Update for 3rd December 2010

   Nifty Future Ends Higher, But Ends Flat Intra-day !  

Nifty future was expected to open higher on Thursday on the back of the fresh buy signals in the contract and the BSE Sensex  and also because of the overnight rally in the European and US stock markets. The last post indicated that the immediate higher resistance above the market is at 6030 level. Therefore, Nifty future opened higher but remained just below this level not only at the open but also for most part of the trading day. As the futures found it difficult to cross the resistance, especially after a fast and significant rally in the previous two trading days, it tried to test the previous day's last trade or at least the previous day's high. This test ended exactly at the previous day's high at 5991. Since the trading was confined to a tight range, the futures tried to test the highs as well as the 6030 resistance at the fag end of the trading day. It partially succeeded in breaking the resistance but  closed below the resistance at 6026. Now, lets check the intraday chart of the Nifty futures to find why this might have happened and also to understand an intraday day trading technique which could be used in very narrow ranged markets.

Nifty Futures - Intra-day Chart        

Update for 2nd December 2010

  December too Starts with a Bang !  

We stated in the last post that a test of the 5940 area by the Nifty future was expected, since the market  is bouncing from the 100 DMA and it had already tested the breakout point of 5865. It was also stated that closes above the 5940 level will indicate trend reversal as it will lead to the Nifty futures going back to  the previous trading range. Now both these conditions have been met and it can be considered that the present downtrend has finished. Or put in other words, it has become a buy on decline market. 

Nifty Futures - Intra-day Chart