Nifty Technical Analysis For 8th July 2009

Nifty moved in a narrow range with decent volumes today, forming a nice trading range, with 4220 as resistance and 4150 as support. Breakout or breakdown with volumes confirmation may be traded with the height of the channel (70 points) as the target. Below is the 5 min chart of Nifty Futures:

On the higher side Nifty is may still face resistance at 4220 levels, next resistance is at 4260 levels. Above 4260 levels, it can go up to 4300 levels which is the target of the channel formed yesterday.

At present Nifty is taking support from 4150 levels, next support for it is at 4121 which is low of 6th July as well as an old gap-open. Below 4121 levels next support is at 4055.
Below is the hourly chart of Nifty Futures:

On Daily charts Nifty formed an inside bar, Range of the bar is narrow and the volumes at this bar is good which is indicating 2 things:

1. Market is unable to move up, due to supply (Demand is unable to take over the supply)
2. Buying or an attempt to move up with high effort (volumes) has happened today, which is indicating that if this up move fails then we may see more bearishness, as supply overtakes the demand.

Below is the Daily chart of Nifty Futures: