EOD Analysis For 10th July 2012 and Outlook For 11th July 2012

OI in Nifty futures still hovering around the 25 million mark and the trend remains unclear.

Critical levels for Nifty and BankNifty revised as follows

For Nifty:

Supports continue to be 5169-5225-5280
Closing below 5225 can invite a lot of shorts in the system and closing below 5169 will almost certainly invite  a retest of 5032 levels. Current volumes are sufficient to trigger the fall, except that there will be some delay in the fall with these volumes

Resistances continue to be 5325-5348-5378-5408
Closing above 5378-5408 [most important level is 5408 IMHO] will invite a retest of 5532 on upside but a 10% to 15% increase in volumes are a must to sustain the upsides [current volume can only take Nifty upto 5348 IMHO]

For BankNifty:

Supports at 10200-10250 band and the 10400-10450 band; steeper cuts can be anticipated with a close below 10200;

Resistances now at the 10750-10800 band

Illustrative Images for Reference

In terms of time, next week should be very exciting for trade with a downward bias in all likelihood [please note that the downward bias is my personal outlook considering 377 days from the 6th July '11 top of 5740; ultimately markets will determine the prices and volumes and of the critical levels are surpassed, we have to be agile enough to steer our positions in the direction of the then prevailing trend :D. Regardless of direction, the time frame will certainly be exciting for traders with a lot of opportunities]