Review of 5TH Feb and Update for 6TH Feb 2013

NIFTY FUTURE – Review of 5^th Feb

NIFTY FUT – A range bound trading session trading within our trading levels not giving away much. Yesterday we mentioned clearly that once NIFTY FUT trades below 5990 there are chances that it will attempt the support zone of 5960-70 levels. This is the exact level that got tested and respected for today.
We advised traders to look for pull back shorts or go short below 5990. While below 5990 was ruled out as a trading option early in the day, but market  gave a pullback short trading opportunity.
Let us also review how markets performed vis a vis our trading levels .
We mentioned that the TREND DECIDER of the day as 5990-96. Means only trading above that level will market show a positive trend for the day. Look at the market high made (exactly below it at 5993). Once NIFTY FUT failed to clear that it again drifted downwards to test our BULLS LAST STAND point of the day. That level was not breached today and NIFTY FUT found exact support in that region to hold on.
BULLS LAST STAND point means that is the last trading level for the BULLS to stage any pull back. Expect markets too turn significantly weak if that level is breached.

NIFTY FUT managed to sustain and hold on to the support supply zone of 5960. It is time to have a look and review the NIFTY FUT charts that we posted at the start of the week and how markets have performed with respect to the technical projections. Read about all that and the trading strategy for tomorrow in our analysis for tomorrow.

NIFTY FUTURE – 6^th Feb  Trading Guide

NIFTY FUT –  Traded in lower levels  and also hovered around the zones of 5960-5990. This trading zone was clearly identified well In advance and hence our readers had a strategy in place. It will be also interesting to review and plan for the trading session ahead with the help of a chart. Let us review the charts that we posted on the start of the week versus the status today.

NIFTY FUT 5 FEB

When we see the charts  the yellow line indicates the movement with respect to our projection. On Sunday when we posted the charts where NIFTY FUT had closed below the 6040 levels we mentioned that NIFTY FUT has closed below the trend line support and had marked and discussed the potential downside targets.
So what are the next levels to watch out for?
On the downside NIFTY FUT has a crucial level to watch out at 5960 levels and a breach of that will possibly test the lower support zones of 5925-40 zones. Below that the next swing support comes at 5890 levels.
On the upside immediate resistance now comes at 6000-6005 levels and a breach above that can go on to test the levels of 6025. Remember 6025 proved as a good support buffer until NIFTY FUT was trading above that level. This will now act as the resistance zones until the prices trades below it.

Now how to trade the coming session. Look for short trades below 5965 or on pull back to 5990 levels. On the upside look for a pull back trade in case NIFTY FUT manages to hold above 6005 levels

Swing indicator wise the short term indicators are negative and will continue to hold so until NIFTY FUT trades below 6005. Mid  term momentum indicators are negative now and will continue to hold so until NIFTY FUT trades below 6025 levels
As for trading today the levels are as follows:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 6000-6005   sustaining above which it will target 6025,6045,6065
POWERTRADE TREND DECIDER OF THE DAY ------- 5960-65
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5930-35
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5910,5890