Update for 4th August 2011

A Test of Resistance is On ?

After the gap down open on yesterday, Nifty futures didn't suffer much damage.  Volumes at the lower end seemed to be low and it lead to a short term reversal. The market action also lead to the formation of an inverted hammer kind of candle in the daily charts. Though the technical position has not changed much, it seems that the market is in the process of testing the resistances above. The immediate outlook for the market depends on the outcome of this test. Day before yesterday's low, close, high etc can become the important reference points on this test. 

Nifty Futures Daily Chart   

  

Update for 3rd August 2011

The Drift has Started Again ?  

It seems that the drift has started again on the back of the triggers provided by the international markets. The immediate support for the market is in the area between 5350 - 5400. The next lower support is around the previous double bottom at around the 5175 - 5200 area. As the downtrend has been continuing for a long time by now, sudden steep falls are not expected and hence the author is forced to use the word drift in the title of this update. Market may drift for some more time and in the meanwhile may respond to short term triggers, both negative and positive. Therefore, trading light and part booking of profits, if any, seems to be best solution to overcome the drifting markets.

Nifty Futures Daily Chart