Update for 7th February 2011

  Another Day of Losses, But What Now ?

• Last Thursday, Nifty Futures bounced back after making  losses in five out of the six previous trading sessions and closed very near to  the resistance at 5550.
• It seemed that some more upside might be forthcoming on Friday on the back of the previous day's momentum.
• On Friday, markets opened slightly lower, but tried to continue with the upward movement in the morning session.
• After hovering between 5540 and 5510 for an hour or so, Nifty futures broke above the resistance level of 5550.
• However, the breakout lacked follow up buying and it turned out to be a real bull trap.
• Once Nifty futures broke below the 5550 level again, all round selling started and the contract reached the lower reference level of 5450.  
• Another bout of selling in the last hour of trading saw the Nifty contracts recording a new swing low of 5356, which almost coincided with the already indicated minor support between 5340 and 5350.
• Nifty futures closed for the week at 5382.

 Nifty Futures - Intra-day Chart     

Update for 4th February 2011

 At Last the Bounce Happens, But What Now ?

• Nifty futures opened on Thursday exactly where it closed on Wednesday.
• After the open at 5432, the Nifty futures contracts traded between 5425 and the reference level of  5450 for a short time.
• But once the Nifty contracts crossed the reference level of 5450 on the third test, the contracts rallied strongly towards the previous day's high of 5510.
• But the previous day's high was only a minor obstacle in the path of the Nifty contracts as it rallied further for a test of 5450. 
• The Nifty contracts traded in a tight range between the previous day's high and the day's high of 5545 for the rest of the day and finally closed at 5539.

Nifty Futures - Intra-day Chart