FKLI Commentary on 06/08/09

FKLI Aug Futures contract rose 6.5 points to settle at 1177 levels as compare to previous trading session to with a total of 6,479 lots traded in the market. FKLI was traded wild during trading session as regional indices and Dow Jones futures were traded within wide range while Europe market were trade mix on opening.

Technically, FKLI breached new high by 0.5 point higher but was traded lower since due to lack of follow through buying interest, view from volume transacted. Based on our technical interpretation, our opinion suggests 1182.5 was a false break. However, 1182.5 high was taken as beginning of correction wave count provided resistance levels at 1179 and 1182.5 were not violated. Traders were advice to hold short position once support levels at 1170 and 1163 were breached.