NIFTY FUTURE QUARTER ENDED MAR 2012

NIFTY FUTURE QUARTERLY

As per the basic charting principles, as the time frame increases - so does the significance of the signals given by the chart. As quarterly chart is next in line to the Annual chart, its significance can not be undermined.

The key features of the Mar 2012 quarter are:

1. During the quarter Nifty Future made a range of 1108 points (High 5700 & Low 4592).

2. After previous 4 quarters of lower top lower bottom formation, we have for the first time, higher top and higher bottom formation - a big positive indeed.

3. The low of the Mar 2012 quarter has taken support on the lower parallel line of the Andrew's Pitchfork drawn in blue.

4.. One negative indication on the chart is given by the upper shadow of the candle. This when seen with the lower top and lower bottom formation on the monthly chart, does not augur well for the sustained up move. The upper shadow indicates selling pressure at higher levels.

5. The major move can now be expected only above previous quarter high (5700) and previous quarter low (4592).

6. During the current quarter (June 2012), on the up side Nifty future will face resistance of the trend line (shown in blue) at 5600. On the down side it will break the lower parallel line of the Andrew's Pitchfork at 4750. Thus giving a range of 850 points before which we can expect any major directional move.

To summarise, I would say that Nifty Future may face strong resistance at 5600 on the up side (considering the upper shadow in Q.E. Mar 2012 candle and Nifty may spend time in this 850 point range during this quarter before we can see any major move.

With Best Wishes for a new Financial Year.

Ketan Asher.