Review of 1st Feb and Update for 3rd Feb 2013

NIFTY FUTURE – Review of 1^st Feb

NIFTY FUT – For 1^St of Feb we had mentioned that the BEARS LAST point of the day was near 6075 levels.  Let us review how the chart played out. In the morning session NIFTY FUT opened gap up. There on that same level tend to act as a support . Specially on the next day of expiry because of underlying valuation difference it is important to watch out for the early session play.
Once the key levels of 6065 was breached markets drifted downwards and eventually went to test the first support levels of 6045 and eventually drifted downwards to test the levels of 6025, where it made an exact low above that zone.
On Friday we made it clear that 6025 was the critical support level this is exactly where the markets halted and paused. 
So how should we have traded that level? Well one clear indication was to go short below the BEARS last stand point once that level was breached with the stops near day’s higher range or lower.
NIFTY FUT gave another successive close below 6060 levels? So what’s in store for the next session and the coming month. Read our detailed analysis with well explained charts.

NIFTY FUTURE – 4^th Feb  Trading Guide

NIFTY FUT –  managed a second successive close below the 6060 levels and also at the same time managed to hold on to the 6025 levels.
As is evident from these two levels and our analysis was again spot on in identifying these levels. So for the coming sessions 6025 will form at the immediate support to watch out. But a word of worry is we have barely managed a close below the ascending trend line that we discussed few session back. See the Charts below

NIFTY FUT 3RD FEB

On light of this it will be even more important that markets respects these lows levels created. If we review the charts we have just managed a close below the trend lines. On Monday a confirmation of this will be visible if we see markets trading below the support zones . A false break will be confirmed only if NIFTY FUT manages to surface above the 6060 levels.
Immediate hurdle above that will still be at 6095 and expect NIFTY FUT to continue to trade listless in this trading range of 6020 on the downside and 6095 on the upside.
On the downside a breach of 6025 this time should see a sure test of 6000 levels and a breach below that can see NIFTY FUT going into mid term weak trend to test lower levels of 5960. For the continence of the readers we have plotted the key levels on the charts.
Now how to trade the coming session. Stay neutral in this range of 6060-6025 and look for a break out or a breakdown trade outside this range. In case of a gap up scenario above 6060 high risk traders can go short if NIFTY FUT manages to sustain below 6060

Swing indicator wise the short term indicators are negative and will continue to hold so until NIFTY FUT trades below 6065.Mid  term momentum indicators are also neutral at this trading level, they will swing to positive above 6120. This will be negative once NIFTY FUT trades and moves below 5995 levels.

As for trading today the levels are as follows:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 6060-65 sustaining above which it will target 6095,6115,6135
POWERTRADE TREND DECIDER OF THE DAY ------- 6020-25
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5990-6000
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5960,5940