Update for 14th July 2011

  Nifty Futures Still Supported by the 50 DMA ?

The gap seen in the daily chart of Nifty future was filled yesterday. But the gaps in the daily charts of the Nifty and Sensex  are still open and this makes the technical position tricky. Except for these comments today's update is limited to just charts and system updates. 

Nifty Futures - Daily Chart    

Update for 13th July 2011

 Nifty Futures Supported by the 50 DMA ?

Nifty futures reversed from the 200 DMA at 5750 level and traded lower to reach the 50 DMA at 5505. The 100 DMA is presently placed at 5575. Most of the trading yesterday was confined between these 50 and 100 DMAs. The presence of a wide gap between the trading ranges of the last two days also complicates the technical position. Such a gap may attract the market to fill it in the short term. Now, if the gap does not get filled in the next few days, the downtrend may continue with a minimum target of 5450. A break of  the 5500 level and 50 DMA may also lead to a revisit of the 5350 - 5400 support levels. However, all these are contingent upon the markets failing to cross the 100 DMA, filling the gap and closing above these important points.

Nifty Futures - Moving Averages Chart  

Nifty Futures - Daily Chart