Update for 30th December 2010

  At Last, A Close Above 50 DMA !

After spending a lot of time in a tight trading range between 5965 and 6065 for the past six trading days, at last, Nifty futures rallied on Wednesday. For the first time since the 16th of November 2010, Nifty futures have closed above the 50 day moving average ( 50 DMA ) as on Wednesday. Wednesday's market action seemed to be decisive, even though the rally still lacked good volumes. Even though the advancing stocks in the underlying index outnumbered the declining issues, the gains were mostly achieved by a handful of select blue chip constituents of the index. Nifty futures opened flat in the morning and immediately went on to test the reference level of 6030 - 6035. It spent some time trading around these levels. Once the futures broke above this level, a slow rally ensued till the swing high of 6065. In the dying minutes of the trading day, Nifty futures broke above this minor resistance and closed at 6074.50 which incidentally became the day's high.

    Nifty Futures - Intra-day Chart   

Update for 29th December 2010

   More Sideways Trading or What Now ? 

Some Random Comments - It seems that some random market commentary is in order, as the market has not been doing anything  interesting at all now a days. Most markets become moribund at this of the year because of the holiday season and the reluctance of fund managers to trade in the low volume  holiday markets. Therefore, Indian markets are also undergoing this seasonal trading pattern at present. However, the strange thing about the present day market is the weakness or the lack of participation of a whole lot of index stocks from as many sectors to participate in the current rally or upswing which started from the 5750 levels on 10th December, 2010. By the end of Tuesday's trading, it seemed that only stocks from the IT and Pharma sectors were upholding the index at these levels. Another broad sector, the commodities sector, which exhibited some strength recently,  too seemed to be loosing the strength. Now the question is - which is the sector or stocks capable of rallying further from here ? A cursory glance at the charts of most index stocks do not present much hope for a rally in the new year, unless the FIIs come in droves to buy in to the markets again !

    Nifty Futures - Intra-day Chart     

        

Nifty futures traded between the reference levels of 6000 and 6030 for the whole trading day. There is nothing more to write home about Tuesday's trading.