattern is that the second candlestick has a minute real body relative to the prior candlestick. Furthermore this small body is completely inside the larger one. The Bullish Harami Pattern does not necessarily imply that a rally will follow. Market usually enters into a congestion phase following the Bullish Harami.
  
  We may need a third day confirmation to be sure that the downtrend has really reversed. This confirmation of the trend reversal may be signaled by a white candlestick, a large gap up or by a higher close on the third day.

NOTE: VERY SOON INCORPORATE A STRATEGY FOR CONSERVATIVE TRADE FOR THE ONE  WHO DONT WANT TO TRADE INTRADAY BUT TO HOLD FOR A SHORT PERIOD.