Update for 21st July 2011

                                     Back to Square One !                                                                                                          

Nifty futures are back to square one as it has again come back to the last week's trading range around the 100 DMA. There is no change in the technical out look as such. Please read the previous posts for a detailed technical view. Readers may please note that the Momentum Signal system is susceptible to whipsaws in ranged markets and the fact is already disclosed in the risk factors page. It seems that some kind of a breakout in either direction is becoming a requisite before the technical signals starts working.

  Nifty Futures - Daily Chart   

Update for 20th July 2011

   A Bounce from the Support Area !

Yesterday, Nifty futures bounced from the upper end of the earlier indicated support area of 5500 - 5550. In fact, Nifty futures recorded nearly identical lows at around the 5560 mark on three trading days. Once the market finds that it is not breaking a support, it tends to move to the opposite direction and tries to test the next resistance. Last week's high at around the 5660 - 5670 remains as the short term resistance. If this level is taken out, then the resistance from the 200 DMA and downward moving upper resistance line at the 5700 - 5750 level may come in to play. Barring a breakout above the latter resistance, Nifty may spend some more time trading directionless in the broad trading range of 5500 to 5700 in the immediate future.

Nifty Futures - Daily Chart