Update for 14th June 2011

   Nifty Futures Remain in the Range !

Though Nifty futures broke the 5480 and 5450 minor supports in the two previous trading sessions, the closes were above or around the 5480 support. These higher closes as well as the very low volumes seen at the lower end of the trading ranges in the two previous trading sessions were actually the symptoms of the earlier indicated recent resilience. As the market has already recovered from the 5400 - 5450 support, now the question is whether the market will remain in the trading range for some more time or try to breakout above the range. Since the market participants are keenly waiting for the impending RBI  action, market is more likely to trade in the present range than trying to make a breakout.   

Readers of this blog are requested to note that the Momentum Signal is prone to make whipsaw signals in ranged markets and the fact is already elaborated in the Risk Factors page.

   Nifty Futures - Intra-day Chart    

  Nifty Futures  - Daily Chart 

Update for 13th June 2011

     Nifty Futures in Downtrend ?

Nifty futures broke the minor support of 5480 on Friday. The contract traveled to the next lower (old) reference level of 5450 and then recovered to close around the support area. As the international markets seem to be entering in to an intermediate term downtrend, Nifty also may also lose the recently seen minor resilience. As a first step, it may revisit the lower boundary of the old trading channel. ( Please see the channel in the weekly chart of Nifty index below.)  The next support areas or reference areas are 5325-5350 and 5175-5225. A break of the lower support of old trading channel may also force the markets losing the long term support  leading to a deep correction.

     Nifty Futures - Intra-day Chart   

  Nifty Futures  - Daily Chart