Update for 13th April 2011

The Mild Correction Continues !   

• As expected, the mild correction which started from the falling trend line continued on Monday. 
• Monday's holiday mode trading has lead to the formation of a so called subtle gap. Whenever the Nifty contracts do not trade at the previous day's close and / or last traded price on the following day, for lack of any other accepted name, this blogger has been calling it as a subtle gap. According to the experience gained, such subtle gaps, especially when formed near the highs after a rally, can sometimes indicate further weakness in the market. 
• However, as the market has already closed downwards for the last five trading trading days, some bounces can also be expected. This is all the more important due to the presence of some positive momentum in the weekly charts.

   Nifty Futures - Intra-day Chart

Update for 11th April 2011

The Mild Correction to Continue ?  

• Though, some of the previous posts were very short, almost every one of them dealt with the resistance offered by the falling trend line obtained by the  joining of  the previous two highs.
• The earlier posts indicated that the resistance for Nifty futures is between 5950 and 6000. 
• No wonder, Nifty contracts slowed down at the resistance and a mild correction has started in the previous two trading days.
• European Central Bank's interest rate action, some hawkish comments on the interest rate front made by a US Fed official, the rising crude oil prices etc may hamper the present rally, at least in the short term. 
• Now the pertinent questions before the traders are :  whether the mild correction will continue or not in the current week, and if yes, which are the  reasonable support levels !  Let's check the various charts to find  a possible answer !

  Nifty Futures - Intra-day Chart

• The intra-day chart of Nifty futures show the way of the mild correction which on at present. Once Nifty futures broke previous two day low of 5880 levels, it remained below the level for the entire day on last Friday.

   Nifty Futures  - Daily Chart