Update for 15th March 2011

   Will Nifty Futures Breakout and Start Trending !

• In the last post it was indicated that Nifty futures can move either way as the contract was trading in a technically neutral area. 
• Nifty futures rallied strongly on Monday and closed near the day's high at 5556. On the previous two occasions when Nifty contracts traded above the reference level of 5550 recently,  it retreated from the swing highs of 5589 and 5611 respectively. 
• The Nifty contracts have been trading mostly in a sideways manner for some time and therefore, it is equally plausible that the contracts may correct from the previous swing highs.
• Now the important question before traders is whether Nifty futures will be able to surpass the swing highs and  test the 200 DMA at 5680. 
• Even if the contracts are able to move above the 200 DMA, the 5800 area may act as a strong resistance as of now being the upper boundary of the old trading channel. 

  Nifty Futures - Intra-day Chart

   Nifty Futures  - Daily Chart 

Update for 14th March 2011

   Nifty Futures Still in Neutral Territory !

• Although Nifty futures have made losses in the last two days of the week, the contract never breached the 5400 support area. 
• Friday's trading has again lead to the formation of another doji candle indicating indecision by the market participants.

• The contract is still trading in a technically neutral area from where it can move either way.
• The market may even keep on trading in a trading range for some more time as envisaged in many previous posts, before trying to breakout either way. ( Please see the shaded area as being the previously indicated preferred trading area and pointed out in many previous posts.)
• As far as the market and Nifty futures are trading in a trading range,  most analysis would go awry and would be of no use.
• As such, this author is forced to make no further market commentaries in this post. However all the usual charts, data and trading system updates are appended.  

  Nifty Futures - Intra-day Chart