Update for 18th May 2011

  The Defensives Stand Tall !

• In spite of  a shocker by SBI and weakness in pivotals like Reliance, ONGC and the other rate sensitives, the defensive stocks from IT, FMCG and Pharma have stood like a rock preventing severe damage to the market on Tuesday.
• Therefore, as indicated in the previous post, the fall in Nifty futures has not been very convincing move on the part of the bears.
• However, some weakness in the so called strong shares may keep the downtrend going further as new downward breaks were seen in some of the big stocks like Reliance, SBI, Tata Steel etc.

  Nifty Futures - Intra-day Chart

    Nifty Futures  - Daily Chart

 

Update for 17th May 2011

 Neither the Bulls nor Bears Seem to be Convincing !

• Nifty futures fell on Monday with a gap from the previous day's close. But the selling did not seem to be convincing as no panic or heavy volumes were seen.
• Momentum Signal indicated another sell. But this sell signal will be confirmed only if the market breaks the 5440 swing low. 
• Readers may please note that re-entries to an already established trend can be riskier than a fresh entry in to a developing trend as the latter has more surprise value and is capable of trapping and hurting more traders. 
• As neither the bull nor bear moves seem to convincing, trading may remain choppy.

  Nifty Futures - Intra-day Chart

    Nifty Futures  - Daily Chart