Update for 19th January 2011

    Will the Tentative Up Move Continue ?

Following the formation of a narrow range inverted hammer candle on Monday, Nifty futures opened higher on Tuesday as expected. We had indicated in the previous post that the inverted hammer candle may be indicating a minor or a major reversal from an area which is just above the 200 DMA. Nifty futures opened at 5678 and almost immediately went on to test the immediate higher minor resistance at 5725. The Nifty contracts corrected from there to record the day's low of 5772 in the morning session itself. Nifty futures spent most of the trading day between 5680 and 5710 before moving upwards in the last half an hour of trading. The up move seemed to be a tentative one and was lacking much enthusiasm. ( Well this is a personal opinion and such opinions can  be wrong also. )

 Nifty Futures - Intra-day Chart

Update for 18th January 2011

     Market Takes a Breather,  But Will It Reverse From Here ?

If you were a Nifty futures trader, almost nothing of any significance happened in the markets on Monday. In fact, the market took a breather on Monday lead by the pivotals, after falling 200 points in just two and a half hours of trading on last Friday. Nifty futures opened at 5640, slightly below the previous close on Monday. But after establishing a low of 5629, which is just above the 200 DMA levels, the futures contracts remained in a comparatively narrow trading range for the entire trading day. Nifty futures established an intra-day high of 5705, but the close was at 5660. However, most stocks continued their down moves on Monday as indicated by the very negative advance decline numbers.

 Nifty Futures - Intra-day Chart