Update for 8th July 2011

    Index and Futures Reach 200 DMAs !

Nifty futures contracts and the underlying index have almost reached the target of 5750 - 5760 mentioned in some of the previous posts. Since the 200 DMA  coincides with the falling trend line, it is still not clear whether the rally would be able to break above these resistance area now, or later on, after a sideways move or a correction.

Nifty Futures - Daily Chart   

Update for 7th July 2011

    Three Days of Consolidation and What Now ?

After three days of consolidation in the form of sideways trading, Nifty futures contract is seen trying to test the resistances today morning. It is almost impossible to outguess the outcome of this test as of now. Apart from the above, there is no change in the technical position of the market. Please read the previous posts for more analysis on support and resistances. A breakout above the immediate resistance in the 5700 - 5750 area is necessary for the continuation of the rally and a change of outlook for the medium term. A failure may lead to a revisit of the 5550 levels in the short term.  

Nifty Futures - Daily Chart