Update for 28th December 2010

 Some More Sideways Trading or a Test of Supports ?

Nifty futures opened flat on Monday and almost immediately in the opening session, it started to trade above the previous day's high as well as the swing high of 6043. As the up move could not be sustained at the higher levels of 6060, especially because of  some weakness seen in the commodity stocks, Nifty futures slowly traded lower and breached  the 6030 reference level in the afternoon session. The day's low was at 6005 and the close was at 6007. The intra-day chart of Nifty futures shows the low volume holiday trading of Monday. As the markets are still finding it tough to rise above the 6100 levels, we can expect some more sideways trading at the best, before the expiry. An alternative scenario could be a test of the 5940 area and to take it from there in accordance to the then behavior of the market.    

   Nifty Futures - Intra-day Chart       

Nifty Futures  - Daily Chart    

Update for 27th December 2010

   Nifty future Closes at the Swing High, Now What ?

In the last posts of the previous week, this author had indicated that Nifty futures may trade sideways in the low volume holiday market, with a mild positive bias. Last Friday, Nifty futures opened slightly lower  than the previous day's last traded price and almost immediately recorded a low of 5966. This low was 5 points below the previous three trading day's low at 5971. Since low volume holiday markets are liable to record freak trades, this author had also indicated that traders may carefully observe any breach of the three day  old narrow  trading range as well as the breach of the inside day candle of Thursday. Now let's check the intra-day chart of Nifty futures to find what happened on Friday.  

   Nifty Futures - Intra-day Chart