Update for 6th April 2011

Markets Takes a Breather, Now What ?

•  This late update of the Momentum Signal trading system  contains only the basics of the system due to some time constraints.The inconvenience is regretted.

     Nifty Futures - Intra-day Chart

  Nifty Futures  - Daily Chart 

Update for 5th April 2011

   Will the Markets Take a Breather Now ?

• Nifty futures continued with it's relentless up move on Monday, though a slight slow down or some more of sideways trading was expected.
• It seems that the market at present is lead by those FIIs who are short term momentum traders. The weakness in the Dollar index is also pushing them to buy non Dollar assets whereby they benefit from the asset price rise as well as the currency appreciation. However, generally speaking, such sudden rallies have not been much beneficial to the market in the longer term, as when the momentum traders ( read FIIs ) start selling, the gains may disappear just like the way it appeared. 
• As the rally has already run vertically and gained so much in such a short time frame, some slow down to the relentless move can be expected now. The rising crude oil prices may act as a break to the fast rally at any time.
• However, as matter of abundant caution, it may be noted that the present rally which came after a long period of sideways trading can travel much higher than the popular expectations.

    Nifty Futures - Intra-day Chart

  Nifty Futures  - Daily Chart