Update for 26th July 2011

    Nifty Futures Near the Resistance   

Nifty futures closed just below the resistance band between 5700 and 5760 yesterday. It is almost impossible to guess whether a breakout will happen now or not because of the mostly tight range in which markets are trading now. Please read the previous post for more information on resistances and supports.

   Nifty Futures - Daily Chart 

Update for 25th July 2011

    Another Bounce, Now What ?      

• The technical position of the whole market has not changed at all in the past week.
• Nifty futures and Nifty index are steadfastly trading around the 100 DMA at around the 5890.
• All attempts to break out from the narrow range have failed so far.
• Lower supports for the market are at the 5500 - 5550 ( 50 DMA at 5515 ) and 5350 - 5400 levels. 
• Similarly the resistance is at the last week's high at 5650-5660 and  5700 -5760 levels.
• Even if the market breaks out  firmly above the last Friday's high, it will still face the resistance at the 5700 -5760 area from the forward slanting supply line as well as the 200 DMA.
• If the market successfully breaks out above the 5700 -5760 area, then, a rally to 5900 to 5950 may be expected. 
• As already stated in the previous posts, a firm break out above or below the major resistances or supports is becoming a requisite before for most technical signals could start working.      

  Nifty Futures - Daily Chart 

Nifty Futures - Daily Moving Averages Chart