Update for 11th July 2011

 

     A Short Term Reversal in the Making ?

After the last Thursday's phenomenal rally,  Nifty futures opened almost exactly at the 200 day moving average ( 200 DMA ) and thereafter started to slip slowly on Friday. The slow drift accelerated in the afternoon session in to a mini sell off. Nifty futures and the underlying index closed almost at the day's lows. Friday's fall has not only reversed most of the gains achieved on Thursday but also has lead to the formation of a Dark Cloud Cover model pattern in the daily chart. This pattern can be associated with short term reversals, especially, if the open is near or above a resistance. As the open was at the significant resistance of 200 DMA and the falling trend line, this pattern can be indicating a a real short term reversal or at the least, some sideways trading.

Nifty Futures - 5 Minute Intraday  Chart

   

Nifty Futures - Daily Chart    

S&P CNX Nifty Index - Weekly Chart 

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