Update for 14th February 2011

    

A Dead Cat Bounce or a Reversal ?

• Last Friday, Nifty futures opened slightly higher at 5241 and immediately sold off to the previous day's close of 5225.
• The Nifty contracts spent some time between 5225 and 5240 before breaking the reference level of 5225.
• Nifty futures sold off to record a new swing low of 5175 in the morning session. However, it seemed that the volumes near the new low were drying up after some time.
• Therefore, the Nifty contracts tried to recover. The recovery almost continued till the end of the day so that the Nifty contracts closed above the previous day's trading range at 5313.  

    Nifty Futures - Intra-day Chart  

Update for 11th February 2011

    Some Stocks Recover, But No Signs of any Reversal ?

• Nifty futures opened lower at 5250 on Thursday. 
• Most of the day's trading in the Nifty contract was confined in a trading range consisting of the reference / support of 5225 and the previous day's ( Wednesday's ) last traded price 5285.
• Many highly oversold shares recovered some of their losses on Thusday.
• However, the  previous day's rescuers of the market, in the form of the Nifty heavy weights like Infosys, Reliance, SBI etc, mostly fell on Thursday.
• Advance declines data still  favored the negative side.
• No capitulation of the heavy weights has happened yet. ( At this point no one knows whether a capitulation involving the index blue chips will occur or not ! )  

   Nifty Futures - Intra-day Chart