Update for 4th July 2011

  Another Test of 5700 - 5750 Resistance Level !

Due to the fall in the market heavy weight stock Reliance, Nifty futures reversed from the 5700 level on last Friday. Even otherwise, the Nifty contracts were due for some pause or a small correction due to the non-stop nature of the recent rally. As the international markets have rallied further, we may expect a higher open and possibly, another test of the 5700 - 5750 resistance level. Nifty future may face multiple resistance from the 200 day simple moving average ( DMA ) at 5760 and the falling trend line drawn from the last November high. ( Please see the various charts below for details  ).

Nifty Futures - Moving Averages Chart ( DMAs )  

Nifty Futures - Daily Chart

Update for 1st July 2011

  Nifty Future Touches the 5700 level !

The Nifty futures contract touched the lower end of the expected 5700 - 5750 target this morning. Please read the previous posts for more information on this expected target. Now, as already pointed out in the previous post, the front line stocks may take a breather while the second rung stocks may continue to rally. 

Nifty futures - Daily Chart