Update for 31st May 2011

    The Test of 20 DMA is On !

• Nifty futures closed flat yesterday, just below the 20 DMA.
• Generally speaking,  the 15 or 20 DMA acts as support or resistance in short term trends, in the daily  charts.
• As such, the positive scenarios described in the last post is dependable on a successful test of the 20 DMA by the Nifty future. As on Monday, the 20 DMA closed at 4480.

 Nifty Futures - Intra-day Chart    

 

      Nifty Futures  - Daily Chart  

Update for 30th May 2011

   Has Some More Strength left in the Latest Bounce  ?

• As indicated in the previous post, Nifty future has bounced from expected support of the 5350 - 5400 area, albeit after a mild crack. 
• This area had recent supports from both technical and fundamental points of view.
• Now the question is whether the bounce has the fire power to rally more ! In the last post, it was mentioned that since the bounce came from the supports, it may try to test the middle area of the old trading channel. 
• Now, let's continue the scenario analysis  with the help of various charts, data and the Momentum Signal.    

 Nifty Futures - Intra-day Chart     

     Nifty Futures  - Daily Chart  

S&P CNX Nifty Index - Weekly Chart