Update for 8th February 2011

 Another Inside Day Candle, Some Upside in Sight ?

• Nifty futures opened slightly higher at 5400 on Monday.
• After testing the previous day's last traded price of 5382 in the morning session, Nifty futures was stuck in a very narrow and flat trading range between 5390 and 5410, till around the 2.00 PM mark.
• Traders may note that the top end of this tight trading range remained just below  or around the contract's previously recorded swing lows of 5411, 5422 and 5425.
• An upward breakout in the afternoon session above the then day's high saw the Nifty contracts reaching a high of 5445. This high was just below the reference level of 5450.
• However, a correction from this minor resistance level attracted a sudden bout of selling, especially once the contract broke below the morning session's high of 5420. Nifty futures fell steeply and recorded the day's low of  5370. 
• Nifty futures recovered from the lows at the fag end of the day and closed at 5405.

 Nifty Futures - Intra-day Chart     

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