Update for 10th March 2011

   A Flat Close and Nifty Futures Seeking Direction ?

• First a disclosure. This author didn't attend most part of  the trading session on Wednesday. Therefore, this update is kept very short avoiding long market commentaries. However, all the data, charts and system updates are included. 
• Nifty futures as well as the major stocks seem to be seeking direction for moving either way at present. Therefore, market seems to be going through a phase of sideways ranged trading. Here is a quote from the previous post, which might remain very relevant as of now : 'Readers are once again requested to take note that even the best analysis and the trading system outputs are susceptible to become wrong, whenever the market goes in to a trading range. This is because of the fact that trading ranges are formed as a result of haphazard trading with sudden reversals, but mainly confined to a broad range.'

  Nifty Futures - Intra-day Chart

  Nifty Futures  - Daily Chart 

Update for 9th March 2011

  Nifty Future Fills the Gap, Poised to Test Resistances ? 

• We had indicated in the last post that if the gap between the candles of last Friday and Monday is not filled in the subsequent few days, Nifty futures may be forced to test the lower supports.
• However, some easing of the political situation and the crude oil prices has helped the Nifty contracts to nicely fill the said gap on Tuesday.
• Therefore, it seems that, barring any unforeseen developments, Nifty future may test the higher resistances at the swing high of 5600 - 5610. Beyond the swing high, the 200 DMA at 5670 may act as the next resistance.
• Even if the contract surpasses this resistance, the 5800 level may act as a strong resistance being the upper boundary of the trading band.
• Readers are once again requested to take note that even the best analysis and the trading system outputs are susceptible to become wrong, whenever the market goes in to a trading range. This is because of the fact that trading ranges are formed as a result of haphazard trading with sudden reversals, but mainly confined to a broad range. 

    Nifty Futures - Intra-day Chart

  Nifty Futures  - Daily Chart