Update for 15th April 2011

 A Short Covering Rally, Infosys Results and After !   

 

•  As this author is on a holiday, this edition of Ultimate Momentum Signal contains only the basics data and charts.

• Traders may note that the previous posts had opined that the underlying positive momentum in the weekly charts may prevent the market from falling much and this may  turn the previous sell signal in to a whipsaw. Therefore, it was advised that some part booking of profits and hedging of short positions, if any, at the first support area 5725 to 5750 would be desirable. 

    Nifty Futures - Intra-day Chart

    Nifty Futures  - Daily Chart 

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