Update for 1st December 2010

  Nifty Future Breaks the Resistance at 5865, But 5940 Stays ! 

The last post indicated that since the Nifty future was unable to surpass the two day high at  5865, the contract may  test of the lower end of the trading range before trying to break above this reference point. It was also indicated that Nifty future has support at the 5750 to 5775 area and the top end of this support also coincides with the 100 day moving average. Now, let's check what happened during  Tuesday's trading. Even though the contract recorded an open of 5850, the actual trades in the initial minutes were below the 5820 levels. It is normal for markets to trade in very flat ranges before the announcement of any major market moving economic data. As the second quarter GDP data was  due by 11.00 AM, Nifty futures traded sideways till that time but stayed inside the tight range between 5915 and the previous day's low of 5788.

Nifty Futures - Intra-day Chart    

Update for 30th November 2010

  Nifty Futures Face Resistance at 5865 !

In the update for 29th November, we had stated that in the absence of any fresh negative news and the if the Ireland bailout announcement is made as expected, these factors may pave the way for another retest of the 5860 level by the Nifty futures. It was also stated that in case of any fresh break out of adverse news, especially about any market manipulation with the bank borrowings, the downtrend continue for the time being. By Monday morning, there were not much new negative news and the Asian markets were trading mostly flat to positive. The SGX Nifty contracts were indicating a positive open too. As such, the Nifty futures opened some 28 points higher from the last traded price at 5800. This open was at the midpoint of the previously indicated reference levels of 5820 and 5775. The futures immediately traded to the 5820 area and from there, it tried to test the previous day's last traded price as well as the lower reference level of 5775. 

Nifty Futures - Intra-day Chart