Update for 29th March 2011

   Nifty Futures Poised at the 200 DMA !

• Nifty futures opened flat on Monday morning and moved upwards with the help of it's positive momentum  retained form the previous week.
• As pointed out in the previous post, Nifty future has already reached the 200 DMA at the 5700 levels. As indicated in the previous post, some more profit booking may come in to the market at these levels. 
• Moreover, the market has already made strong gains continuously for the past five trading sessions. It is not very common for the major stock indices to make straight gains for more than five to six trading days.
• These two factors may now lead to some kind of a consolidation or a mild correction happening in the market. 
• However, the market remains in a 'buy on decline mode' as of now due to the presence of the recent positive momentum. 

   Nifty Futures - Intra-day Chart

Nifty Futures  - Daily Chart 

Update for 28th March 2011

  Finally, the Breakout Happens !

• The last abbreviated post was titled "   Indices Again  in the Positive Momentum Territory ! "  due to a new buy signal obtained from the Momentum Signal trading system on Thursday.
• However, it was not known whether the buy signal may lead to a breakout or not  due to the primarily sideways kind of trading being seen in the past few weeks.
• Friday's market action has now confirmed the breakout. The market has been showing some other subtle indications also pointing towards a breakout to the upper resistances.
• The first of these indications was the reversal from the support at 5350. The second was a a subtle gap which occurred on Thursday. ( Subtle gap - Nifty futures never traded at the Wednesday's last traded price and the high on Thursday thereby leaving small gaps. )  The third and most important one was the close of Nifty futures above the the 50 day moving average after a long period of two and a half months. 
• Therefore, all these technical signals have lead to new FII buying on Friday and this has helped the market to surpass the higher resistances between 5600 and 5650 levels very easily. 

   Nifty Futures - Intra-day Chart

Nifty Futures  - Daily Chart