Place a small drop of a negative stain (India Ink, Congo Red, Nigrosin, or Eosin) on the slide.
Congo Red is easier to see, but it does not work well with some strains. India Ink generally works, but it has tiny particles that display Brownian motion that must be differentiated from your bacteria. Nigrosin may need to be kept very thin or diluted.
Using sterile technique, add a loopful of bacterial culture to slide, smearing it in the dye.
Use the other slide to drag the ink-cell mixture into a thin film along the first slide and let stand for 5-7 minutes.
Allow to air dry (do not heat fix).
Flood the smear with crystal violet stain (this will stain the cells but not the capsules) for about 1 minutes. Drain the crystal violet by tilting the slide at a 45 degree angle and let stain run off until it air dries .
Examine the smear microscopically (100X) for the presence of encapsulated cells as indicated by clear zones surrounding the cells.